Trading turned volatile as key benchmark indices sharply pared losses in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was down 20.88 points or 0.06% at 34,991.01. The Nifty 50 index was down 13.80 points or 0.13% at 10,614.70. The Sensex was trading a tad below the psychologically important 35,000 mark. Most IT and pharmaceutical shares declined.
On the macro front, the Nikkei India Services Business Activity Index fell to 49.6 last month from 51.4 in April. A reading below 50 indicates contraction in activity, while a number above it signals expansion. Services activity in the country fell below the 50-point-mark for the first time since February, when the Index reading stood at 47.8.
The indices displayed some volatility in early trade and later slipped into negative terrain in morning trade. Indices hit fresh intraday low in mid-morning trade. Indices sharply pared losses in early afternoon trade.
Broader market declined sharply. Among secondary barometers, the BSE Mid-Cap index was down 0.85%. The BSE Small-Cap index was down 1.78%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 462 shares rose and 1984 shares fell. A total of 108 shares were unchanged.
Most IT stocks declined. Persistent Systems (down 3.45%), Hexaware Technologies (down 3.06%), Oracle Financial Services Software (down 2.07%), Infosys (down 0.85%), MindTree (down 0.84%), TCS (down 0.63%), HCL Technologies (down 0.34%) and Wipro (down 0.12%), edged lower. Tech Mahindra (up 1.25%) and MphasiS (up 1.85%), edged higher.
Most pharmaceutical shares declined. Piramal Enterprises (down 2.84%), Strides Shasun (down 2.48%), IPCA Laboratories (down 2.18%), Divi's Laboratories (down 1.75%), Alkem Laboratories (down 1.58%), Dr Reddy's Laboratories (down 0.95%), Glenmark Pharmaceuticals (down 0.35%), Wockhardt (down 0.29%), Cadila Healthcare (down 0.2%) and Lupin (down 0.14%), edged lower. Sun Pharmaceutical Industries (up 0.04%), GlaxoSmithKline Pharmaceuticals (up 0.27%), Aurobindo Pharma (up 1.53%) and Cipla (up 2.18%), edged higher.
Overseas, Asian markets reversed early losses and were trading higher. US market posted strong gains Monday, led by a rally in the technology and consumer discretionary sectors, as traders appeared to shrug off global trade tensions and focused on a favorable economic backdrop instead.
US factory orders fell by 0.8% in April. The decline was concentrated in commercial aircraft. Orders for nondurable goods rose slightly. The increase in factory orders in March, meanwhile, was raised a tick to 1.7%.
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