Market slides on negative European signals

Key indices declined due to negative cues from European stocks. The barometer index, the S&P BSE Sensex, fell 152.53 points or 0.49% to 31,138.21, as per the provisional closing data. The Nifty 50 index fell 56.20 points or 0.58% to 9,573.80, as per the provisional closing data. Selling in bank shares put pressure on key benchmarks.

The Sensex fell 180.35 points, or 0.58% at the day's low of 31,110.39 in late trade, its lowest level since 16 June 2017. The index rose 74.65 points, or 0.24% at the day's high of 31,365.39 in early trade. The Nifty fell 64.70 points, or 0.67% at the day's low of 9,565.30 in early afternoon trade, its lowest level since 15 June 2017. The index rose 17.65 points, or 0.18% at the day's high of 9,647.65 in early trade.

Among secondary barometers, the BSE Mid-Cap index provisionally fell 1.21%. The BSE Small-Cap index provisionally fell 1.46%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,936 shares fell and 683 shares rose. A total of 137 shares were unchanged.

The total turnover on BSE amounted to Rs 7376.91 crore, higher than turnover of Rs 4693.41 crore registered during the previous trading session.

Realty shares declined. Prestige Estates Projects (down 4.72%), Oberoi Realty (down 3.47%), Godrej Properties (down 3.28%), Unitech (down 3.05%), Sunteck Realty (down 2.89%), Anant Raj (down 2.7%), Parsvnath Developers (down 2.02%), Sobha (down 1.89%), D B Realty (down 1.81%), DLF (down 1.61%), Housing Development and Infrastructure (HDIL) (down 1.32%), Mahindra Lifespace Developers (down 1.22%), Peninsula Land (down 0.99%) and Phoenix Mills (down 0.65%), edged lower. Omaxe (up 0.15%) and Indiabulls Real Estate (up 6.83%), edged higher.

Fortis Healthcare slumped 12.63% to Rs 172.95 after reports suggested IHH Healthcare Berhad is not close to concluding any negotiations to buy controlling stake in the company. Earlier reports had suggested that IHH Healthcare Bhd will be buying a controlling stake in Fortis Healthcare and SRL Logistics from Malvinder and Shivinder Mohan Singh, the promoters of the company.

Meanwhile, the company clarified during trading hours today, 23 June 2017, that earlier its board had approved the enabling fund raising options upto Rs 5000 crore including but not limited to qualified institutional placement, foreign currency convertible bonds or any other method. The company is still evaluating the best possible way to raise the fund and no firm decision in this regard has been approved by the board till date.

Reliance Infrastructure gained 2.03% to Rs 503.50 after reports suggested that the company has initiated a process to spin off a new unit, called Reliance Transport. The spinoff will take care of its interests in railway, metro, airport and road projects even as the proposed listing of Infrastructure Investment Trust (InvIT) faces what the company calls some procedural delays after receiving the nod from the stock market regulator, report added.

Meanwhile, Reliance Infrastructure said after market hours yesterday, 22 June 2017 that Reliance Defence, a fully owned subsidiary of Reliance Infrastructure, signed a memorandum of understanding (MOU) at the Paris Air Show with Daher Aerospace, France, a leading supplier of integrated systems for Aerospace and Advanced Technologies. Daher Aerospace is tier one manufacturer in Aerostructures segment comprising fuselage sections and fairings made of composites as well as conventional metals for Dassault Aviation and other leading global aircraft manufacturers.

Signing this MOU on the sidelines of the Paris Air Show, Reliance Defence envisages a strategic partnership with Daher with aim to jointly explore opportunities in design and manufacture of composite parts; design and build welded ducts, metal conduits, swaged pipes and cable harness supports; aerostructure components, integrated logistics, airframes/assemblies and related industrial activities.

Overseas, European stocks edged lower as oil and gas and consumer goods shares declined. Investors on Friday will assess data for eurozone manufacturing and services activity in June. Also Friday, European Union leaders are gathering for their summit in Brussels, where Brexit is high on the agenda one year after the UK voted to leave the bloc.

Most Asian shares ended higher as crude oil prices pulled away from this week's 10-month lows. China's Shanghai Composite Index was up 0.25% as increased regulatory scrutiny over the borrowings of China's most prolific overseas deal makers weighed on Chinese shares. The move, which sent shares of the companies' listed units tumbling late Thursday, hurt investor sentiment due to concerns about tighter regulations across China's financial markets at a time of volatile trading.

In US, stocks closed mostly lower as weak financials and consumer staples shares eclipsed a rally in the healthcare and biotechnology sectors. Health-care stocks were among the biggest gainers as lawmakers released a discussion draft of the health-care bill that aims to cut Medicaid and eliminate penalties for people who don't buy insurance, among other changes. The Dow Jones Industrial Average slipped 12.74 points to end at 21,397.29. The Nasdaq Composite Index bucked the trend for a second day to edge up 2.73 points to close at 6,236.69.

A report on weekly jobless claims showed that fewer than 250,000 Americans applied for unemployment benefits in mid-June. Initial jobless claims rose by 3,000 to 241,000 in the seven days stretching from 11 June to 17 June 2017, Labor Department said.

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