Sensex drops below 35,000

Key benchmark indices extended early fall and hit fresh intraday low in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was down 112.81 points or 0.32% at 34,990.33. The Nifty 50 index was down 36.55 points or 0.34% at 10,643.10. The Sensex hit intraday low below the psychological 35,000 mark. Cement stocks declined. Telecom stocks saw mixed trend. Decline in most Asian stocks hurt sentiment on the domestic bourses.

The market sentiment was hit by data showing that foreign funds and domestic institutional investors were net sellers of Indian stocks yesterday, 3 May 2018. The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 148.42 crore yesterday, 3 May 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 578.92 crore yesterday, 3 May 2018, as per provisional data.

Domestic stocks nudged lower in early trade as most Asian stocks fell.

The S&P BSE Mid-Cap index was up 0.17%. The S&P BSE Small-Cap index was up 0.08%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was just about positive. On the BSE, 968 shares rose and 939 shares fell. A total of 88 shares were unchanged.

Overseas, most Asian stocks were trading lower as investors awaited the April jobs report out of the US. The Nikkei in Japan remained closed for a holiday.

Activity in China's service sector expanded at a faster pace in April, a private gauge showed Friday, a reading in line with official data last month. The Caixin China services purchasing managers' index rose to 52.9 in April from 52.3 in March, Caixin Media Co. and research firm Markit said. A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.

US stock benchmarks ended off their lows yesterday, 3 May 2018 and the Dow ended higher, in choppy action as investors awaited a key reading of monthly employment. The Dow Jones Industrial Average rose 5.17 points, or less than 0.1%, to 23,930.15. The S&P 500 index declined 5.94 points, or 0.2%, to 2,629.75. The Nasdaq Composite Index closed 12.75 points, or 0.2%, lower at 7,088.15.

On the economic data front, the Markit services purchasing managers index for April came in at 54.6, compared with 54 in March. The Institute for Supply Management's nonmanufacturing index fell more than expected in April, dropping to 56.8, while factory orders rose 1.6% in the month.

Back home, Asian Paints (down 2.04%), Sun Pharmaceutical Industries (down 1.76%) and Infosys (down 1.69%) edged lower from the Sensex pack.

Cement stocks declined. ACC (down 0.16%), UltraTech Cement (down 0.49%) and Shree Cement (down 0.85%) fell.

Ambuja Cements rose 0.83% ahead of its Q1 March 2018 result today, 4 May 2018.

Grasim Industries was off 0.58%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Telecom stocks saw mixed trend. Bharti Airtel (up 1.99%) and Reliance Communications (up 1.33%) rose. Idea Cellular (down 1.02%) and Tata Teleservices (Maharashtra) (down 1.58%) fell.

Shares of Bharti Infratel fell 0.45%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Thirumalai Chemicals rose 3.13% after consolidated net profit rose 107.96% to Rs 39.70 crore on 7.87% increase in net sales to Rs 330.71 crore in Q4 March 2018 over Q4 March 2017. The board of Thirumalai Chemicals also recommended a 10-for-1 stock split. The announcement was made after trading hours yesterday, 3 May 2018.

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