Market hovers in negative terrain

Key benchmark indices continued to languish in negative zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, fell 29.32 points or 0.1% at 30,828.20. The Nifty 50 index declined 12.70 points or 0.13% at 9,491.40. Market sentiment was weak amid negative global cues.

Markets were awaiting the nation-wide rollout of the much discussed indirect tax reform the Goods and Services Tax (GST) with effect from tomorrow, 1 July 2017.

The Sensex lost 176.86 points or 0.57% at the day's low of 30,680.66 in early trade, its lowest level since 25 May 2017. The index fell 28.12 points or 0.09% at the day's high of 30,829.40 in morning trade.

The Nifty lost 55.35 points or 0.58% at the day's low of 9,448.75 in early trade, its lowest level since 25 May 2017. The index fell 12.25 points or 0.12% at the day's high of 9,491.85 in morning trade.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.07%. The S&P BSE Small-Cap index advanced 0.04%. Both the indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,091 shares declined and 1,081 shares rose. A total of 142 shares were unchanged.

Telecom stocks declined. Bharti Airtel (down 1.96%), Bharti Infratel (down 1.52%) and Reliance Communications (down 0.91%) edged lower. Idea Cellular (up 0.12%) edged higher.

Cement stocks were mixed. Grasim Industries (up 3.22%), Shree Cement (up 0.46%) and UltraTech Cement (up 0.06%) edged higher. ACC (down 0.85%) and Ambuja Cements (down 0.2%) edged lower.

L&T was down 2.25% at Rs 1,664.05. The company said that S.N. Subrahmanyan will step into his role as CEO and Managing Director of the company with effect from 1 July 2017. The announcement was made during market hours today, 30 June 2017.

Unichem Laboratories rose 2.77% at Rs 267.30 after the company said that its formulations manufacturing facility at Goa has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA). The announcement was made during market hours today, 30 June 2017.

The receipt of EIR indicates the successful closure of the inspection and the queries raised during the audit (Form 483). The inspection has now been closed by the USFDA. The inspection was carried out between 14 March 2017 and 20 March 2017.

Aditya Birla Nuvo (ABNL) advanced 3.22% at Rs 1,878 after the company announced that Premji Invest Opportunities Fund will buy 2.2% stake in Aditya Birla Capital (ABCL). The proposed transaction values ABCL at Rs 32000 crore on a post money basis, ABNL said. The announcement was made after market hours yesterday, 29 June 2017.

Meanwhile, the India Meteorological Department (IMD) in its weekly weather report yesterday, 29 June 2017 said that during the week from 22nd June to 28th June 2017, the all India actual rainfall stood at 48.6 mm as against normal rainfall of 51.1 mm, with a departure of minus 5%.

The all India cumulative seasonal rainfall from 1st June to 28th June 2017 stood at 147.8 mm as against normal rainfall of 148 mm, with a departure of 0%.

On the macro front, the implementation of landmark tax reform Goods and Services Tax (GST) will be closely watched. There will be a special function in the Central Hall of Parliament House tonight wherein a number of programs will be witness to the change in tax structure and implementation of GST across the country between the night of June 30 and July 1. The government expects GST to revolutionize India's taxing system and is being marketed as one nation one tax.

Overseas, Asian stocks declined despite marginal improvement in China's manufacturing activity as select tech shares around the region sold off.

In economic news, China's manufacturing activity accelerated more than expected in June, suggesting the world's second-largest economy continued to confound expectations for a slowdown. The official manufacturing PMI rose to 51.7 in June, from 51.2 in May. Levels above 50 indicate expansion, while levels below signal contraction.

US equities fell yesterday, 29 June 2017 as technology stocks' latest drop washed out strong gains from the big banks.

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