Fresh selling in index pivotals pulled the key indices to day's low in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 183.45 points or 0.51% at 36,057.55. The Nifty 50 index was down 37.70 points or 0.35% at 10,846.05. IT stocks gained. Most Asian stocks fell.
Key equity benchmarks drifted lower in early trade as profit booking emerged on the bourses after six straight days of gains. Stocks hovered in a small range in negative zone in morning trade.
Data showing that local funds were net sellers of Indian stocks also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 293.12 crore yesterday, 3 December 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 806.45 crore yesterday, 3 December 2018, as per provisional data.
The S&P BSE Mid-Cap index was up 0.05%. The S&P BSE Small-Cap index was up 0.21%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1019 shares rose and 1076 shares fell. A total of 118 shares were unchanged.
IT stocks gained. Wipro (up 3.52%), TCS (up 1.11%), Infosys (up 2.3%), HCL Technologies (up 1.04%), Oracle Financial Services Software (up 2.6%), MindTree (up 0.06%), Hexaware Technologies (up 1.45%) edged higher. Tech Mahindra (down 0.08%) and Mphasis (down 0.31%) fell.
Sun Pharmaceutical Industries rose 0.31% on bargain hunting after the company issued a clarification to the bourses. Sun Pharmaceutical Industries said that over the last one week, there have been some media reports on Sun Pharma around a note issued by one of the securities firm and a potential whistleblower complaint against the company.
With reference to allegations that one of the partners of an audit firm of Sun Pharma (Valia & Timbadia) was investigated in a stock price rigging case, the company clarified that none of the partners of this audit firm or the firm itself was a party to this investigation. With reference to news reports of a whistleblower complaint filed against Sun Pharma with Sebi, the company clarified that as of now, it has not received any query related to this from Sebi.
With reference to a question is being raised about an insider trading case which was settled with Sebi regarding the Ranbaxy acquisition, the company clarified that it has not been involved in any insider trading norm violations relating to the Ranbaxy deal. With reference to news reports about Sebi likely to re-open the old insider trading case, the company clarified that it has not received any information from Sebi in this regard.
With reference to concerns being raised about Sun Pharma's low single digit tax rate, the company clarified that this was the case many years back and now its effective tax rate is in mid-teens. With reference to queries on loans and advances given to non-related parties which have increased significantly in FY2018, the company clarified that these are loans and advances given in the normal course of business at arms-length basis at market interest rates and at market terms and conditions.
Uflex rose 5.18%. Uflex announced that its global film manufacturing arm, FlexFilms, has been granted United States Patent covering entire categories of formable films that include one or more BOPET layers used in Alu Alu blister packaging. The patent was issued to Flex Films (USA) Inc on 20 November 2018 for a period of 20 years, lending a competitive advantage to the films business of the company over its opponents in cold formed pharmaceutical packaging industry. With the patent issuance, the company gets exclusive right of manufacturing and sale of this special BOPET film in US, Europe and India. The announcement was made after market hours yesterday, 3 December 2018.
Overseas, most Asian stocks were trading lower following Monday's jumps across the region, signaling fading investor applause for the US-China trade truce. US stocks closed higher Monday, after the US and China over the weekend called a temporary truce to their trade war.
A trade standoff between the US and China saw a breakthrough at the G-20 meeting in Argentina, a gathering that included a highly-anticipated dinner between President Donald Trump and Chinese leader Xi Jinping. The two sides agreed to launch negotiations to reduce trade tensions and discuss forced technology transfer, intellectual-property protection, non-tariff barriers, and cyber and agriculture issues, among other concerns.
Meanwhile, the New York Stock Exchange and Nasdaq will remain closed Wednesday as a national day of mourning will be held in memory of former President George H.W. Bush.
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