Key benchmark indices witnessed heavy selling in mid-afternoon session, triggered by dismal global cues. The Nifty cracked below 11,550 mark. At 14:17 IST, the barometer index, the S&P BSE Sensex, was down 904.64 points or 2.29% at 38,608.54. The Nifty 50 index was down 284.15 points or 2.41% at 11,527.
Selling was broad based. The S&P BSE Mid-Cap index was down 2.24%. The S&P BSE Small-Cap index was down 2.7%.
The market breadth was tilted towards the sellers. On the BSE, 430 shares rose and 1983 shares fell. A total of 131 shares were unchanged.
Goa Carbon was down 7.71% to Rs 313.1 after the company announced a net a loss of Rs 5.01 crore compared to a net profit of Rs 7.44 crore in Q1 June 2019 over Q1 June 2018.
FMCG stocks were trading lower. Godrej Consumer Products (down 3.48%), Hindustan Unilever (down 2.26%), Marico (down 1.73%), Dabur India (down 1.65%), Nestle India (down 1.39%), GlaxoSmithkline Consumer Healthcare (down 1.29%), Britannia Industires (down 0.97%) and Colgate Palmolive (India) (down 0.76%) declined. Procter & Gamble Hygiene & Health Care (up 0.27%), Bajaj Consumer Care (up 0.25%) and Jyothy Laboratories (up 0.15%) edged higher.
Tata Global Beverages was down 1.24% to Rs 263.65. CARE Ratings have reaffirmed their rating to CARE A1+ on company's Commercial Paper worth Rs 715 crore.
JSW Energy was down 2.03% to Rs 70. CARE Ratings has reaffirmed company's long term ratings at CARE AA- with a stable outlook. The company's short term ratings are reaffirmed at CARE A1+.
Sun Pharmaceuticals Advance Research Company (SPARC) was down 2.77% to Rs 114. SPARC announced that the US Food and Drug Administration (USFDA) has granted Orphan Drug Designation to SCO-088 for the treatment of patients with Chronic Myeloid Leukemia. SCO-088 is a novel and highly selective Bcr - Abl kinase inhibitor intended for the treatment of resistant Chronic Myelogenous Leukemia.
JK Tyre Industries was down 3.92% to Rs 76 after CARE Ratings revised ratings on company's long term bank facilities to CARE A from CARE A+ with negative outlook.
India's benchmark bond yield fell for the fifth consecutive trading session. The yield on 10-year benchmark federal paper fell to 6.609% at 14:18 IST compared with 6.695% at close in the previous trading session.
Bond yields declined after the government proposed to start raising a part of its gross borrowing programme in external markets in external currencies. This will have beneficial impact on demand situation for the government securities in domestic market.
Besides broadening the bond market, this proposal could open up a new source of funding the budget deficit. It could play a critical role in reducing the local government borrowing in rupee and alleviate the pressure on local liquidity, leaving more funds in the local market.
The government also cut FY20 fiscal deficit target to 3.3% from 3.4%.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.7200, compared with its close of 68.4200 during the previous trading session.
MCX Gold futures for 5 August 2019 settlement rose 0.57% at Rs 34,781.
In the commodities market, Brent crude for September 2019 settlement was up 40 cents at $64.63 a barrel. The contract rose 41 cents or 0.64% to settle at $64.23 a barrel in the previous trading session.
Overseas, European markets were trading lower while Asian markets ended lower on Monday after a strong jobs report moderated expectations that the US Federal Reserve could soon be making a move on interest rates.
China's foreign exchange reserves expanded slightly to $3.1192 trillion at the end of June, official data showed Monday. The amount increased by $18.2 billion, or 0.6$ from the end of May, according to the State Administration of Foreign Exchange (SAFE).
US stocks closed slightly lower Friday, 5 July 2019, following an unexpectedly strong US payrolls report, reducing the chances of multiple Federal Reserve rate cuts by the end of the year.
On the data front, the US economy added a better-than-expected 224,000 jobs in June, while the unemployment rate ticked up slightly to 3.7% from 3.6%.
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