Nifty drops below 12,000

Key indices extended decline triggered in early trade on selling pressure in index pivotals. At 10:24 IST, the barometer index, the S&P BSE Sensex, was down 114.39 points or 0.29% at 39,969.15. The Nifty 50 index was down 54.50 points or 0.45% at 11,967.15. The Sensex fell below the psychological 40,000 level while the Nifty declined below the psychological 12,000 level.

Investors are awaiting the Reserve Bank of India (RBI's) decision on interest rates. The RBI's Monetary Policy Committee (MPC) meeting is scheduled from 3 to 6 June 2019. The MPC of the RBI will today, 6 June 2019 announce its resolution under the Second Bi-monthly Monetary Policy Statement for 2019-20.

Key indices were trading with small losses in early trade as trading resumed after a local holiday. Domestic stock market were closed yesterday, 5 June 2019, on account of Id-Ul-Fitr (Ramzan Id).

The S&P BSE Mid-Cap index was down 0.57%. The S&P BSE Small-Cap index was down 0.51%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, turned weak. On the BSE, 697 shares rose and 1148 shares fell. A total of 119 shares were unchanged. Breadth was strong in early trade.

Asian Paints (up 2.47%), Coal India (up 1.99%), Power Grid Corporation of India (up 1.92%), Hindustan Unilever (up 1.65%) and HCL Technologies (up 0.63%) edged higher from the Sensex pack.

Yes Bank (down 2.42%), IndusInd Bank (down 1.78%), State Bank of India (down 1.58%), M&M (down 1.56%) and Tata Steel (down 1.04%) edged lower from the Sensex pack.

Indoco Remedies lost 2.23% after the company announced that the USFDA had concluded inspection at the company's sterile manufacturing facility in Verna, Goa (Plant II) from 27 May 2019 to 4 June 2019, issuing 4 observations. These observations are procedural in nature, not pertaining to data integrity. The company will submit its responses shortly.

Natco Pharma rose 0.6%. Natco Pharma announced its submission of an Abbreviated New Drug Application (ANDA) with Para IV certification with US Food and Drug Administration (USFDA) for the generic version of Bosentan 32mg tablets for oral suspension. Bosentan 32mg tablets are sold by Actelion Pharmaceuticals US, Inc. (acquired by Johnson & Johnson), under the brand Tracleer. Tracleer is indicated for the treatment of pulmonary arterial hypertension. As per Johnson & Johnson's annual report, for the year ending 2018, Tracleer had registered sales of approx. $268 million in the US market, and the 32 mg is one strength that is indicated for pediatric patients.

Overseas, Asian shares were trading mixed Thursday as investors feared a looming US trade war with Mexico would further depress global growth.

Wall Street's major indexes rose on Wednesday as investors bet on a Federal Reserve interest rate cut after weak private sector jobs data and hopes grew that the United States and Mexico would reach an agreement to avoid US tariffs on Mexican goods.

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