Volatility ruled the roost as the key benchmark indices once again cut losses in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 100.09 points or 0.29% at 34,849.15. The Nifty 50 index was down 38.10 points or 0.36% at 10,595.20. Pharma shares dropped. Most FMCG stocks declined. Weak Asian stocks weighed on the local stocks.
Domestic stocks began trading for the day on a downbeat note on weak Asian stocks. Stocks cut losses in morning trade. After a brief intraday pullback, the key benchmark indices once again resumed decline in mid-morning trade on fresh selling in index pivotals.
The S&P BSE Mid-Cap index was down 0.2%. The S&P BSE Small-Cap index was off 0.03%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1091 shares rose and 1320 shares fell. A total of 140 shares were unchanged.
Pharma shares dropped. Aurobindo Pharma (down 1.77%), Cipla (down 1.01%), Dr Reddy's Laboratories (down 0.86%), Lupin (down 0.46%), Sun Pharmaceutical Industries (down 0.16%), Alkem Laboratories (down 0.24%), Cadila Healthcare (up 0.48%), GlaxoSmithKline Pharmaceuticals (down 0.41%) and Wockhardt (down 0.96%) declined.
Glenmark Pharmaceuticals lost 2.82%. On a consolidated basis, Glenmark Pharmaceuticals' net profit fell 17.48% to Rs 151.63 crore on 7.28% decline in net sales to Rs 2247.89 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 29 May 2018.
Glenmark Pharmaceuticals' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 0.98% to Rs 396.38 crore in Q4 March 2018 over Q4 March 2017.
Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals, commented that while FY 2018 was a challenging year mainly on account of pricing pressure in the US, other key markets like Europe and India performed well on the back of new product launches. Even though the company expects pricing pressure to persist, FY 2019 has started on a positive note with approvals for some interesting products in the US. The company's strong R&D pipeline of novel assets will help propel growth in the long run.
Most FMCG stocks declined. Procter & Gamble Hygiene and Health Care (down 0.14%), Jyothy Laboratories (down 0.23%), Bajaj Corp (down 0.57%), Britannia Industries (down 0.55%), Dabur India (down 0.25%), Hindustan Unilever (down 0.36%) and Marico (down 0.75%) fell.
GlaxoSmithkline Consumer Healthcare (up 1.89%), Colgate-Palmolive (India) (up 0.87%), Godrej Consumer Products (up 0.05%), Nestle India (up 0.18%) and Tata Global Beverages (up 0.89%) rose.
Overseas, Asian stocks dropped as concerns about the repercussions of Italy's political turmoil and the renewal of trade tensions between the US and China gripped financial markets. The prospect that Italy might need a fresh election that could effectively become a referendum on the nation's inclusion in the euro zone rattled markets.
US stocks tumbled yesterday, 29 May 2018 joining a global equity selloff sparked by concern Italy's political woes will destabilise Europe.
On the Federal Reserve front, St. Louis Fed President James Bullard reportedly said early Tuesday in Japan that it was difficult for the US central bank to raise interest rates by a large margin when the and the European Central Bank were pursuing accommodative policy.
Investors are also keeping an eye on the White House, with the Trump administration giving conflicting signals on talks with North Korea and plowing ahead with plans for tariffs on Chinese goods. On Saturday, 2 June 2018 US Secretary of Commerce Wilbur Ross will reportedly travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.
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