Metal and mining stocks decline

Stocks once again regained strength in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was up 56.41 points or 0.16% at 35,526.76. The Nifty 50 index was up 17.35 points or 0.16% at 10,779.80. Metal and mining stocks fell.

Domestic stocks cut initial losses triggered by negative Asian stocks. Volatility ruled the roost in morning trade as the key benchmark indices trimmed almost entire intraday gains after staging a pullback from lower levels. Key benchmark indices extended gains in mid-morning trade. Fresh buying in index pivotals pushed the key benchmark indices to day's high in early afternoon trade. Key barometers sharply pared gains in afternoon trade.

Broader market declined. The S&P BSE Mid-Cap index was down 0.21%. The S&P BSE Small-Cap index was down 0.52%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 845 shares rose and 1662 shares fell. A total of 136 shares were unchanged.

Metal and mining stocks fell. JSW Steel (down 2.8%), Tata Steel (down 2.61%), Steel Authority of India (Sail) (down 1.1%), National Aluminium Company (down 2.87%), Hindustan Zinc (down 1.73%), Jindal Steel & Power (down 2.88%), NMDC (down 0.83%) and Hindustan Copper (down 0.98%) edged lower. Hindalco Industries (up 1.42%) and Vedanta (up 0.22%) rose.

Cement stocks advanced on reports the goods and services tax (GST) Council will consider a proposal to reduce GST rates on more items used in construction to 18% from 28%. At present, raw material such as cement and paints come under the 28% tax slab. However, many other items used in construction are in the 18% slab. Cement stocks were also boosted by reports that cement manufacturers in north and central India have raised prices by Rs 5-15 per bag Ambuja Cements (up 3.55%), ACC (up 3.26%), UltraTech Cement (up 2.42%) and Shree Cement (up 4.72%) gained.

Grasim Industries was up 1.84%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Info Edge (India) rose 5.38% after the company said it has signed an agreement with SoftBank to jointly invest $90 million in the parent of PolicyBazaar. Info Edge (India) has entered into an agreement with SVF India Holdings (Cayman) (Soft Bank), a wholly owned subsidiary of SoftBank Vision Fund L.P., of which SoftBank Group Corp. is a limited partner, whereby Soft Bank has agreed to invest an amount equivalent to about $45 million for 49.99% stake (on a fully diluted basis) in Diphda Internet Services (Diphda), a wholly owned-subsidiary of the company, for the time being. The announcement was made after market hours yesterday, 25 June 2018.

Info Edge (India) has also agreed to invest an amount equivalent to about $45 million in Diphda for 50.01% stake (on a fully diluted basis); and to jointly invest through Diphda, an amount equivalent to about $90 million in Etechaces Marketing & Consulting (Etechaces) for 8.93% stake (on a fully diluted basis post completion of fund raise exercise with other investors).

Overseas, European stocks were trading higher, rebounding after trade concerns caused a sharp sell-off for global markets in the previous session.

Asian markets were mixed as moves by the US to gain an upper hand on trade with China weighed on the technology sector. As per reports, the Trump administration plans to limit exports of some high-tech products to China, and also limit investment in technology firms by companies with substantial Chinese ownership.

US stocks closed sharply lower yesterday, 25 June 2018 as President Donald Trump's threats of more protectionism against major partners were met with Chinese and European vows of retaliation.

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