Sensex, Nifty continue trading lower

Key benchmark indices continued trading lower in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was down 89.84 points or 0.23% at 39,651.52. The Nifty 50 index was down 31.26 points or 0.26% at 11,882.85

Among secondary barometers, the BSE Mid-Cap index was down 0.27%. The BSE Small-Cap index was down 0.05%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 711 shares rose and 988 shares fell. A total of 105 shares were unchanged.

Hexaware Technologies rose 2.70%. The company announced that it has acquired 100% shares of Mobiquity and Mobiquity Softech, a wholly owned subsidiary of Mobiquity for a total cash consideration of $182 million. Mobiquity creates digital products for brands like Amazon Web Services, Rabobank, Philips, Wawa, Backbase and Otsuka.

Pharma shares declined. Aurobindo Pharma (down 2.05%), Cadila Healthcare (down 1.83%), Divi's Laboratories (down 1.76%), Sun Pharmaceutical Industries (down 0.95%), Strides Shasun (down 0.92%), Piramal Enterprises (down 0.64%), Cipla (down 0.28%) and Lupin (down 0.19%), edged lower. Wockhardt (up 1.26%), Glenmark Pharmaceuticals (up 0.36%) and Alkem Laboratories (up 0.14%), edged higher.

Dr. Reddy's Laboratories was down by 1.32%. The company announced that it entered into a definitive asset purchase agreement with Upsher-Smith Laboratories. Dr. Reddy's Laboratories would sell its US and select territory rights for 'Zembrace Symtouch' 3 mg and Tosymra 10 mg, also known as "DFN-02", which are commercialized through its wholly owned subsidiary, Promius Pharma. Under the agreement, Dr.Reddy's Laboratories will receive $70 million as upfront consideration, $40.5 million in near term milestones and additional financial considerations including, existing contractual obligation and inventory.

Most realty stocks witnessed selling. Unitech (down 6.03%), D B Realty (down 3.06%), Sobha (down 1.61%), Sunteck Realty (down 1.36%), Peninsula Land (down 0.78%), The Phoenix Mills (down 0.47%) and Oberoi Realty (down 0.29%), all declined. Only Prestige Estates Projects (up 0.17%) and Anant Raj (up 0.51%), trader higher.

On the domestic front, the markets regulator on Thursday directed credit rating agencies (CRAs) to start disclosing the probability of default for the issuers they rate. According to the latest Sebi circular, rating companies, in consultation with the regulator, will now create a uniform probability of default benchmark for each rating category on their website, for one-year, two-year and three-year cumulative default rates, both for the short term and long term.

India's inflation based on wholesale price index (WPI) for May 2019 will be unveiled today, 14 June 2019. WPI-based inflation, base year 2011-12, declined to 3.1% in April 2019 from 3.2% in March 2019, while snapping rise for last two straight months.

Overseas, Asian stock markets were trading lower on Friday as sovereign bonds rate dip. Crude oil prices rallied after an attack on tankers in the Gulf of Oman. Hong Kong's Hang Sang remained under pressure and continued to trade lower.

US stocks gained on Wednesday on expectations that trade officials from the US and China will clinch a deal on the sidelines of a G-20.

Crude oil steadied following attacks on two tanker ships in the Gulf of Oman on Thursday. In the global commodities markets, Brent for August 2019 settlement rose $1.34 a barrel or 2.23% to settle at $61.31 a barrel during the previous trading session.

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