Key benchmark indices extended early slide and hit fresh intraday low in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was down 259.34 points or 0.73% at 35,284.60. The Nifty 50 index was down 91.30 points or 0.85% at 10,710.55. Domestic stocks fell tracking losses in US and Asian shares amid rising geopolitical tensions in the Korean peninsula.
Local stocks began trading for the day on a weak note on negative Asian stocks.
The S&P BSE Mid-Cap index was down 0.95%. The S&P BSE Small-Cap index was down 0.8%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,460 shares fell and 479 shares rose. A total of 86 shares were unchanged.
Shares of oil exploration and production (E&P) companies edged lower. Reliance Industries (down 1.42%), ONGC (down 1.64%) and Oil India (down 0.06%) fell.
PSU OMCs declined. HPCL (down 2.42%), BPCL (down 1.97%) and Indian Oil Corporation (down 1.4%) fell. Cement stocks fell. Ambuja Cements (down 1.19%),
ACC (down 0.1%), UltraTech Cement (down 2.79%) and Shree Cement (down 1.51%) declined.
Grasim Industries was off 1.72%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
EPC Industrie rose 1.46% after the company announced a joint venture with an Israeli Greenhouse firm Top Greenhouses. The announcement was made after market hours yesterday, 15 May 2018.
EPC Industrie will hold 60% stake in the joint venture (JV) while Top Greenhouses will hold remaining 40%. The JV company will focus on protected cultivation business providing specialised, cutting edge and relevant technologies to Indian market. The JV will bring out the best by combining the ingenuity of Israel to the big Indian market, the firm said.
On the political front, 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, the Congress and the Janata Dal Secular (JDS) stood second and third with wins on 78 and 38 seats respectively. All eyes are now on Governor Vajubhai Vala as both the BJP and the post-poll combine of the Congress and the JDS have staked a claim to form the government.
Overseas, Asian stocks were trading lower as geopolitical developments and rising benchmark US yields spurred a return of risk aversion. North Korea canceled high-level talks with Seoul, denouncing military exercises between South Korea and the United States, breaking from several months of easing relations on the peninsula. This has also raised concerns about the planned summit between US President Donald Trump and his North Korean counterpart leader Kim Jong Un scheduled next month.
US stocks halted a four-day rally yesterday, 15 May 2018 with the steepest slide in almost two weeks as healthcare and tech shares retreated. Investors are weighing the prospect for higher Federal Reserve rates as strong US retail and factory data on Tuesday fueled bets the Fed may raise rates three more times this year.
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