Market drops on negative global cues

Domestic stocks are trading weak on negative global cues due to worsening coronavirus pandemic and soured US-China relations. At 9:15 IST, the barometer index, the S&P BSE Sensex, was down 231.75 points or 0.61% at 37,908.72. The Nifty 50 index was down 63.65 points or 0.57% at 11,151.80.

The S&P BSE Mid-Cap index was down 0.05%. The S&P BSE Small-Cap index was down 0.14%.

The market breadth, indicating the overall health of the market, is negative. On the BSE, 637 shares rose and 957 shares fell. A total of 63 shares were unchanged.

Key results today:

ITC, Asian Paints and Ambuja Cements will declare their April - June 2020 quarterly results today, 24 July 2020.

Stocks in news:

Wipro rose 0.9% after the company announced that it has signed a definitive agreement to acquire 4C, one of the largest Salesforce partners in UK, Europe and the Middle East. The acquisition is subject to customary closing conditions and is expected to be closed in the quarter ending September 30, 2020.

Lupin rose 1.19%. Lupin announced that it has received tentative approval for its Empagliflozin and Linagliptin Tablets, 10 mg/5 mg and 25 mg/5 mg, from the United States Food and Drug Administration (U.S. FDA) to market a generic version of Glyxambi Tablets, 10 mg/5 mg and 25 mg/5 mg, of Boehringer Ingelheim Pharmaceuticals, Inc.

ABB India lost 2.25% after the company reported 76.66% fall in net profit to Rs 16.28 crore on 41.91% fall in total income to Rs 1,014.40 crore in Q1 June 2020 over Q1 June 2019.

AU Small Finance Bank advanced 5% after the company reported 5.51% rise in consolidated net profit to Rs 200.81 crore on 20.68% rise in total income to Rs 1,409.91 crore in Q1 June 2020 over Q1 June 2019.

Supreme Petrochem fell 2.37% after the company reported net loss of Rs 11.88 crore in Q1 June 2020 as compared to net profit of Rs 41 crore in Q1 June 2019. Total income fell 62.06% to Rs 294.05 crore in Q1 June 2020 over Q1 June 2019.

Kingfa Science & Technology (India) gained 4.47%. Due to massive impact of Corona Virus (COVID-19) Pandemic outbreak across the globe and as part of corporate strategy, the company has started the manufacturing of MASKS at its Chakan Plant at Pune.

Global Markets:

Overseas, Asian stocks are trading lower on Friday, led by Chinese stocks, as investor sentiment takes a hit over worsening U.S.-China tensions and a sell-off in U.S. markets overnight. Markets in Japan are closed for a holiday on Friday.

After the U.S. government ordered the closure of the Chinese consulate in Houston, Secretary of State Mike Pompeo slammed China in a speech on Thursday. He said Washington will no longer tolerate Beijing's attempts to usurp global order.

In US, stocks dropped on Thursday as Microsoft and Apple led the broader market lower and traders pored through disappointing unemployment data.

Microsoft shares dropped 4.4% despite reporting better-than-expected earnings. Apple slid 4.6% and Amazon dropped 3.7%. Facebook ended the day lower by 3% along with Google-parent Alphabet.

The latest unemployment figures also dented market sentiment. Initial claims for state unemployment benefits increased to a seasonally adjusted 1.416 million for the week ended July 18, from 1.307 million in the prior week, the Labor Department said on Thursday.

Meanwhile, Republicans were reportedly considering extending a $600-per-week unemployment benefit at a reduced rate of $100 per week. On Thursday, Treasury Secretary Steven Mnuchin said an extension in unemployment benefits will be based on approximately 70% wage replacement.

Back home, domestic equity benchmarks ended near the day's high on Thursday, supported by firmness in banks stocks and index heavyweight Reliance Industries. The barometer index, the S&P BSE Sensex, rose 268.95 points or 0.71% at 38,140.47. The Nifty 50 index climbed 82.85 points or 0.74% at 11,215.45.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,740.50 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 931.91 crore in the Indian equity market on 23 July, provisional data showed.

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