Market trades in range; breadth weak

The benchmark indices traded in a narrow range with modest losses in mid-morning trade. The Nifty traded a tad above 16,500 mark. IT, media, PSU banks and realty shares tumbled.

At 11:27 IST, the barometer index, S&P BSE Sensex was down 286.66 points or 0.51% to 55,482.57. The Nifty 50 index fell 77.45 points or 0.47% to 16,506.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.91% while the S&P BSE Small-Cap index lost 0.92%.

The market breadth was weak. On the BSE, 1,147 shares rose while 2,030 shares fell. A total of 166 shares were unchanged.

Buzzing Index:

The Nifty IT index fell 1.90% to 29.336.35. The index lost 1.53% in three days.

Coforge Ltd (down 4.26%), L&T Technology Services Ltd (down 3.58%), Tech Mahindra Ltd (down 2.75%), Mindtree Ltd (down 2.38%) and Mphasis Ltd (down 2.17%) were the top losers.

Stocks in Spotlight:

Valiant Organics declined 3.01% to Rs 669.30 after the specialty chemicals maker informed about an incidence of blast in reactor in chlorination section of the company`s plant located at GIDC, Sarigam, Valsad, and Gujarat. The company said that the incident occurred on Friday, 3 June 2022 at around 9:50 a.m. There has been no loss to human life. However, minor injury reported to one person, who is under medical treatment. The incident reported to the concerned authorities, however, the exact cause is being investigated to take adequate corrective steps, the company added.

Zydus Lifesciences fell 0.39% to Rs 361.55. The drug maker received US drug regulator`s approval to market Famotidine tablets in the strengths of 20mg and 40mg. Famotidine is a histamine H2 receptor blocker. It works by reducing the amount of acid in the stomach. It is used to prevent and treat heartburn and other symptoms caused by excessive acid in the stomach (acid indigestion).

Cyient was down 0.285 to Rs 794.75. The company said that it had signed definitive agreements to acquire Celfinet, an international wireless engineering services company, for 41 million euro. Portugal-based Celfinet is focused on providing end-to-end network planning and performance optimization services. The reach and performance of ongoing 5G deployment and early steps towards 6G are developing to a point where they provide flawless infrastructure for pervasive and unified connectivity. With this acquisition, Cyient strengthens its Wireless engineering practice to support communication service providers (CSPs) and enterprises in deploying their pervasive connectivity networks at scale.

Global Markets:

Asian shares advanced on Monday. Market in South Korea is shut for a holiday.

China`s Caixin Services Purchasing Managers` Index released Monday came in at 41.4, better than April`s reading of 36.2 but still in contraction territory.

US stocks slid Friday as investors digested a stronger-than-expected jobs report and its implication for monetary policy going forward. The Dow Jones Industrial Average fell 348.58 points, or 1.1%, to 32,899.70. The S&P 500 slipped 1.6% to 4,108.54. The technology-heavy Nasdaq Composite fell nearly 2.5% to 12,012.73.

American employers added 390,000 jobs last month, the government reported Friday. The jobless rate held steady at 3.6% for the third consecutive month.

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