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Market drops on weak global cues

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Key benchmark indices registered losses for third day in a row dragged by and pharma stocks. The barometer index, the S&P Sensex, lost 216.35 points or 0.68% at 31,797.84, as per the provisional closing data. The index lost 70.50 points or 0.71% at 9,908.05, as per the provisional closing data. Weakness in global stocks amid escalating geopolitical tensions between US and North Korea weighed on sentiment on the domestic bourses.

The settled below the psychological 32,000 mark after sliding below that level in opening trade. Domestic stocks saw a gap-down opening on negative global cues. Stocks cut losses in morning trade as select index pivotals were off intraday day lows. Key indices extended fall in mid-morning trade on fresh selling in index pivotals. Stocks languished in the red till afternoon trade. Weakness persisted on the bourses in mid-afternoon trade. Indices extended losses in late trade.

The S&P Mid-Cap index provisionally fell 1.66%. The S&P Small-Cap index provisionally fell 1.88%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,976 shares declined and 604 shares rose. A total of 117 shares were unchanged.

The total turnover on BSE amounted to Rs 3,604.57 crore, lower than the turnover of Rs 7319.29 crore registered during the previous trading session.

Pharma stocks declined sharply. Cadila Healthcare (down 9.54%), Cipla (down 3.5%), Dr Reddy's Laboratories (down 2.84%), Glenmark Pharmaceuticals (down 4.2%), Lupin (down 2.38%), Alkem Laboratories (down 3.65%) (down 5.86%) and Wockhardt (down 1.51%) declined. GlaxoSmithKline Pharmaceuticals (up 0.36%) rose.

Sun Pharmaceutical Industries lost 5.43% after the company's US subsidiary Taro Pharmaceutical Industries yesterday, 8 August 2017, reported weak results for the quarter ended 30 June 2017. Taro Pharmaceutical Industries' net profit fell 50.4% to $54.50 million on 31% decline in net sales to $161.30 million in the quarter ended 30 June 2017 over the quarter ended 30 June 2016.

Meanwhile, Sun Pharmaceutical Industries announced after market hours yesterday, 8 August 2017 that one of its wholly owned subsidiaries has agreed to acquire by way of allotment to it, 2.03 lakh Series A Preferred Stock (equivalent to 15.91% fully diluted equity stake on conversion) of Krystal Biotech Inc., United States of America, a biopharmaceutical company using gene therapy to develop treatments for patients suffering from rare debilitating disorders.

Tata Motors slipped 3.17% ahead of its Q1 results today, 9 August 2017.

of India rose 3.77% after the reported net profit of Rs 87.71 crore in Q1 June 2017, compared with net loss of Rs 741.36 crore in Q1 June 2016. The result was announced during market hours today, 9 August 2017.

Bank of India's total income rose 4.14% to Rs 11106.61 crore in Q1 June 2017 over Q1 June 2016. The bank's provisions and contingencies fell 18.94% to Rs 2245.28 crore in Q1 June 2017 over Q1 June 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 51019.11 crore as on 30 June 2017 as against Rs 52044.52 crore as on 31 March 2017 and Rs 51874.50 crore as on 30 June 2016. The ratio of gross NPAs to gross advances stood at 13.05% as on 30 June 2017 as against 13.22% as on 31 March 2017 and 13.38% as on 30 June 2016. The ratio of net NPAs to net advances stood at 6.7% as on 30 June 2017 as against 6.9% as on 31 March 2017 and 7.78% as on 30 June 2016.

Meanwhile, India's diplomatic efforts to end a seven-week military standoff with China have reportedly hit a roadblock, prompting Chinese state-run media to trumpet rhetoric of "unavoidable countermeasures" on the unmarked border. China has insisted that India unilaterally withdraw its troops from the remote Doklam plateau claimed by both Beijing and Indian ally Bhutan.

Overseas, European and Asian stocks declined as investors took a risk-off approach after the US and North Korea exchanged threats amid escalating tensions between the two nations. North Korea reportedly said it is considering plans for a missile strike on the US Pacific territory of Guam, just hours after President Donald Trump told North Korea that any threat to the United States would be met with "fire and fury".

Meanwhile, China's producer price gains held steady in July on surging commodity prices, as demand stayed resilient and the government's drive to reduce industrial capacity takes hold. China's consumer inflation unexpectedly slowed in July on continued weakness in food prices and cheaper non-food items. China's consumer price index in July increased 1.4% from a year earlier, compared with a 1.5% gain in June.

US stocks finished near lows of the session yesterday, 8 August 2017 reversing earlier gains as an early rally in financial, tech and energy stocks fizzled amid tough talk from President Donald Trump on North Korea. In US economic news, the Labor Department reported on Tuesday that the number of job openings in June vaulted to 6.16 million from 5.7 million in May.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 09 2017. 15:48 IST