Key benchmark indices closed the first trading session of the week with modest losses. The barometer index, the S&P BSE Sensex dropped 178.76 points or 0.57% at 30,959.45, as per the provisional closing data. The Nifty 50 index lost 60.35 points or 0.63% at 9,514.60, as per the provisional closing data. The Sensex provisionally settled below the psychological 31,000 level. Negative cues from European markets spoiled investors' sentiment.
Geopolitical tensions also weighed on market sentiment amid reports suggesting that China today, 27 June 2017 accused Indian troops of crossing the boundary in the Sikkim region and demanded their immediate withdrawal, while asserting that it stopped the Indian pilgrims who enter Tibet via the Himalayan pass of Nathu La for safety reasons in view of the border issue.
Key indices opened higher after a holiday. They later slipped into the negative terrain amid lack of key domestic or global cues to boost investors' spirits. Indices extended slide in afternoon trade as selling pressure intensified amid weakness in European markets. Thereafter, indices languished in negative zone for the remainder of the session.
The Sensex fell 291.13 points or 0.93% at the day's low of 30,847.08 in mid-afternoon trade, its lowest level since 26 May 2017. It rose 156.75 points or 0.5% at the day's high of 31,294.96 in early trade. The Nifty lost 101.50 points or 1.06% at the day's low of 9,473.45 in mid-afternoon trade, its lowest level since 25 May 2017. It rose 40.45 points or 0.42% at the day's high of 9,615.40 in early trade.
The S&P BSE Mid-Cap index declined 0.79%. The S&P BSE Small-Cap index lost 1.57%. The decline in both the indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,887 shares declined and 727 shares rose. A total of 158 shares were unchanged.
The total turnover on BSE amounted to Rs 3591.59 crore, lower than turnover of Rs 7395.04 crore registered during the previous trading session.
Capital goods stocks declined. BEML (down 3.64%), Bharat Electronics (down 2.7%), Siemens (down 2.06%), Suzlon Energy (down 1.09%) and ABB India (down 0.04%) edged lower. Havells India (up 1.9%) and Thermax (up 0.4%) edged higher.
Index heavyweight and engineering and construction major L&T lost 1.34%. The company said its construction division has won orders worth Rs 2552 crore across various business segments. The announcement was made during market hours today, 27 June 2017.
State-run Bharat Heavy Electricals (Bhel) was down 0.48%. The company announced that it secured an order for setting up 15 megawatts (MW) Solar Photovoltaic (SPV) Power Plant on engineering, procurement and construction (EPC) basis, in Gujarat. The order has been placed on Bhel by Gujarat Alkalies and Chemical (GACL) for setting up the SPV Power Plant at Gujarat Solar Park at Charanka in Gujarat. The announcement was made during trading hours today, 27 June 2017.
Software major Infosys declined 1.84%. The company issued a press release regarding its settlement with New York Attorney General. The company said that its agreement concluded the State of New York's investigation relating to the amount of taxes the company paid in 2010-2011 without any criminal or civil charges being filed. While this investigation centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard, Infosys said.
This settlement relates to legal issues already resolved under the 2013 settlement with the US Department of Justice, and was reached by both parties to avoid protracted litigation.
Infosys said it maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving its valued customers across the United States, it added. The announcement was made after market hours on Friday, 23 June 2017.
Overseas, European shares declined as a drop in autos stocks after Germany's Schaeffler cut its profit outlook and disappointment over a failed buyout of Stada spoiled investors sentiment.
The European Central Bank (ECB) chief Mario Draghi gave an upbeat view of the euro zone economy today, 27 June 2017, but still urged the need for monetary policy to become accommodative.
Draghi yesterday, 26 June 2017, defended the ECB's easy monetary policy. Draghi, speaking to university students in Lisbon, reportedly said super low rates create jobs, foster growth and benefit borrowers, ultimately easing inequality.
Asian stocks witnessed mixed trend as investors watched for signals from central bankers' speeches. Federal Reserve Chair Janet Yellen is due to speak in London today, 27 June 2017.
US equities closed mixed yesterday, 26 June 2017, as a rise in the financial sector helped offset losses from large-cap technology stocks.
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