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Auto stocks drop sharply

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Key benchmark indices hovered in negative zone in morning trade after an initial weakness caused due to negative global stocks. At 10:15 IST, the barometer index, the S&P Sensex, was down 138.46 points or 0.44% at 31,659.38. The index was down 54.15 points or 0.55% at 9,853.90. Today's fall was led by Tata Motors, and

Domestic stocks nudged lower in early trade on negative global cues weighed by escalation in tensions between the US and North Korea.

The S&P Mid-Cap index was down 1.01%. The S&P Small-Cap index was down 1.34%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on 1,598 shares declined and 420 shares rose. A total of 79 shares were unchanged.

Overseas, Asian stocks were trading lower as investors continued to take risks off the table even as American officials tried to ease concerns amid an escalation in tensions between the US and North Korea.

US stocks closed lower yesterday, 9 August 2017 as tensions between North Korea and the US added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results.

In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn't halt its threats.

On the Federal Reserve front, Chicago Fed President Charles Evans said he supported starting a reduction of the central bank's $4.5 trillion balance sheet in September but was ambivalent about another rate hike this year.

Back home, auto stocks dropped. Maruti Suzuki India (down 0.88%), Mahindra & Mahindra (M&M) (down 0.43%), Ashok Leyland (down 2.1%), Escorts (down 2.52%), (down 0.65%), Hero MotoCorp (down 3.16%) and TVS Motor Company (down 2.62%) edged lower.

lost 6.06% as Q1 net profit was boosted by one-time gain of Rs 3609 crore due to changes made to the company's subsidiary Jaguar Land Rover's pension plans. The company's consolidated net profit rose 41.59% to Rs 3200 crore on 9.92% drop in revenue to Rs 58651 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017. Revenue was lower due to translation impact from Pound to Rupee.

The operating performance broadly reflects lower wholesale volumes for Jaguar Land Rover business excluding the China joint venture, and continuation of higher competitive incentive levels and launch and growth costs seen in FY 2017. In standalone business, a significant de-growth in the medium & heavy commercial vehicles (M&HCV) segment, flat light commercial vehicles (LCV) segment and moderate growth in passenger vehicle segment was seen.

In standalone business, a significant de-growth in the medium & heavy commercial vehicles (M&HCV) segment, flat light commercial vehicles (LCV) segment and moderate growth in passenger vehicle segment was seen.

declined 3.16%. The company's consolidated net profit rose 22.1% to Rs 459.62 crore on 28.5% growth in net sales to Rs 1991.78 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

Cement stocks fell. Ambuja Cements (down 1.13%), ACC (down 0.99%), UltraTech Cement (down 1.33%) and Shree Cement (down 1.25%) declined.

Grasim Industries was off 0.48%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Balmer Lawrie & Company lost 4.26% after net profit fell 19.5% to Rs 29.80 crore on 0.8% increase in net sales to Rs 465.35 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

INEOS Styrolution India slumped 9.47% after net profit declined 81.71% to Rs 2.74 crore on 18.22% rise in net sales to Rs 449.17 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

INEOS Styrolution India said its board approved expansion of ABS compounding capacity at the Moxi plant in Vadodara, Gujarat from 66KTA to 100KTA for an investment of Rs 130 crore. The estimated capital expenditure will be financed through internal group borrowing. The estimated time to complete the expansion project is scheduled by end of the financial year ending 31 March 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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