Cement, IT stocks decline

Key benchmark indices continued to trade with small losses as weakness in most Asian stocks dampened sentiment. At 11:20 IST, the barometer index, the S&P BSE Sensex fell 72.96 points or 0.23% at 31,573.50. The Nifty 50 shed 18.05 points or 0.18% at 9,866.35.

After opening with small gains, indices soon slipped into the red and traded with small losses later during the session.

The S&P BSE Mid-Cap index rose 0.01%. The S&P BSE Small-Cap index gained 0.36%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,267 shares rose and 860 shares fell. A total of 107 shares were unchanged.

 

Most cement stocks dropped. ACC (down 0.49%), Shree Cement (down 0.68%), Ambuja Cements (down 0.11%), and UltraTech Cement (down 0.31%) declined.

Grasim Industries rose 0.66%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Most IT stocks declined. HCL Technologies (down 0.99%), TCS (down 0.63%), and Oracle Financial Services Software (down 0.87%) edged lower. Tech Mahindra rose 0.51%.

Infosys declined 1.05% after the company clarified with respect to news article titled "LIC to Seek Briefing on Infy Strategy" that there is no meeting scheduled with LIC to discuss any of the matters. The clarification was issued during market hours today, 31 August 2017. LIC holds 7.03% stake in the firm as on 30 June 2017.

Wipro rose 1.44% to Rs 295.75 after the company fixed 15 September 2017 as the record date for the proposed share buyback. The announcement was made after market hours yesterday, 30 August 2017. The company's board on 20 July 2017, approved a buyback proposal of up to 34.37 crore shares (representing 7.06% of total paid-up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer at Rs 320 per equity share for an aggregate amount not exceeding Rs 11000 crore. Promoters have indicated their intention to participate in the proposed buyback.

Ador Welding lost 3.38% after the company reported net loss of Rs 0.07 crore in Q1 June 2017 as compared with net profit of Rs 1.19 crore in Q1 June 2016. The announcement was made after market hours yesterday, 30 August 2017. Total revenue rose 10.76% to Rs 97.08 crore in Q1 June 2017 over Q1 June 2016.

Overseas, most Asian stocks edged lower amid volatility. An official gauge of China's factory activity rose in August, government data showed. China's official manufacturing purchasing managers' index rebounded to 51.7 from July's 51.4. The index has now stayed above the 50 mark, which separates an expansion of activity from a contraction, for 13 months.

China's official nonmanufacturing purchasing-managers' index, a measure of activity outside the nation's factory gates, fell for a second straight month to 53.4 in August from 54.5 in July, the National Bureau of Statistics said.

Japan's industrial output fell more than expected in July. Industrial output fell 0.8% in July from the previous month, dragged down by production of semiconductor production equipment, turbines and power generators, preliminary data from the Ministry of Economy, Trade and Industry showed.

US stocks climbed yesterday, 30 August 2017, after the Commerce Department said the economy grew faster than expected in the second quarter. President Donald Trump also made a speech calling on Congress to act to advance tax reform, a proposal favoured by many businesses. The Commerce Department said the US economy grew at a 3% annual rate over the three months to the end of June, up from an earlier 2.6% estimate. The revision means that growth for the quarter was at the fastest rate since the first quarter of 2015.

Private-sector hiring skyrocketed in August, according to data released. Employers added a seasonally adjusted 237,000 jobs during the month, payroll processor ADP said. That was a big gain from the 178,000 jobs ADP reported in July, and which it revised up to 201,000.

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