Market languishes in negative zone

Key benchmark indices further extended slide in mid-afternoon trade. At 14:23 IST, the barometer index, the S&P BSE Sensex was down 267.18 points or 0.86% at 30,871.03. The Nifty 50 index lost 96.60 points or 1.01% at 9,478.35. Negative cues from European markets spoiled investors' sentiment.

Key indices opened higher after a holiday. They later slipped into the negative terrain amid lack of key domestic or global cues to boost investors' spirits. Indices extended slide in afternoon trade as selling pressure intensified amid weakness in European markets.

The S&P BSE Mid-Cap index declined 1.28%. The S&P BSE Small-Cap index lost 1.78%. The decline in both the indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,920 shares declined and 611 shares rose. A total of 138 shares were unchanged.

Aviation stocks declined. SpiceJet (down 3.55%), InterGlobe Aviation (down 1.46%) and Jet Airways (India) (down 1.29%) edged lower.

Power generation and power distribution stocks edged lower. GMR Infrastructure (down 3.52%), Torrent Power (down 1.79%), NHPC (down 1.54%), Power Grid Corporation of India (down 1.14%), Tata Power Company (down 0.31%), NTPC (down 0.03%), Reliance Infrastructure (down 0.24%) and Adani Power (down 0.37%) declined. Jaiprakash Power Ventures (up 15.65%) and Reliance Power (up 0.62%) edged higher.

Overseas, European shares declined as a drop in autos stocks after Germany's Schaeffler cut its profit outlook and disappointment over a failed buyout of Stada spoiled investors sentiment.

The European Central Bank (ECB) chief Mario Draghi gave an upbeat view of the euro zone economy today, 27 June 2017, but still urged the need for monetary policy to become accommodative.

Draghi yesterday, 26 June 2017, defended the ECB's easy monetary policy. Draghi, speaking to university students in Lisbon, reportedly said super low rates create jobs, foster growth and benefit borrowers, ultimately easing inequality.

Asian stocks witnessed mixed trend as investors watched for signals from central bankers' speeches. Federal Reserve Chair Janet Yellen is due to speak in London today, 27 June 2017.

US equities closed mixed yesterday, 26 June 2017, as a rise in the financial sector helped offset losses from large-cap technology stocks.

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