Key benchmark indices extended early losses and hit fresh intraday low in morning trade. At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 166.53 points or 0.42% at 39,590.28. The Nifty 50 index was down 53.95 points or 0.45% at 11,852.25. Weak global cues sapped investors' risk appetite. Selling in banks shares put pressure on bourses. Metal shares tumbled.
Among secondary barometers, the BSE Mid-Cap index was down 0.72%. The BSE Small-Cap index was down 0.70%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 575 shares rose and 1228 shares fell. A total of 65 shares were unchanged.
Banks shares were under pressure. Among private sector banks, IndusInd Bank (down 5.22%), RBL Bank (down 2.05%), Kotak Mahindra Bank (down 0.18%), HDFC Bank (down 0.08) and ICICI Bank (down 0.07%), decreased. Axis Bank was up 0.55%.
Yes Bank was down 9.28%. With reference to news item captioned Another exit at Yes Bank over Rana Kapoor's re-entry bid, Yes Bank denied the contents of said media report. The bank said it was not aware of the source and the news item was factually incorrect.
Among PSU banks, Jammu and Kashmir Bank (down 5.92%), Punjab National Bank (down 4.99%), Union Bank of India (down 3.43%), Oriental Bank of Commerce (down 3.29%), Bank of India (down 2.73%), Bank of Baroda (down 2.35%), Allahabad Bank (down 1.79%), Syndicate Bank (down 1.72%) and State Bank of India (down 0.58%), declined.
Metal shares fell across the board. NMDC (down 5.87%), Hindustan Copper (down 2.27%), Vedanta (down 2.26%), Jindal Steel & Power (down 1.69%), Tata Steel (down 1%), Hindalco Industries (down 0.88%), JSW Steel (down 0.87%), National Aluminium Company (down 0.5%), Hindustan Zinc (down 0.23%) and Steel Authority of India (down 0.1%), declined.
Mangalore Chemicals & Fertilizers was up 0.51% on the BSE after the company announced that it had restarted the Ammonia, Urea and ABC production. The company announced that due to non-availability of water, the Ammonia, Urea and ABC production was stopped from 14 May 2019. In view of onset of monsoon and normalization of water supply, the Ammonia, Urea and ABC production has commenced from 12 June 2019.
Sintex Industries hit a lower circuit limit of 10% after the company defaulted on the payment of interest and principal amount on secured non-convertible debentures (NCDs). On 11 June 2019, the current default amount on interest stood at Rs 3.03 crore and principal amount at Rs 85.84 crore on 10.70% secured NCDs for a tenure of 7 years.
On the economic front, the all-India general Consumer Price Index (CPI) inflation rose to 3.05% in May 2019 (new base 2012=100), compared with 2.99% in April 2019.
India's industrial production (base year 2011-12=100) accelerated to a six-month high of 3.4% in April 2019, from 0.4% growth recorded in the previous month. Also, the industrial production growth for March 2019 has been revised upwards to 0.4% from (-) 0.1% as reported provisionally.
Overseas, Asian stock markets were trading lower on Thursday as trade war shadow continued to loom on global markets.
Hong Kong's Hang Seng index was down 0.79% amid violent clashes between protesters and riot police over a controversial extradition bill that would allow fugitives to be sent to China. Hong Kong has agreements with some 20 countries to hand over people wanted for certain crimes.
US stocks declined on Wednesday as market focus remained largely on global trade developments after President Donald Trump said that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed.