Market extends fall

A brief intraday recovery was derailed by fresh selling as the key indices extended fall and hit intraday low in early afternoon trade. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 211.64 points or 0.56% at 37,577.49. The Nifty 50 index was down 52.60 points or 0.46% at 11,306.85. Index heavyweight Reliance Industries dropped. Pharma shares saw mixed trend. Negative Asian stocks weighed on the sentiment.

Key indices edged lower in early trade on negative Asian stocks. Stocks cut losses in morning trade after an initial slide. The market hovered in negative zone in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.29%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 935 shares rose and 1198 shares fell. A total of 139 shares were unchanged.

Index heavyweight Reliance Industries lost 2.77% to Rs 1,263.45

Pharma shares saw mixed trend. Cadila Healthcare (up 0.42%), Glenmark Pharmaceuticals (up 0.63%), Lupin (up 0.81%) and Alkem Laboratories (up 1.48%) rose. Sun Pharmaceutical Industries (down 1.34%), Cipla (down 0.7%), Dr Reddy's Laboratories (down 1.52%), GlaxoSmithKline Pharmaceuticals (down 1.31%), Aurobindo Pharma (down 0.97%) and Wockhardt (down 0.61%) fell.

Hindalco Industries fell 1.22% after wholly-owned subsidiary, Novelis, reported a 5.5% decline in net income to $103 million in Q4 March 2019 over Q4 March 2018. Hindalco Industries made the announcement after market hours yesterday, 8 May 2019.

Novelis, the wholly-owned subsidiary of Hindalco Industries, posted a 5.5% decline in net income at $103 million in the quarter ended on 31 March 2019. It posted a net income of $109 million in the year-ago period, Hindalco said in a filing to BSE. Net sales increased 1% over the prior year to $3.1 billion in the fourth quarter of fiscal 2019, driven by higher total shipments, partially offset by lower average aluminum prices.

Shipments of flat rolled products increased 8% to 870 kilotonnes. Adjusted EBITDA for the fourth quarter of fiscal 2019 increased 12% to $357 million as compared to $319 million in the prior year. This increase reflects the favorable impacts from higher shipments, improved product mix, and favorable metal costs.

Overseas, Asian stocks were trading lower on Thursday as increased tensions ahead of key Sino-US trade negotiations fanned fresh concerns about the outlook for the global economy.

The U.S. stock market switched direction toward the closing bell to finish mostly lower Wednesday as worries over U.S.-China trade talks lingered.

The United States will raise tariffs from 10% to 25% on $200 billion worth of Chinese imports effective May 10, as per reports. The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs.

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