Weak market breadth

Key benchmark indices extended intraday losses in mid-afternoon trade amid weak global cues. At 14:15 IST, the barometer index, the S&P BSE Sensex lost 153.86 points or 0.49% at 31,370.82. The Nifty 50 index fell 48.55 points or 0.49% at 9,788.85. Market sentiment was weak amid lackluster trading in global bourses and weaker closing on the Wall Street last Friday. Sharp fall in software pivotal Infosys also weighed on key indices.

Key indices opened the session higher and traded with small gains till morning trade. Later, the indices hovered near the flat line in mid-morning trade. Key benchmarks slipped into the negative zone in early afternoon trade and extended intraday losses in mid-afternoon trade.

The Sensex lost 189.10 points or 0.59% at the day's low of 31,335.58 in mid-afternoon trade, its lowest level since 14 August 2017. It rose 117.13 points or 0.37% at the day's high of 31,641.81 in morning trade. The Nifty lost 53.80 points or 0.54% at the day's low of 9,783.60 in mid-afternoon trade, its lowest level since 14 August 2017. It rose 46.95 points or 0.47% at the day's high of 9,884.35 in morning trade, its highest level since 17 August 2017.

Among secondary indices, the S&P BSE Mid-Cap index lost 0.88%. The decline in this index was higher than the Sensex's fall in percentage terms. The S&P BSE Small-Cap index fell 0.49%. The decline in this index matched the Sensex's fall in percentage terms.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,500 shares declined and 980 shares rose. A total of 154 shares were unchanged.

Capital goods stocks declined. Bharat Heavy Electricals (down 2.16%), BEML (down 1.13%), Siemens (down 1.04%), Thermax (down 0.46%), Bharat Electronics (down 0.19%), ABB India (down 0.07%) and L&T (down 0.06%) edged lower.

Aviation stocks tumbled. Jet Airways (India) (down 4.06%), SpiceJet (down 1.23%) and InterGlobe Aviation (down 0.49%) declined.

Tata Power Company was down 0.12% at Rs 80.20. The company said it has installed its first electric vehicle (EV) charging station at Tata Power Receiving Station at Vikhroli, Mumbai. The company plans to set up charging stations at various locations in Mumbai and is already in discussions with various stakeholders. The announcement was made during market hours today, 21 August 2017.

Overseas, European stocks edged lower as investors remained unconvinced about President Donald Trump's ability to impose his ambitious economic agenda.

Asian stocks witnessed a mixed trend amid geopolitical concerns as US-South Korea military drills begin. As per reports, joint US-South Korea military exercises take place from 21 August to 31 August 2017. This exercise comes on the back of a ramp up in geopolitical tensions earlier this month after a heated exchange of rhetoric between President Donald Trump and Pyongyang.

In economic news, Japan's all industry activity recovered in June, data from the Ministry of Economy, Trade and Industry showed today, 21 August 2017. The all industry activity index rose 0.4% month-on-month in June, reversing a 0.8% fall in May.

US equities closed off their session lows on Friday, 18 August 2017 after Steve Bannon, one of President Donald Trump's top advisors, left the administration. Reports suggested that tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House.

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