Key benchmark indices extended initial losses and hit fresh intraday low in morning trade as weakness in Asian stocks weighed on sentiment. At 10:20 IST, the barometer index, the S&P BSE Sensex was down 68.96 points or 0.22% at 31,300.38. The Nifty 50 index was down 23 points or 0.24% at 9,651.55.
The S&P BSE Mid-Cap index fell 0.08%. The S&P BSE Small-Cap index fell 0.01%. The fall in both the indices was lower than the Sensex's decline in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,007 shares fell and 970 shares rose. A total of 89 shares were unchanged.
Telecom stocks gained after reports suggesting that the government is considering extending the tenure for payment of fee for auctioned airwaves and lowering the universal services obligation (USO) levy among other measures to alleviate the financial stress in the debt-laden sector. Bharti Airtel (up 1.03%), Tata Teleservices (Maharashtra) (up 6.98%) Reliance Communications (RCom) (up 0.01%) and Idea Cellular (up 0.18%) gained.
Shares of Bharti Infratel fell 1.54%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cement stocks were mixed. ACC (up 0.23%), Shree Cement (up 028%) and UltraTech Cement (up 0.91%) gained. Ambuja Cements declined 0.27%.
Grasim Industries declined 0.1%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
IDFC Bank rose 3% after the bank refused to comment or deny reports of merger with Shriram group companies. Media reports had suggested that Shriram Transport Finance, Shriram City Union Finance will merge with IDFC Bank; and Shriram Capital's Life, General insurance business will merge with IDFC.
IDFC Bank clarified after market hours yesterday, 6 July 2017, that it keeps evaluating opportunities from time to time and should anything concrete fructify, it will inform the exchanges as appropriate. At this point, there is nothing that can be disclosed. Under the circumstances, it is unable to confirm or deny the news reports. Meanwhile, it cannot comment on the market speculations.
Bharat Forge rose 1.47% after the company announced that its subsidiary, Kalyani Strategic Systems and Israel Aerospace Industries have signed a new memorandum of understanding (MoU) addressed to expand the joint venture that the companies are establishing.
The new MoU covers the establishment of a maintenance center for selected advanced air defence systems at Hyderabad in Telengana. The two companies have also agreed on expanding their joint operations for development, manufacturing and marketing of precise ammunition systems. The announcement was made after market hours yesterday, 6 July 2017.
Overseas, Asian stocks declined after negative close for US stocks overnight as investors become more cautious about the prospects of global central bank tightening.
US stocks closed lower yesterday, 6 July 2017 as investors continued to sell tech firms. A combination of geopolitical jitters and growing signs that global central banks are inching closer to unwinding policies that have helped to support both stocks and government bonds is also weighing on the broader market.
US private-sector employers added a seasonally-adjusted 153,000 jobs during June month, below the forecast. A closely watched US non-farm jobs report for June is due later in the day. The US service sector expanded at a healthy pace in June, according to a closely watched survey released. The Institute for Supply Management's nonmanufacturing index rose to 57.4% in June from 56.9% in May.
US trade deficit fell 2.3% in May. The deficit slipped to $46.5 billion in May from $47.6 billion in April, the Commerce Department said.
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