Nifty slips below 11,700; two-wheeler stocks skid

Selling picked up pace in mid-afternoon trade, with the Nifty slipping below 11,700-mark. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 75.15 points or 0.19% to 39,119.34. The Nifty 50 index was down 22.05 points or 0.19% to 11,697.90.

In the broader market, the S&P BSE Mid-Cap index was down 0.35%. The S&P BSE Small-Cap index was down 0.02%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1015 shares rose and 1350 shares fell. A total of 180 shares were unchanged.

Two-wheeler stocks witnessed selling pressure. TVS Motors (down 3.06%), Bajaj Auto (down 1.98%) and Hero Motorcorp (down 1.11%) declined.

The government is reportedly thinking of a 2023 deadline for three-wheelers and 2025 for all two-wheelers up to 150cc engine capacity to turn electric. Automakers reportedly opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped to a two-decade low, would cause market disruption and job losses.

FMCG stocks were mixed. Jyothy Laboratories (up 3.78%), Bajaj Consumer Care (up 1.37%), Marico (up 0.84%), Nestle India (up 0.77%), Godrej Consumer Products (up 0.6%) and Colgate Palmolive (India) (up 0.58%) edged higher. Britannia Industires (down 1.5%), Tata Global Beverages (down 1.15%), GlaxoSmithkline Consumer Healthcare (down 0.55%), Dabur India (down 0.34%), Hindustan Unilever (down 0.25%) and Procter & Gamble Hygiene & Health Care (down 0.18%) edged lower.

Housing Development and Infrastructure (HDIL) was up 13.74% to Rs 17.80 after the company announced allotment of 2 crore equity shares to one of its promoter, Sarang Wadhawan, upon conversion of share warrants. Post transaction, Sarang Wadhawan's stake in HDIL increased from 8.63% to 12.48%. The announcement was made on 22 June 2019.

Rites was down 1.11% to Rs 279.20. The company said its board recommended issuing one bonus equity share for every four equity shares held.

Metal stocks were bearish. Vedanta (down 2.84%), Jindal Steel & Power (down 2.52%), Tata Steel (down 2.46%), Steel Authority of India (down 2%), Hindustan Zinc (down 0.89%), National Aluminium Company (down 0.41%), and NMDC (down 0.31%) declined. Hindalco Industries (up 0.68%) and Hindustan Copper (up 0.13%) edged higher.

Media reports indicated today, 24 June 2019, that the Reserve Bank of India (RBI) deputy governor Viral Acharya has quit his role six months before the end of his tenure. Acharya is reportedly returning to New York University's Stern School of Business (NYU Stern) in August, instead of February 2020, as CV Starr Professor of Economics.

The RBI clarified today, 24 June 2019, that a few weeks ago, Dr. Viral V. Acharya, submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a deputy governor of the RBI beyond 23 July 2019. Consequential action arising from his letter is under consideration of the competent authority, the central bank added.

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