Market extends intraday losses

Key indices further extended losses and hit fresh intraday low in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was down 147.37 points or 0.42% at 34,864.52. The Nifty 50 index was down 61.50 points or 0.58% at 10,567. The Sensex was trading below the psychologically important 35,000 mark.

Sentiment was hurt after a survey showed services activity in May shrank for the first time in three months as new orders stagnated. Caution prevailed ahead of the central bank's policy decision on Wednesday. The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meets 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.

The indices displayed some volatility in early trade and later slipped into negative terrain in morning trade. Indices hit fresh intraday low in mid-morning trade. Indices sharply pared losses in early afternoon trade. The indices hit fresh intraday low in mid-afternoon trade.

The Sensex rose 61.23 points, or 0.17% at the day's high of 35,073.12 in early trade. The index fell 205.13 points, or 0.59% at the day's low of 34,806.76 in mid-afternoon trade, its lowest intraday level since 30 May 2018. The Nifty rose 4.65 points, or 0.04% at the day's high of 10,633.15 in early trade. The index fell 73.10 points, or 0.69% at the day's low of 10,555.40 in mid-afternoon trade, its lowest intraday level since 30 May 2018.

Broader market declined sharply. Among secondary barometers, the BSE Mid-Cap index was down 1.27%. The BSE Small-Cap index was down 2.53%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 451 shares rose and 2113 shares fell. A total of 111 shares were unchanged.

Realty shares declined. Housing Development and Infrastructure (HDIL) (down 9.86%), Peninsula Land (down 7.16%), D B Realty (down 6.63%), Parsvnath Developers (down 5.01%), Anant Raj (down 4.9%), Unitech (down 3.04%), Indiabulls Real Estate (down 1.99%), Sobha (down 1.54%), Godrej Properties (down 1.34%), DLF (down 0.93%), Mahindra Lifespace Developers (down 0.91%), Phoenix Mills (down 0.9%) and Omaxe (down 0.22%), edged lower. Prestige Estates Projects (up 0.39%) and Oberoi Realty (up 0.91%), edged higher.

Sunteck Realty was down 0.24%. The company said that its board of directors has approved a proposal for an increase in the investment limits by Registered Foreign Portfolio Investors (RFPIs) including Foreign Institutional Investors (FIIs) from the existing limit of 24% to 49% of the paid up equity share capital of the company. The increase will make available more limits for the RFPIs/ FIIs to invest in the equity share capital of the company. The announcement was made after market hours yesterday, 4 June 2018.

Most auto shares declined. Mahindra & Mahindra (down 1.11%), Ashok Leyland (down 0.78%), Bajaj Auto (down 0.63%), Hero MotoCorp (down 0.25%), Escorts (down 0.18%) and Tata Motors (down 0.09%), edged lower. TVS Motor Company (up 0.05%), Eicher Motors (up 0.33%) and Maruti Suzuki India (up 0.45%), edged higher.

On the macro front, the Nikkei India Services Business Activity Index fell to 49.6 last month from 51.4 in April. A reading below 50 indicates contraction in activity, while a number above it signals expansion. Services activity in the country fell below the 50-point-mark for the first time since February, when the Index reading stood at 47.8.

Overseas, a two-day recovery in European shares lost steam as the lack of progress in US-China trade talks and political noise in Italy kept investors cautious.

Asian markets reversed early losses and were trading higher. US market posted strong gains Monday, led by a rally in the technology and consumer discretionary sectors, as traders appeared to shrug off global trade tensions and focused on a favorable economic backdrop instead.

US factory orders fell by 0.8% in April. The decline was concentrated in commercial aircraft. Orders for nondurable goods rose slightly. The increase in factory orders in March, meanwhile, was raised a tick to 1.7%.

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