Market ends with modest losses

Key indices settled with modest losses as weakness in banks and FMCG pivotals weighed. The barometer index, the S&P BSE Sensex, fell 215.37 points or 0.61% to 35,011.89, as per the provisional closing data. The Nifty 50 index fell 67.70 points or 0.63% to 10,628.50, as per the provisional closing data.

Investors remained on the sidelines ahead of Reserve Bank of India's (RBI) monetary policy review meeting beginning today. The RBI's Monetary Policy Committee (MPC) will meet between 4-6 June 2018 for the second bi-monthly monetary policy statement for 2018-2019. The resolution of the MPC will be unveiled at 14:30 pm on Wednesday, 6 June 2018.

After opening higher, indices declined in morning trade. Indices recovered and hovered near flat line in early afternoon trade. Shares hit fresh intraday low in late trade as selling intensified.

The Sensex rose 328.33 points, or 0.93% at the day's high of 35,555.59 in early trade. The index fell 245.01 points, or 0.70% at the day's low of 34,982.25 in late trade. The Nifty rose 74.10 points, or 0.69% at the day's high of 10,770.30 in early trade. The index fell 77.85 points, or 0.73% at the day's low of 10,618.35 in late trade.

Among secondary barometers, the BSE Mid-Cap index fell 0.82%. The BSE Small-Cap index fell 2.09%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 566 shares rose and 2,122 shares fell. A total of 184 shares were unchanged.

HDFC Bank (down 2.83%), Bharti Airtel (down 2.67%), Power Grid Corporation of India (down 2.19%), Adani Ports and Special Economic Zone (down 2.04%), Hindustan Unilever (down 1.7%) and State Bank of India (down 1.44%), were the major Sensex losers.

Infosys (up 1.57%), Mahindra & Mahindra (up 1.49%), Tata Steel (up 1.34%), Reliance Industries (up 1.09%) and TCS (up 0.85%), were the major Sensex gainers.

Dr Reddy's Laboratories gained 2.96% after the company announced that the audit of its API Srikakulam Plant (SEZ), Andhra Pradesh by the USFDA, has been completed with no observations. The announcement was made on Saturday, 2 June 2018.

Overseas, European stocks were trading higher as optimism for the world's largest economy helped investors put concerns over protectionism to one side. Asian stocks were trading higher, tracking gains seen on Wall Street on Friday, 1 June 2018. US stock-market indices jumped on Friday, following a solid jobs data for May, while shrugging off concerns over Italian politics and trade wars.

The US labor market remains strong with 223,000 new jobs created in May, while the unemployment rate fell to an 18-year low of 3.8%. Wage growth was modest, with the yearly rate of pay rising to 2.7% from 2.6%. Receding fears about political upheaval in Italy also helped boost sentiment.

Despite the positive mood, trade concerns continued to linger after US-China trade talks yielded no major breakthroughs. China threatened that previous trade agreements negotiated by the countries will not take effect if the Trump administration goes ahead with a planned tariff increase.

US allies also took aim during a G-7 finance leaders meeting at metals tariffs imposed by the Trump administration.

On the US data front, the Institute for Supply Management said Friday that its manufacturing index rose to 58.7%, up 1.4% from April and a two-month high.

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