Telecom stocks edge lower

Key benchmark indices hovered near the flat line in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was down 2.43 points or 0.01% at 31,156.97. The Nifty 50 index declined 4.80 points or 0.05% at 9,619.75.

The S&P BSE Mid-Cap index rose 0.67%. The S&P BSE Small-Cap index advanced 0.89%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,308 shares rose and 1,010 shares declined. A total of 120 shares were unchanged.

Telecom stocks declined. Reliance Communications (down 8.48%), Bharti Infratel (down 2.29%) and Idea Cellular (down 0.32%) edged lower. Bharti Airtel (up 0.61%) edged higher.

IT stocks were mixed. TCS (up 0.42%), Wipro (up 0.07%) and Tech Mahindra (up 0.04%) edged higher. Oracle Financial Services Software (down 0.92%), Infosys (down 0.8%), HCL Technologies (down 0.19%) edged lower.

Aurobindo Pharma was down 1.7%. The company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture Atomoxetine capsules, in seven strengths. Atomoxetine capsules are the AB rated generic equivalent of Eli Lilly and Company's Strattera capsules.

The product will be launched immediately. These are indicated for the treatment of Attention-Deficit/Hyperactivity Disorder (ADHD). The approved product has an estimated market size of $1.1 billion for the twelve months ended March 2017, according to IMS. The announcement was made during market hours today, 31 May 2017.

Vedanta fell 1.98% at Rs 240.05. The company announced that its duly authorized committee of directors at a meeting held on 31 May 2017, approved offering for subscription, on a private placement basis, non-convertible debentures (NCDs) aggregating up to Rs 350 crore. The announcement was made during market hours today, 31 May 2017.

On the macro front, a press release dated 31 May 2017 issued by the India Meteorological Department (IMD) stated that conditions are favourable for further advance of southwest monsoon into remaining parts of south Arabian Sea, Lakshadweep area and Kerala, some parts of central Arabian Sea, coastal & south interior Karnataka, some more parts of Tamilnadu, southwest, west central & east central & east central Bay of Bengal, most parts of northeast Bay of Bengal and some more parts of northeastern states during next 2-3 days.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Overseas, Asian stocks were mixed after key markets resumed trading after holidays. China markets which re-opened after a long holiday were in green. US equities closed lower yesterday, 30 May 2017 as investors digested key economic data, but a rise in tech stocks helped cap losses.

In Europe, poll results showed that UK Prime Minister Theresa May's Conservative Party could potentially lose its majority in parliament.

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