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Broad market depicts weakness

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Volatility ruled the roost in mid-morning trade as the key benchmark indices cut losses soon after extending intraday slide to hit fresh intraday low. At 11:25 IST, the barometer index, the S&P Sensex, was down 112.75 points or 0.37% at 30,546.02. The 50 index was down 57 points or 0.6% at 9,468.75. Weak global stocks played the spoilsport.

Today's slide was led by index heavyweights ITC, L&T and Reliance Industries (RIL). Capital goods stocks edged lower. Telecom stocks fell.

Key benchmark indices saw a gap-down opening following weak global cues as concerns over President Donald Trump's administration spooked investors. Stocks continued to trade with weakness in morning trade.

The S&P Mid-Cap index was down 1.2%. The S&P Small-Cap index was down 1.06%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were close to three losers against every gainer on BSE. 1,747 shares declined and 595 shares rose. A total of 129 shares were unchanged.

Overseas, Asian stocks were trading lower as fears over the fallout from turmoil in Washington prompted investors to unload risky assets such as equities. In US, the Nasdaq yesterday, 17 May 2017 saw its worst one-day decline since the day after U.K.'s vote to exit from the European Union rattled markets, as turmoil in Washington cast doubt on President Donald Trump's pro-growth agenda that had helped to drive stocks to records.

Political uncertainty sent the S&P 500 index down 43.64 points, or 1.8%, to 2,357.03. The Dow sank 372.82 points, or 1.8%, to finish at 20,606.93. The Nasdaq Composite Index dropped 158.63 points, or 2.6%, to end at 6,011.24.

The administration is facing scrutiny about whether the president asked the former head of the FBI to drop an investigation, as well as questions about his handling of secret intelligence. The Justice Department named a special counsel to oversee the FBI's investigation of Russia's efforts to influence the 2016 election.

Back home, Capital goods stocks edged lower. L&T (down 1.87%), Punj Lloyd (down 2.17%), ABB India (down 1.79%), Bharat Heavy Electricals (Bhel) (down 2.4%), BEML (down 1.8%), Bharat Electronics (down 2.19%), Siemens (down 0.56%) and Thermax (down 0.91%) declined.

Telecom stocks fell. Bharti Airtel (down 0.05%), MTNL (down 2.52%), Tata Teleservices (Maharashtra) (down 1.94%) and Reliance Communications (down 1.56%) declined. Idea Cellular (up 0.46%) rose.

Shares of Bharti Infratel fell 1.4%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

United Breweries lost 3.46% after net profit fell 87.1% to Rs 6.73 crore on 8.2% decline in net sales to Rs 1112.70 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

United Breweries (UBL)'s net profit fell 23% to Rs 229.33 crore on 2.2% decline in net sales to Rs 4734.12 crore in the year ended March 2017 over the year ended March 2016.

For the full year ended March 2017, the beer industry saw lower volume as a result of steep duty increases in multiple states, the impact of demonetization and the impact of the anticipated cancellation of liquor licenses within 500 meters of national and state highways from 1 April 2017. UBL's volume declined 2.5% which compared with the industry fall of 5%. UBL's net sales revenue declined in line with volume.

Sicagen India rose 12.24% after consolidated net profit jumped 120.44% to Rs 6.04 crore on 29.60% rise in net sales to Rs 196.69 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

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

First Published: Thu, May 18 2017. 11:33 IST