Nifty slips below 11,000

Key benchmarks were trading lower in morning trade amid negative Asian cues. At 10:19 IST, the barometer index, the S&P BSE Sensex, was down 24.01 points or 0.07% at 36,517.62. The Nifty 50 index was down 22.30 points or 0.20% at 10,996.60. The Nifty slipped below the psychologically important 11,000 mark in morning trade after opening above that level.

Trading was volatile. The Sensex rose 117.08 points, or 0.32% at the day's high of 36,658.71 in early trade. The index fell 96.47 points, or 0.26% at the day's low of 36,445.16 in morning trade. The Nifty rose 0.6 points, or 0.01% at the day's high of 11,019.50 in early trade. The index fell 43.30 points, or 0.39% at the day's low of 10,975.60 in morning trade.

Among secondary barometers, the BSE Mid-Cap index was down 1.15%. The BSE Small-Cap index was down 1.20%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 534 shares rose and 1376 shares fell. A total of 90 shares were unchanged.

Metal shares declined. Jindal Steel & Power (down 2.93%), NMDC (down 2.36%), Hindustan Copper (down 2.1%), National Aluminium Company (down 1.69%), Steel Authority of India (down 1.61%), Tata Steel (down 1.57%), Hindustan Zinc (down 0.99%), Hindalco Industries (down 0.89%), JSW Steel (down 0.46%) and Vedanta (down 0.38%), edged lower.

FMCG shares were mixed. Tata Global Beverages (down 2.38%), Bajaj Corp (down 1.28%), Marico (down 1.07%), Dabur India (down 0.59%), Procter & Gamble Hygiene & Health Care (down 0.39%) and Jyothy Laboratories (down 0.35%), edged lower. Nestle India (up 0.44%), GlaxoSmithKline Consumer Healthcare (up 0.78%), Britannia Industries (up 1.04%) and Godrej Consumer Products (up 2.62%), edged higher.

FMCG major Hindustan Unilever (HUL) was up 1.31%. The company will announce Q1 June 2018 earnings today, 16 July 2018.

PC Jeweller fell 19.72% after the company said that in view of the non-receipt of the requisite NOC from the company's bankers, the board of directors has decided to withdraw the buyback offer with immediate effect. It may be recalled that PC Jeweller had on 10 May 2018 announced the proposal for buyback of upto 1.21 crore equity shares, comprising of 3.07% of the total paid-up equity capital of the company, for an aggregate amount not exceeding Rs 424 crore, at Rs 350 per share, on a proportionate basis through the tender offer route.

Overseas, Asian shares declined. Market in Japan is closed for a holiday on Monday. Meanwhile, China on Monday posted second-quarter GDP growth of 6.7% from a year ago, slightly lower than 6.8% in the first quarter of 2018.

In US, the Dow on Friday moved above the 25,000 level for the first time in nearly a month while the technology-powered Nasdaq to a record, underlining an uptrend that has been driven by signs of economic strength and solid quarterly earnings.

On the US data front, the cost of import goods fell sharply in June to mark the biggest drop in about a year and a half, though the respite is unlikely to continue once tariffs between the US and other countries go into effect. A read on consumer sentiment fell to a six-month low of 97.1 in July.

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