Key indices slip into the red

Key benchmark indices slipped into the red in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex fell 70.67 points or 0.21% at 34,226.80. The Nifty 50 index dropped 9.30 points or 0.09% at 10,536.20. A jump in trade deficit in January 2018 weighed on sentiment.

Domestic markets opened with modest gains tracking surge in US stocks in the previous session amid holiday thinned trade in Asian markets. Stocks soon trimmed initial gains in morning trade. The market slipped into the red in mid-morning trade.

Among secondary indices, the S&P BSE Mid-Cap index fell 0.68%. The S&P BSE Small-Cap index dropped 0.67%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was quite week. There were more than two losers for every gainer. On the BSE, 1,729 shares fell and 748 shares rose. A total of 86 shares were unchanged.

Cement stocks rose. ACC was up 1.85%, Shree Cement 0.38%, Ambuja Cements 2.41%, and UltraTech Cement rose 0.67%.

Grasim Industries declined 0.33%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Capital goods stocks were mixed. Havells India was down 1.56%, ABB India 0.7%, Thermax 0.03% and Bharat Electronics dropped 0.8%. However, Siemens gained 0.31%, Bharat Heavy Electricals (Bhel) 0.42%, and L&T 0.29%.

Indoco Remedies rose 3.42% after the company said that it has been granted an European good manufacturing practices (GMP) certification dated 12 February 2018 from Regulatory Authority of Hungary for its manufacturing facility for non sterile products (Goa - Plant lll), located at L-32, 33, 34 Verna Industrial Estate, Goa.

The EU GMP certification will enable Indoco to continue to export medicinal products to all European countries. The granted GMP certification will also continue to support exports of drug products to Canada, Australia, New Zealand & rest of the emerging territories as well. The announcement was made after market hours yesterday, 15 February 2018.

8k Miles Software Services jumped 7.44% after the company announced that it is launching 8K Health Edge, a proprietary Blockchain platform which may translate into solutions for some of the most complex problems in global healthcare. As the world's healthcare needs not only continue to grow and become more complex, technology such as Blockchain is underutilized, 8K Miles Software Services said. The announcement was made after market hours yesterday, 15 February 2018.

On the macroeconomic data front, merchandise exports increased 9.1% to $24.38 billion in January 2018 over a year ago. Meanwhile, merchandise imports surged 26.1% to $40.68 billion. The trade deficit jumped 64.6% to $16.30 billion in January 2018 from $9.9 billion in January 2017.

Overseas, it is a shortened week for greater China markets, with mainland China markets remaining shut from 15 to 21 February 2018 and Hong Kong markets shut from 16 to 19 February 2018 for the Lunar New Year. Most of the other Asian markets are also closed for a holiday.

US stocks rose for the fifth day in a row yesterday 15 February 2018, led by technology stocks. They have now recovered about half their losses during the market's dramatic plunge earlier this month on worries over higher inflation and rising treasury yields. In economic news, the Labor Department said US wholesale prices rose 0.4% in January, the biggest increase since November.

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