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Benchmarks come off day's low

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Key benchmark indices pared losses in mid-morning trade. The Nifty hovered near the 11500 mark. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 114.96 points or 0.37% at 38,575.59. The Nifty 50 index was down 59.85 points or 0.52% at 11,498.75.

The NSE Nifty 50 was trading below its 100-day moving average (DMA) of 11,500. The index breached its 50-day moving average of 11,719 yesterday. The other key level to watch for the Nifty is 11,110.38, which is 200-DMA.

Broader markets outperformed Sensex. The S&P BSE Mid-Cap index was down 0.19%. The S&P BSE Small-Cap index was down 0.06%.

The market breadth was negative. On the BSE, 963 shares rose and 1042 shares fell. A total of 96 shares were unchanged.

Titan Company was down 12.47% to Rs 1096.4 after the company said it witnessed a tough macro-economic environment in April-June quarter with consumption being hit. The company said very high gold prices particularly in June also impacted growth in the jewellery industry. Against this background, the company's growth particularly in the jewellery segment was lower than planned even though the gains in market share were sustained.

In the jewellery business, revenue grew by a muted 13% in Q1 as sharp increase in gold prices dented consumer demand significantly in the month of June, Titan said.

For its watch business, Titan said the division continued with good sales momentum with revenue growth of 19%, partly aided by execution of a large institutional order from Tata Consultancy Services (TCS). Tech-enabled wearable has been the new driver for the division, it added. During the quarter, Titan's watch division launched a new segment of mechanical watches, which takes back time pieces to an era of hand craftsmanship and precision. While, the eyewear division witnessed revenue growth of 13%, aided by the activation during the quarter, Titan added.

A foreign brokerage reportedly downgraded the stock to neutral from outperform with a target price at Rs 1,250, implying flat growth from current levels. The research house further said it would look for a better entry point. It cut earnings estimates by 2%. The brokerage feels stretched valuations and near-term softness cap upside.

Shares of IT companies were trading lower. Mphasis (down 2.18%), MindTree (down2.16%), HCL Technologies (down 1.18%), Hexaware Technologies (down 1.08%), Tech Mahindra (down 0.51%) and Infosys (down 0.32%) declined. Persistent Systems (up 0.6%), Oracle Financial Services Software (up 0.38%) and Wipro (up 0.32%) gained.

IT major Tata Consultancy Services (TCS) declined 2.24%. TCS announces its Q1 June 2019 result today, 9 July 2019.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 68.83, compared with its close of 68.8975 during the previous trading session.

Larsen & Toubro was up 0.72% to Rs 1500.95. The company announced the final scheme of amalgamation between Larsen & Toubro and L&T Shipbuilding, the company's wholly owned subsidiary. The company said that the proposed merger hence can facilitate utilization of the shipyard facility in an optimum manner by leveraging its superior pre-qualification and financial capability and by also achieving better execution through pooling of human capital with diverse skills, talent and vast experience. The company further added that the proposed amalgamation would be beneficial from a revenue generation and cost optimization perspective as Larsen & Toubro would continue to reap the benefits of qualifications/certifications of L&T Shipbuilding post amalgamation.

Goa Carbon was down 1.28% to Rs 316. The company announced that its Bilaspur unit in Chhattisgarh has resumed operations. The company further added that the Kiln has been lit up from 8 July 2019. After preliminary heat up, feeding of raw material will commence and normal production will resume shortly.

Pharma Stocks were in demand. Sun Pharmaceuticals Industries (up 3.28%), Glenmark Pharmaceuticals (up 3.19%), Piramal Enterprises (up 2.65%), Wockhardt (up 1.74%), Cipla (up 1.73%), Cadila Healthcare (up 1.34%), Lupin (up 1.24%) and Aurobindo Pharma (up 0.06%) advanced. Alkem Laboratories (down 1.38%), GlaxoSmithKline Pharmaceuticals (down 1.21%), Dr Reddy's Laboratories (down 0.38%), IPCA Laboratories (down 0.14%) and Divi's Laboratories (down 0.03%) edged lower.

Overseas, Asian markets were trading lower Tuesday after their US counterparts slipped overnight.

US stocks dropped Monday as investors scaled back expectations for interest-rate cuts following last week's strong June jobs report.

The key testimony from Federal Reserve Chairman Jerome Powell this week will be closely watched, as investors assess prospects for monetary easing following some conflicting signals on the US economy. Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the US economy on Wednesday (the House of Representatives) and Thursday (the Senate).

In Europe, the UK Conservative Party members start voting to choose Theresa May's successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week, including a televised debate on July 9.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 09 2019. 11:24 IST