Market drops as pivotals decline

Key indices settled with modest losses on selling pressure in index pivotals. The barometer index, the S&P BSE Sensex, fell 184.08 points or 0.46% at 40,083.54. The Nifty 50 index fell 66.90 points or 0.55% at 12,021.65. Investors are awaiting the Reserve Bank of India (RBI's) decision on interest rate. Domestic stock market remains closed tomorrow, 5 June 2019 on account of Id-Ul-Fitr (Ramzan Id).

The RBI's Monetary Policy Committee (MPC) meeting is scheduled from 3 to 6 June 2019. The MPC of the RBI will announce its resolution under the Second Bi-monthly Monetary Policy Statement for 2019-20 on Thursday, 6 June 2019.

Key indices cut losses soon after opening with downward gap. A bout of volatility was witnessed in morning trade as the key indices once again sank in negative zone after briefly turning positive. Stocks hovered in negative zone in mid-morning trade. Weakness persisted on the bourses in early afternoon trade. Stocks sharply pared losses after hitting fresh intraday low in afternoon trade. Key indices were trading with modest losses in mid-afternoon trade. Indices extended losses in late trade.

The S&P BSE Mid-Cap index fell 0.22%. The S&P BSE Small-Cap index fell 0.19%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1115 shares rose and 1448 shares fell. A total of 178 shares were unchanged.

Wipro rose 0.86% to Rs 293.80 after the company fixed 21 June 2019, as the record date for the proposed buyback of shares. Wipro plans to buyback up to 32.30 crore fully paid-up equity shares of Rs 2 each, representing up to 5.35% of the total paid-up equity share capital of the company, at a price of Rs 325 per share, for an aggregate amount of up to Rs 10500 crore. The announcement was made after market hours yesterday, 3 June 2019.

Maruti Suzuki India rose 0.6%. Maruti Suzuki India today flagged off one-of-its-kind mobile NEXA terminal, taking the NEXA experience to markets where it is currently not present. The NEXA terminal will reach out to prospective and existing customers throughout the country, giving them an opportunity to experience NEXA. The announcement was made during market hours today, 4 June 2019.

Dr Reddy's Laboratories lost 2.53%. Dr Reddy's Laboratories announced the relaunch of Zenatane (lsotretinoin capsules), 10 mg, 20 mg, 30 mg and 40 mg, a therapeutic equivalent generic version of Accutane, which was approved by the US Food and Drug Administration (USFDA). The announcement was after market hours on Monday, 3 June 2019.

Adani Ports and Special Economic Zone rose 0.27% to Rs 425.05 after the company announced buyback of shares. The company said that its board at its meeting held on 4 June 2019, approved the proposal for buying back up to 3.92 crore equity shares, or 1.89% equity, at maximum buyback price of Rs 500 per share, for an aggregate amount not exceeding Rs 1,960 crore. The announcement was made during the market hours on Tuesday, 4 June 2019.

Overseas, shares in Europe and Asia were under pressure as an intensifying US-China trade war inflamed concerns about global growth. In Europe, Trump and first lady Melania Trump will be continuing their state visit in Britain on Tuesday.

US stocks finished mostly lower Monday, as the government stepped up scrutiny of technology giants for possible violations of antitrust law.

Comments from the US Federal Reserve on Monday, meanwhile, raised expectations the U.S. central bank is moving closer to a rate cut, as did a closely watched U.S. factory survey.

In US economic data, the Institute for Supply Management said its US Manufacturing Purchasing Managers Index declined to 52.1 in May from 52.8 in April, marking the lowest level since October 2016.

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