Sensex, Nifty drop on weak global stocks

Key benchmark indices dropped sharply on weak global stocks. The barometer index, the S&P BSE Sensex, lost 298.77 points or 0.84% at 35,191.27, as per the provisional closing data. The Nifty 50 index lost 97.75 points or 0.91% at 10,671.40, as per the provisional closing data. Today's slide was led by index heavyweights ICICI Bank, L&T and Reliance Industries. Domestic stocks were weighed down by escalating global trade tension between the world's biggest economic powers.

Domestic stocks opened on a flat note. Key benchmark indices nudged higher in morning trade. Volatility struck bourses in mid-morning trade as the key benchmark indices erased entire intraday gains and were trading a tad lower. Key benchmark indices extended slide as the day's trading session progressed. A selling frenzy in late trade pulled indices to intraday low in late trade.

Broader market tumbled. The S&P BSE Mid-Cap index fell 1.56%. The S&P BSE Small-Cap index fell 2.1%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was extremely weak. On the BSE, 490 shares rose and 2188 shares fell. A total of 117 shares were unchanged.

Engineering and construction major L&T dropped 2.88% to Rs 1,233.

Private sector banking major ICICI Bank lost 2.86% to Rs 279.75.

Index heavyweight Reliance Industries declined 1.5% to Rs 964.

HCL Technologies rose 1.08% after the company said it signed a definitive agreement to acquire Germany-based IT and engineering services provider, H&D International Group. The acquisition is part of HCL's long-term growth plan in Germany. This landmark deal sees HCL attain significant in-country front office and delivery capabilities and will further enhance the company's domain expertise in the global automotive sector, HCL Technologies said in a statement. The announcement was made during trading hours today, 27 June 2018.

H&D's existing delivery center in Gifhorn, Germany, will become part of HCL's global delivery footprint and will focus on IT and engineering services both in Germany and globally.

Jubilant Life Sciences rose 4.49% after the company said its board approved raising upto Rs 350 crore by issuing redeemable non-convertible debentures on private placement basis. The proposed issue has been rated AA Stable by CRISIL as compared to AA- Stable for earlier NCD issue of Rs 495 crore by India Ratings. The proceeds would be mainly utilised for repayment of the existing debt and to reduce the overall cost of borrowing. The announcement was made during trading hours today, 27 June 2018.

Overseas, European markets were trading lower, while oil prices climbed after the US moved to pressure allies to stop buying Iranian crude.

China led Asian markets lower on Wednesday as jitters over trade conflicts between the world's major economies lingered. US stocks rose yesterday, 26 June 2018 as a rally in American crude overshadowed lingering concerns about the impact of heightened trade tensions.

Investors are worried that trade tensions between the US and major trading partners such as China and the European Union could develop into a big drag on the global economy.

On the economic data front, a read on consumer confidence fell to 126.4 in June from a revised 128.8 in May, according to the Conference Board.

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