Market slips into the red

Key benchmark indices were trading with small losses after slipping into the red in morning trade as profit booking materialised sighting lower global stocks. At 10:20 IST, the barometer index, the S&P BSE Sensex was down 14.64 points or 0.05% at 31,294.85. The Nifty 50 index was down 5.25 points or 0.05% at 9,669.85. A gap-up opening saw indices scale fresh record highs at the onset of the session.

IT stocks surged on positive economic data in the US, the biggest IT outsourcing market for the Indian IT companies. Realty stocks declined on profit booking.

The S&P BSE Mid-Cap index fell 0.11%. The S&P BSE Small-Cap index declined 0.16%. The decline in both the indices was higher than the Sensex's fall in percentage terms.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,167 shares fell and 850 shares rose. A total of 103 shares were unchanged.

IT stocks surged on positive economic data in the US, the biggest IT outsourcing market for the Indian IT companies. Tech Mahindra (up 1.15%), HCL Technologies (up 2.95%), TCS (up 3.19%), and Infosys (up 1.57%) edged higher. Wipro declined 0.2%.

The S&P BSE IT index rose 1.99%, outperforming the Sensex. The index rose for the fourth day in a row.

Realty stocks declined on profit booking. Indiabulls Real Estate (down 1.79%), Oberoi Realty (down 1.07%), DLF (down 1.81%), and Anant Raj (down 2.57%) edged lower. Sobha (up 0.72%) and Unitech (up 0.78%) gained.

The S&P BSE Realty index fell 1%, underperforming the Sensex. The index snapped five-day gains on profit booking.

Cadila Healthcare rose 2.34% after the company said that its formulations manufacturing facility at Baddi in Himachal Pradesh has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA).

This receipt of EIR indicates the successful closure of the inspection points (483s) raised based on the inspection carried out between 21 February 2017 to 1 March 2017. The announcement was made after market hours yesterday, 5 June 2017

Overseas, Asian stocks declined following the lower close on Wall Street yesterday, 5 June 2017, and as markets digested the impact of diplomatic tensions between Qatar and other Middle Eastern nations. South Korean markets are closed for Memorial Day.

Saudi Arabia, Egypt, Bahrain, and the United Arab Emirates all severed diplomatic ties with Doha, accusing it of meddling in their internal affairs and backing terrorism, which the country denies.

Stocks in the US closed the session lower yesterday, 5 June 2017 after hitting record highs before the weekend as investors grapple with a variety of geopolitical issues, both domestic and abroad.

On the data front, the latest read on first-quarter output was raised to 1.7% from 1%, while a read on productivity was raised from a -0.6% read to an unchanged level. The Institute for Supply Management's index on the services sector fell 0.6 points in May, though it remains in solidly positive territory.

Powered by Capital Market - Live News