Auto stocks drop

Weakness persisted on the bourses in mid-morning trade as index pivotals remained gripped in selling pressure. At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 371.67 points or 1.04% at 35,512.74. The Nifty 50 index was down 127.35 points or 1.18% at 10,655.55. Auto stocks fell.

Trading for the day began on a subdued note as the key benchmark indices saw a gap-down opening on negative Asian stocks. Stocks extended initial losses in morning trade.

Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 5 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 357.82 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 791.59 crore.

The S&P BSE Mid-Cap index was down 1.26%. The S&P BSE Small-Cap index was down 1.24%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 505 shares rose and 1576 shares fell. A total of 101 shares were unchanged.

Auto stocks fell. Maruti Suzuki India (down 4.49%), Tata Motors (down 1.68%), Eicher Motors (down 2%), Ashok Leyland (down 1.83%), Escorts (down 2.54%), Bajaj Auto (down 0.67%), Mahindra & Mahindra (M&M) (down 0.65%), Hero MotoCorp (down 0.75%) and TVS Motor Company (down 4.1%) declined.

Sun Pharmaceutical Industries rose 1.66% to Rs 420.45 on bargain hunting after a recent slide. Shares of Sun Pharmaceutical Industries fell 15.99% in three trading sessions to settle at Rs 413.60 yesterday, 5 December 2018, from its close of Rs 492.30 on 30 November 2018.

Tata Communications lost 2.39%. UROS Group, a global innovator in turnkey Internet of Things (IoT) solutions and smart connectivity, is collaborating with Tata Communications, a leading digital infrastructure provider, to support the deployment of IoT and smart city solutions across large commercial and public sector organisations globally. This collaboration will leverage the latest technologies and industry resources of both companies. The announcement was made after market hours yesterday, 5 December 2018.

On the political front, state assembly elections are being be closely watched. Polling in Rajasthan and Telangana will be held tomorrow, 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election to the 90-member Chhattisgarh Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.

Overseas, Asian stock prices fell Thursday amid growing uncertainty about the global economy and President Donald Trump's tariff policies on China.

Meanwhile, Bank of Japan Governor Haruhiko Kuroda said economic risks from abroad could be severe. The US Federal Reserve's Beige Book report showed there were concerns about higher tariffs from a widening trade war, rising interest rates and tight labor markets. Trump's get-tough approach to trade was causing rising costs for manufacturers and weaker sales at companies, it said.

Trading in US index futures indicated that the Dow could slump 322 points at the opening bell today after Canada arrested a top executive of Chinese telecom giant Huawei Technologies at the request of the US, a move that is seen as exacerbating tensions between the US and China.

The US New York Stock Exchange and Nasdaq were both closed on Wednesday to mark the day of mourning for the late former President George H.W. Bush, who died on November 30 at age 94.

Powered by Capital Market - Live News