Sensex hits almost 5-week low

Key benchmark indices hit fresh intraday low in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex was down 103.73 points or 0.34% at 30,854.52. The Nifty 50 index declined 17.60 points or 0.19% at 9,493.80. The Sensex failed to hold the psychological 31,000 level which it briefly surpassed in early trade. Negative opening in European stocks and ongoing weakness in Asian stocks spoiled investors sentiment.

The Sensex hit its lowest intraday level in almost five weeks in afternoon trade. The Sensex fell 123.57 points, or 0.40% at the day's low of 30,834.68 in afternoon trade, its lowest intraday level since 26 May 2017. The index rose 42.23 points, or 0.14% at the day's high of 31,000.48 in morning trade. The Nifty fell 31.60 points, or 0.33% at the day's low of 9,479.80 in afternoon trade. The index rose 11.10 points, or 0.12% at the day's high of 9,522.50 in morning trade.

Market sentiment was lackluster amid weakness in Asian stocks and lower closing on the Wall Street as policy uncertainty heightened in US with the Senate Republicans forced to delay vote on a crucial healthcare bill due to lack of support.

The S&P BSE Mid-Cap index rose 0.17%. The S&P BSE Small-Cap index advanced 0.12%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,239 shares rose and 1,192 shares declined. A total of 141 shares were unchanged.

Metal shares were in demand. National Aluminium Company (up 4.01%), NMDC (up 2.21%), Tata Steel (up 1.98%), Vedanta (up 1.46%), Hindustan Zinc (up 1.33%), JSW Steel (up 1.16%), Steel Authority of India (up 1.06%), Hindustan Copper (up 0.88%), Jindal Steel & Power (up 0.81%) and Hindalco Industries (up 0.56%), edged higher. Bhushan Steel fell 2.71%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.30% at $2.6695 per pound on the COMEX.

Pharmaceutical shares were mixed. Strides Shasun (up 1.27%), Cadila Healthcare (up 0.38%), Sun Pharmaceutical Industries (up 0.24%), Glenmark Pharmaceuticals (up 0.17%), Alkem Laboratories (up 0.13%), Piramal Enterprises (up 0.13%), Cipla (up 0.08%), IPCA Laboratories (up 0.04%) and Wockhardt (up 0.03%), edged higher. Divi's Laboratories (down 0.13%), Lupin (down 0.21%), Dr Reddy's Laboratories (down 0.65%), Aurobindo Pharma (down 1%) and GlaxoSmithKline Pharmaceuticals (down 1.04%), edged lower.

Gujarat Mineral Development Corporation (GMDC) jumped 3.90% to Rs 142.65, with the stock recovering on bargain hunting after recent slide. Shares of GMDC had declined 11.87% in the preceding five trading sessions to settle at Rs 137.30 yesterday, 27 June 2017, from its closing price of Rs 155.80 on 19 June 2017.

Overseas, European stocks opened lower today, 28 June 2017, as markets digested the previous session's comments by European Central Bank President Mario Draghi and eyed additional remarks by the central bank head. European equities weakened after Draghi said factors weighing on inflation in the euro area were mainly temporary, adding that the bank could look through them. Draghi also said the ECB sees growth that is above trend and well distributed across the euro area, but reiterated that a considerable degree of stimulus is still needed in the euro zone, and that the ECB must be prudent in how it unwinds it.

Asian stocks edged lower after the softer lead from Wall Street, with the vote on a bill to replace Obamacare in the US delayed.

US equities closed lower yesterday, 27 June 2017 amid losses in large-cap technology stocks, while a Senate vote delay raised heightened policy uncertainty.

In US, the Republican Party's seven-year crusade to repeal the Affordable Care Act (ACA) is on the verge of collapse, after Senate leaders were forced to delay a vote on a healthcare bill. Republicans, who hold the Senate 52-48, must find at least 50 votes to pass the bill, under a budget rules process known as reconciliation that would require only a simple majority.

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