Shares extend intraday decline

Key indices extended losses and hit fresh intraday low in mid-afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 179.17 points or 0.51% at 35,048.09. The Nifty 50 index was down 62.20 points or 0.58% at 10,634.

After opening higher, indices declined in morning trade. Indices recovered and hovered near flat line in early afternoon trade. Shares hit fresh intraday low in mid-afternoon trade as selling intensified.

The Sensex rose 328.33 points, or 0.93% at the day's high of 35,555.59 in early trade. The index fell 221.23 points, or 0.63% at the day's low of 35,006.03 in mid-afternoon trade. The Nifty rose 74.10 points, or 0.69% at the day's high of 10,770.30 in early trade. The index fell 71.80 points, or 0.67% at the day's low of 10,624.40 in mid-afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.89%. The BSE Small-Cap index was down 1.95%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 551 shares rose and 2,065 shares fell. A total of 154 shares were unchanged.

Most realty shares declined. Peninsula Land (down 5.06%), Housing Development and Infrastructure (HDIL) (down 4.41%), Prestige Estates Projects (down 4.4%), Indiabulls Real Estate (down 3.74%), Phoenix Mills (down 3.72%), D B Realty (down 3.21%), Unitech (down 2.49%), DLF (down 2.32%), Sobha (down 2.3%), Godrej Properties (down 1.41%), Parsvnath Developers (down 1.1%) and Oberoi Realty (down 0.31%), edged lower. Omaxe (up 0.22%), Mahindra Lifespace Developers (up 0.38%), Sunteck Realty (up 0.52%) and Anant Raj (up 8.64%), edged higher.

Most auto stocks declined. TVS Motor Company (down 3.81%), Escorts (down 3.36%), Ashok Leyland (down 1.76%), Maruti Suzuki India (down 0.48%), Eicher Motors (down 0.4%) and Bajaj Auto (down 0.27%), edged lower. Tata Motors (up 0.80%) and Mahindra & Mahindra (up 1.48%), edged higher.

Two-wheelers major Hero MotoCorp was down 0.13%. The company's sales rose 11% to 7.06 lakh units in May 2018 over May 2017. Sustaining strong sales momentum, Hero MotoCorp has continued to further consolidate its domestic market leadership with an all-time high sales for the month of May. The announcement was made after market hours on Friday, 1 June 2018.

Overseas, European stocks were trading higher as optimism for the world's largest economy helped investors put concerns over protectionism to one side. Asian stocks were trading higher, tracking gains seen on Wall Street on Friday, 1 June 2018. US stock-market indices jumped on Friday, following a solid jobs data for May, while shrugging off concerns over Italian politics and trade wars.

The US labor market remains strong with 223,000 new jobs created in May, while the unemployment rate fell to an 18-year low of 3.8%. Wage growth was modest, with the yearly rate of pay rising to 2.7% from 2.6%. Receding fears about political upheaval in Italy also helped boost sentiment.

Despite the positive mood, trade concerns continued to linger after US-China trade talks yielded no major breakthroughs. China threatened that previous trade agreements negotiated by the countries will not take effect if the Trump administration goes ahead with a planned tariff increase.

US allies also took aim during a G-7 finance leaders meeting at metals tariffs imposed by the Trump administration.

On the US data front, the Institute for Supply Management said Friday that its manufacturing index rose to 58.7%, up 1.4% from April and a two-month high.

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