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Sensex hovering below 32,000

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Key benchmark indices hovered in negative zone in early afternoon trade as index pivotals remained gripped under selling pressure. At 12:22 IST, the barometer index, the S&P Sensex, was down 122.74 points or 0.38% at 31,891.45. The index was down 36.55 points or 0.37% at 9,942. Rising geopolitical concerns after the US and North Korea exchanged threats also weighed on the bourses. Industries dropped sharply after Taro's dismal show in June quarter.

The was trading below the psychological 32,000 mark after sliding below that level in opening trade. Domestic stocks saw gap-down opening on negative global cues. Stocks cut losses in morning trade as select index pivotals were off intraday day lows. Key benchmark indices extended fall in mid-morning trade on fresh selling in index pivotals after a short lived recovery in morning trade.

The S&P Mid-Cap index was down 0.91%. The S&P Small-Cap index was down 0.57%. 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 two losers against every gainer on BSE. 1,656 shares declined and 694 shares rose. A total of 106 shares were unchanged.

Industries lost 3.19% 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, 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.

Auto stocks declined. Bajaj Auto (down 2.42%), Hero MotoCorp (down 1.17%) and TVS Motor Company (down 0.39%), Maruti Suzuki India (down 0.16%), Mahindra & Mahindra (M&M) (down 0.12%), Escorts (down 0.46%) and Ashok Leyland (down 0.89%) fell.

Tata Motors dropped 2.3% ahead of its Q1 results today, 9 August 2017.

Eicher Motors rose 0.22% ahead of its Q1 results today, 9 August 2017.

Realty stocks saw mixed trend. DLF (up 1.37%), Unitech (up 0.87%), Prestige Estates Projects (up 3.4%), Oberoi Realty (up 0.34%) rose. Indiabulls Real Estate (down 0.22%), D B Realty (down 0.39%), Sobha (down 0.26%), Godrej Properties (down 0.62%) fell.

Housing Development & Infrastructure rose 1.51% to Rs 57.20 on bargain hutning. Shares of Housing Development & Infrastructure (HDIL) has fallen sharply in past four trading sessions from its close of Rs 85.85 on 2 August 2017. On 3 August 2017, HDIL announced that the National Company Law Tribunal (NCLT) admitted insolvency application against HDIL's wholly-owned subsidiary, Guruashish Construction, filed by the Union Bank of India. Guruashish Construction has defaulted on Rs 250 crore repayment to Union Bank of India earlier this year which led the bank to file a bankruptcy plea against the company.

The Bombay Stock Exchange (BSE) sought clarification from Housing Development and Infrastructure (HDIL) today, 9 August 2017, with reference to a news flash citing that HDIL failed to repay Rs 144 crore loan to Central Bank of India. Central Bank of India has seized Kurla property. HDIL is doing one-time settlement with banks for subsidiary debt. Some account of the company has been attached by the Income Tax Department. HDIL is yet to clarify on the news report.

Mangalam Cement lost 2.25% after net profit fell 46.4% to Rs 12.11 crore on 12.8% increase in net sales to Rs 254.03 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 8 August 2017.

Overseas, Asian stocks were trading lower as investors took a risk-off approach after the US and North Korea exchanged threats amid escalating tensions between the two nations. 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.

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. 12:30 IST