Market reverses intraday gains; breadth weak

Key benchmark indices reversed intraday gains to hit fresh intraday low in negative zone in afternoon trade as sentiment was dampened by escalating Indo-Pak tensions. At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 17.75 points or 0.06% at 30,347.50. The Nifty 50 index was off 11.10 points, or 0.12% at 9,375.05. Realty stocks declined sharply. Capital goods stocks edged lower.

As per reports, jet fighters of Pakistan Air Force made flights near Siachen Glacier today, 24 May 2017. But Indian Air Force reportedly said there was no violation of India's air space. Siachen is in the northern part of Kashmir.

Among secondary barometers, the BSE Mid-Cap index was down 1.26% . The BSE Small-Cap index was down 1.32%. The fall in both these 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. 1,929 shares declined and 624 shares rose. A total of 130 shares were unchanged.

Capital goods stocks edged lower. Bharat Heavy Electricals (Bhel) (down 3.53%), BEML (down 3.98%), Bharat Electronics (down 3.37%), L&T (down 1%), Punj Lloyd (down 3.99%) and Siemens (down 1.3%) declined. Thermax (up 0.22%) and ABB India (up 1.19%) rose.

Realty stocks declined sharply. DLF (down 4.48%), Indiabulls Real Estate (down 7.45%), Housing Development and Infrastructure (down 0.24%), D B Realty (down 3.65%), Unitech (down 3.31%), Sobha (down 2.55%), Godrej Properties (down 3.11%), Oberoi Realty (down 0.06%) and Parsvnath Developers (down 2.87%) dropped. Prestige Estates Projects (up 1.51%) rose.

Future Retail gained 0.46% after net profit rose 17.3% to Rs 123 crore on 25.31% rise in total income from operations to Rs 4483.84 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 23 May 2017.

Cupid lost 10.17% after net profit rose 6.72% to Rs 4.92 crore on 1.37% growth in total revenue to Rs 18.49 crore in Q4 March 2017 over Q4 March 2016. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 7.57% to Rs 8.18 crore in Q4 March 2017 over Q4 March 2016. EBITDA margin shrank to 44% in Q4 March 2017, from 49% in Q4 March 2016. The result was announced after market hours yesterday, 23 May 2017.

Overseas, European stocks were trading lower after China's rating was downgraded by Moody's and as markets were still recovering from the Manchester bombing.

Most Asian shares were trading higher as investors looked ahead to US Federal Reserve views on interest rate hike prospects and await an upcoming OPEC meeting. Investors are awaiting the release of minutes from the Fed from its previous meeting for details on the probability of a rate hike in June.

China's Shanghai Composite was down 0.24%. Moody's Investors Service downgraded China's credit rating to A1 from Aa3, changing its outlook to stable from negative, citing concerns efforts to support growth will spur debt growth across the economy.

In US, shares closed higher yesterday, 23 May 2017, marking a fourth straight session in the green following the White House's release of its 2018 budget proposal. On the economic data front, US flash PMI reading for services and manufacturing for May were mixed. Manufacturing PMI dipped to an 8-month low, while services PMI rose to a 4-month high.

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