Key barometers declined and hit fresh intraday low in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 81.26 points or 0.23% at 35,564.14. The Nifty 50 index was down 25.55 points or 0.24% at 10,744.35. Investors were cautious ahead of a deadline when tariffs from the US and China are due to be enforced.
Trading was volatile. The indices hit fresh intraday high in early trade. After some range bound trading, the indices declined and hit fresh intraday low in mid-morning trade. The Sensex rose 102.86 points, or 0.29% at the day's high of 35,748.26 in early trade. The index fell 122.52 points, or 0.34% at the day's low of 35,522.88 in mid-morning trade. The Nifty rose 16.15 points, or 0.15% at the day's high of 10,786.05 in early trade. The index fell 43.65 points, or 0.41% at the day's low of 10,726.25 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.43%, underperforming the Sensex. The BSE Small-Cap index was down 0.18%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 956 shares rose and 1169 shares fell. A total of 118 shares were unchanged.
Reliance Industries (RIL) was up 1.01%. Reliance Brands, a subsidiary of the company, has purchased 12.5% equity stake in Future101 Design (Future101) for Rs 9.50 crore. The acquisition of minority stake is in the nature of strategic investment. Future101, incorporated in July 2013 is engaged in manufacturing, distribution and sale of luxury apparels, etc. in India. Future101 belongs to a similar industry as Reliance Brands Limited. RIL expects growth in this sector and value creation from this investment. Future101 reported annual turnover of Rs 22.18 crore, Rs 20.85 crore and Rs 17.11 crore in FY 2017-18, FY 2016-17 and FY 2015-16, respectively. No regulatory approvals were required for the said acquisition of shares. The investment does not fall within related party transaction and none of RIL's promoter/promoter group/group companies have interest in Future101. The announcement was made during trading hours today, 5 July 2018.
Meanwhile, RIL holds its 41st annual general meeting (AGM) today, 5 July 2018.
Tata Motors was down 2.81%. Group CFO, PB Balaji, issued a statement during trading hours today, 5 July 2018, that Jaguar Land Rover (JLR) and Tata Motors have always maintained that the uncertainties from Brexit are avoidable and the business seeks clarity to ensure that industry takes timely and right decisions to manage the transition. Additionally, JLR needs free and full access to the single market beyond transition to remain competitive which is in the best long term interests of the United Kingdom.
The recent statement from JLR only reaffirms this position that a Brexit which increases bureaucracy, reduces productivity and competitiveness of the UK Industry is in no-one's interest. As this worst case Brexit scenario is just one of the many possibilities, the company's plans which were shared at the JLR analyst meet in the UK did not factor them and the firm continues to stand by what was shared.
In the meanwhile, JLR will continue to work with the government to secure the right free trade deal for the country, economy and industry.
IT stocks declined. Infosys (down 3.92%), Hexaware Technologies (down 2.18%), MindTree (down 1.7%), Persistent Systems (down 0.92%), Tech Mahindra (down 0.62%), Oracle Financial Services Software (down 0.52%), MphasiS (down 0.33%), Wipro (down 0.25%) and TCS (down 0.09%), edged lower. HCL Technologies was up 0.04%.
Pharmaceutical shares were mixed. Piramal Enterprises (down 1.56%), Alkem Laboratories (down 0.93%), Sun Pharmaceutical Industries (down 0.87%), Glenmark Pharmaceuticals (down 0.63%), Wockhardt (down 0.41%), GlaxoSmithKline Pharmaceuticals (down 0.38%) and Divi's Laboratories (down 0.35%), edged lower. Cadila Healthcare (up 0.28%), Lupin (up 0.56%), Aurobindo Pharma (up 0.75%), Cipla (up 0.85%), Dr Reddy's Laboratories (up 1.35%), Strides Shasun (up 1.55%) and IPCA Laboratories (up 1.82%), edged higher.
Overseas, Asian markets were trading lower as investors searched for direction ahead of a deadline when tariffs from the US and China are due to be implemented. A looming 6 July 2018 deadline is set to see the US impose a 25% tariff on $34 billion worth of Chinese goods from more than 800 product categories. China has also announced that it will retaliate with duties on the same value of US products. US stock market was shut on Wednesday for the Independence Day holiday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
