Stocks extended fall and hit fresh intraday low in mid-morning trade led by fall in index heavyweights RIL, Infosys and HDFC. At 11:18 IST, the barometer index, the S&P BSE Sensex, was down 99.12 points or 0.28% at 35,288.76. The Nifty 50 index was down 30 points or 0.28% at 10,711.10. Most capital goods stocks rose. Telecom stocks saw mixed trend.
Domestic stocks kickstarted trading for the day on a positive note after BJP leader B.S. Yeddyurppa was sworn in as chief minister of Karnataka. Stocks reversed early gains to sink in negative zone in morning trade.
The S&P BSE Mid-Cap index was up 0.17%. The S&P BSE Small-Cap index was up 0.3%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1193 shares rose and 1010 shares fell. A total of 95 shares were unchanged.
Most capital goods stocks rose. Bharat Heavy Electricals (Bhel) (up 1.39%), BEML (up 0.75%), L&T (up 0.16%), Punj Lloyd (up 1.4%), Siemens (up 0.03%) and Thermax (up 0.43%) rose. ABB India (down 0.26%) and Bharat Electronics (down 0.99%) fell.
Telecom stocks saw mixed trend. Bharti Airtel (up 0.25%), Idea Cellular (up 0.19%) and Reliance Communications (up 9%) rose. MTNL (down 1.16%) and Tata Teleservices (Maharashtra) (down 1.17%) fell.
Shares of Bharti Infratel rose 1.87%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Granules India surged 9.21% after the company said that it received US drug regulator's approval for generic Methylergonovine tablets.The announcement was made before trading hours today, 17 May 2018.
Granules India announced that the US Food and Drug Administration (USFDA) has approved its Abbreviated New Drug Applications (ANDA) for Methylergonovine 0.2 mg tablets. The ANDA was filed by Granules Pharmaceuticals Inc., a wholly-owned subsidiary of Granules India. The approved ANDA is the bioequivalent to the reference listed drug product (RLD), Methergine 0.2 mg. Methylergonovine is a semisynthetic ergot alkaloid used for the prevention and control of postpartum haemorrhage.
On the political front, Bharatiya Janata Party's (BJP's) B.S. Yeddyurppa was today, 17 May 2018 sworn in as chief minister of Karnataka. The swearing-in came after a four-hour, post-midnight Supreme Court hearing on a Congress-JDS petition that sought to quash his candidature. The Supreme Court made it clear that the swearing-in and the government formation would be subject to its final order on the Congress-JDS petition before it. Yeddyurappa still has to prove the BJP's majority in the assembly.
Karnataka delivered a hung Assembly on Tuesday with no party getting a clear majority to form government in the state. While the Bharatiya Janata Party (BJP) emerged as the single-largest party, winning 104 seats, falling marginally short of the 113 seats needed to form a government. The Congress and the Janata Dal Secular (JDS) stood second and third with wins on 78 and 38 seats respectively.
Overseas, most Asian stocks were trading on a mixed note. US stocks rose yesterday, 16 May 2018 with major indexes advancing in a broad rally as investors appeared to shake off fears of rising bond yields, helping equities resume a recent uptrend.
On the economic front, construction on new houses dropped 3.7% in April. The annual rate of new homes being built declined to 1.29 million last month from a revised 1.34 million pace in March that was the strongest since mid-2007..
US factory output rose in April, although new estimates of manufacturing and overall industrial production showed less growth in prior months than initially believed, casting a shadow over the economic outlook. Industrial production rose 0.7% in April, the Federal Reserve said Wednesday. Output rose at a 2.3% rate in the first quarter.
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