Key benchmark indices trimmed some intraday losses in mid-afternoon trade after hitting intraday lows in afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, fell 221.96 points or 0.65% at 33,824.98. The Nifty 50 index declined 87.80 points or 0.84% at 10,370.55. The Sensex continued to languish below the 34,000 level after falling below that level in early trade. Aviation stocks dropped as global crude oil prices advanced. Capital goods stocks fell.
Investors' sentiment was hit after a private survey data showed deterioration in India's services sector last month. Weakness in global stocks also weighed on sentiment on the domestic bourses as investors digested the latest growth forecast for China and uncertain Italian election result.
Key indices kick-started the session on a weaker note and thereafter extended intraday losses to languish in red till afternoon trade. Indices trimmed some losses in mid-afternoon trade.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.81%. The S&P BSE Small-Cap index dropped 1.07%. Both these indices underperformed the Sensex.
Overseas, European stocks edged higher amid initial volatility after an uncertain Italian election result left the country preparing for the prospect of a hung parliament. Asian stocks edged lower as China's National People's Congress meeting kicked off with Premier Li Keqiang announcing 2018 growth target for China at around 6.5%. Among other economic data, the China's Caixin services purchasing managers' index (PMI) dipped to 54.2 in February from 54.7 in the previous month.
US stocks closed well off session lows on Friday, 2 March 2018, helped by a sharp rise in health care shares. Stocks traded sharply lower earlier in the session on fears that President Donald Trump's announced tariffs on steel and aluminum could spark a trade war. Closer home, the broad market depicted weakness. There were more than three losers against every gainer on the BSE. 2,044 shares declined and 620 shares advanced. A total of 138 shares were unchanged.
Aviation stocks dropped as global crude oil prices advanced. SpiceJet (down 2.36%), InterGlobe Aviation (down 0.55%) and Jet Airways (India) (down 0.05%) declined.
Jet fuel prices are directly linked to international crude oil price.
Capital goods stocks fell. ABB India (down 2.19%), BEML (down 1.35%), L&T (down 0.85%), Siemens (down 0.75%), Bhel (down 0.72%) and Thermax (down 0.14%) edged lower. Bharat Electronics (up 0.1%) edged higher.
Aurobindo Pharma declined 3.15%. With regard to media news captioned "US FDA observations - Aurobindo Unit 4 inspected by US FDA from Feb 12-20 and issues 9 observations, the company issued a clarification during market hours today, 5 March 2018. Aurobindo Pharma said that the USFDA has conducted an inspection at the company's unit IV, a formulation manufacturing facility located at Pashamylaram, Hyderabad from 12 February 2018 to 20 February 2018. This is a scheduled inspection and at the end of the inspection, the company was issued a Form 483 with 9 observations. None of the observations are related to data integrity or repetitive in nature, it added. The company is in the midst of providing a comprehensive response to the observations and would be replying to the USFDA within 15 working days from the date of closure (20 February 2018) of audit.
Thomas Cook (India) advanced 6.01% after the company's board of directors gave their consent to the management to explore the possibility of an internal corporate restructuring exercise. The announcement was made after market hours on Thursday, 1 March 2018. The stock market was closed on Friday, 2 March 2018 on account of Holi.
The board of directors of Thomas Cook (India) at its meeting held on Thursday, 1 March 2018 gave consent to the management to explore the possibility of an internal corporate restructuring exercise that would enable the company to focus on travel related business, give the shareholders direct exposure and shareholding in the business of Quess Corp and enhance the stakeholders' value (proposed restructuring). Shares of Quess Corp tumbled 3.21%.
Among economic data, the business conditions in India's service sector deteriorated in February. The seasonally adjusted Nikkei India services purchasing managers' index (PMI) dropped to 47.8 in February, from 51.7 in January. The data was released at 10:30 IST today, 5 March 2018.
Among key domestic events, in a big morale booster to the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) at the centre, the BJP along with its ally Indigenous People's Front Of Tripura has secured a comfortable majority by bagging 43 out of 59 seats in the recently held assembly elections in Tripura. In Nagaland, the ruling Naga Peoples Front (NPF) emerged as the single largest party, securing 27 out of 59 seats. The BJP has secured 12 seats. In a rude shock, the Congress party has been wiped out from Tripura and Nagaland, having failed to secure a single seat in these two states. In Meghalaya, the Congress has emerged as the single largest party, securing 21 out of 59 assembly seats, followed by the National People's Party bagging 19 seats. The counting of votes for the assembly elections took place over the weekend.
Meanwhile, the developments in the Budget Session of Parliament will be closely watched. Both the Houses of Parliament which were adjourned on 9 February 2018 for a recess, resumed today, 5 March 2018. The second part of the session would primarily see discussions on the demand for grants for various ministries.
Meanwhile, as per reports, both the houses of Parliament were adjourned till 11:00 IST tomorrow, 6 March 2018 over ruckus on the Punjab National Bank (PNB) scam.
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