Key indices extended losses and hit fresh intraday low in mid-morning trade. Sentiment was affected after Moody's cut India's credit ratings outlook to negative from stable, citing the government's struggle to lift economic growth and narrow the budget deficit.
The Nifty traded above 11,950 level. At 11:31 IST, the barometer index, the S&P BSE Sensex, was down 155.39 points or 0.38% at 40,498.35. The Nifty 50 index was down 51.85 points or 0.43% at 11,960.20.
In broader market, the S&P BSE Mid-Cap index was down 0.09%. The S&P BSE Small-Cap index was up 0.06%.
The market breadth was negative. On the BSE, 991 shares rose and 1072 shares fell. A total of 141 shares were unchanged. In Nifty 50 index, 15 stocks advanced while 35 stocks declined.
The Nifty Pharma index was down 1.2% at 7,870.45, snapping its 2-day winning streak.
Sun Pharmaceuticals (down 2.77%), Glenmark Pharmaceuticals (down 1.48%), Cipla (down 1.47%), Aurobindo Pharma (down 0.88%), Dr Reddy's Laboratories (down 0.86%), Lupin (down 0.7%), GlaxoSmithKline Pharmaceuticals (down 0.36%), Divi's Laboratories (down 0.33%) and Piramal Enterprises (down 0.2%) were top losers in Pharma segment.
Wockhardt tumbled 3.59% lower to Rs 290. The company reported a consolidated net loss of Rs 94.24 crore on a net loss in Q2 September 2019, higher than net loss of Rs 30.84 crore in Q2 September 2018. Net sales declined 28.7% to Rs 802.18 crore on YoY basis. The company announced its Q2 2019 earnings after market hours yesterday.
Stocks in spotlight:
Realty major DLF jumped 6.16% to Rs 204.30 after the real estate company reported 140% rise in consolidated net profit to Rs 414.72 crore on 11.7% decline in net sales to Rs 1331.19 crore in Q2 September 2019 over Q2 September 2018.
Further, DLF was included in the MSCI India Domestic Index. The changes will be implemented as of the close of 26 November 2019.
Avanti Feeds was up 2.29% at Rs 536.1, rising for the third straight session. The stock has surged 16.08% in three trading sessions from its previous closing low of Rs 461 on 5 November 2019. The stock hit its 52-week high of Rs 547 in intraday trade today.
Avanti Feeds announced a stellar Q2 result on 19 October 2019. On consolidated basis, company's net profit rose 155.8% to Rs 118.70 crore on a 41.1% rise in net sales to Rs 1064.30 crore in Q2 2019 over Q2 2018.
United Breweries were trading 1.48% higher at Rs 1254.40. On consolidated basis, company's net profit was down 29.6% to Rs 114.85 crore on a 3.5% increase in net sales to Rs 1579.55 crore in Q2 September 2019 over Q2 September 2018.
Auto ancillary firm, Gabriel India was down 2.63%. The company reported a 36.1% drop in standalone profit to Rs 18.49 crore in Q2 September 2019 as against Q2 September 2018. Net sales also dropped 12.7% to Rs 472.67 crore on YoY basis.
Credit rating agency Moody's lowered nation's outlook to negative from stable, while retaining the issuer rating at Baa2. The rating agency said its decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses, leading to a gradual rise in the debt burden from already high levels. Moody's cited a growing debt burden and the government's struggle to narrow the budget deficit.
Finance Minister Nirmala Sitharaman on Thursday chaired a meeting with members of the Financial Stability and Development Council (FSDC). The FSDC is an apex-level body constituted, with an aim to strengthen and institutionalise the mechanism of maintaining financial stability and financial sector development among others, by the government of India with the finance minister as its head.
The body also includes the Reserve Bank of India (RBI) governor and chairpersons of the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) as its members along with finance ministry officials. The last meeting of the FSDC was held on June 19, in which the global and domestic economic situation and financial stability issues including, inter-alia, those concerning banking and NBFCs were reviewed among others.
Most Asian markets were trading lower as investors digested recent developments on the U.S.-China trade front.
China's exports and imports declined less than expected in October, the media reported citing data from the country's customs.
In US, the Dow and S&P 500 notched record closing highs on Thursday as the latest signs of progress in U.S.-China trade relations relieved investors, but a report raising fresh worries about the outlook for a deal limited the day's gains.
U.S.-China trade sentiment got a boost on Thursday, as Gao Feng, a spokesperson for China's Commerce Ministry, said both sides had agreed to simultaneously cancel some existing tariffs on one another's goods, according to the country's state broadcaster. The ministry spokesperson said both sides were closer to a so-called phase one trade agreement following constructive negotiations over the past two weeks.
A U.S. official also said both sides agreed to the tariffs rollback, according to Reuters. Still, the outlet also reported the plan faces fierce internal opposition in the White House.
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