Key indices languished in the red in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 287.08 points or 0.91% at 31,244.25. The Nifty index was down 80.10 points or 0.82% at 9,740.15. Domestic stocks extended their four-day slide tracking selling in global stocks as investors continued to pare their riskier positions amid rise in geopolitical tensions between the US and North Korea.
Sentiment was also affected adversely after the finance ministry said in its mid-year economic survey today, 11 August 2017, that there are downside risks to the Indian government's growth forecast of 6.75-7.5% for the fiscal year to March 2018.
Domestic stocks saw a gap-down opening on weak global cues as geopolitical tensions prompted investors to adopt a risk off approach. Stocks cut losses in morning trade. Stocks languished in the red later during the session.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,497 shares fell and 888 shares rose. A total of 125 shares were unchanged.
State Bank of India rose 0.98%. The bank's net profit fell 20.44% to Rs 2005.53 crore on 28.57% rise in total income to Rs 62911.08 crore in Q1 June 2017 over Q1 June 2016. The announcement was made during market hours today, 11 August 2017.
Shares of power generation and power distribution companies edged lower for the fourth straight day.
NHPC (down 0.01%), Tata Power Company (down 0.91%), NTPC (down 1.53%), Adani Power (down 4.17%), Power Grid Corporation of India (down 0.02%), Reliance Infrastructure (down 1.81%) and Reliance Power (down 0.89%) declined. Torrent Power (up 1.14%) and GVK Power & Infrastructure (up 2.32%) gained.
Shares of psu coal miner Coal India dropped 0.44%.
IT stocks were mixed. Tech Mahindra (up 0.04%), Infosys (up 0.25%), and Wipro (up 0.73%) edged higher. HCL Technologies (down 1.65%) and TCS (down 0.49%) declined.
Bank of Maharashtra rose 0.57% after the Government of India raised its stake in the bank to 82.91% from 81.61% earlier. The announcement was made during trading hours today, 11 August 2017. Bank of Maharashtra said that its board allotted 8.88 crore equity shares at Rs 33.75 each to the Government of India (GoI) on preferential basis. Consequently, shareholding of GoI in Bank of Maharashtra has increased from 81.61% to 82.91%.
Meanwhile, the finance ministry said in its mid-year economic survey today, 11 August 2017, that there are downside risks to the Indian government's growth forecast of 6.75-7.5% for the fiscal year to March 2018. The survey, authored by Chief Economic Adviser Arvind Subramanian, also said inflation was expected to remain below the central bank's 4% target through to the end of the fiscal year and described scope for monetary easing as "considerable".
Overseas, European stocks edged lower in early trade and Asian stocks dropped as investors continued to pare their riskier positions following escalating geopolitical tensions between the US and North Korea. Japan's markets were shut for a public holiday. US stocks finished sharply lower yesterday, 10 August 2017 amid a persistent war of words between the US and North Korea and a clutch of disappointing earnings reports.
Geopolitical tension gained momentum yesterday, 10 August 2017 after a North Korean army commander reportedly said that sound dialogue isn't possible with US President Donald Trump and only absolute force can work on him. North Korea also laid out detailed plans of how it would launch a missile strike on US military bases in Guam. Reports in media indicated that China would intervene if there is a first strike against North Korea.
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