Benchmarks come off day's low; auto shares tumble

Key benchmarks pared losses in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 182.05 points or 0.47% at 38,885.28. The Nifty 50 index was down 60.35 points or 0.51% at 11,694.30.

Shares opened lower and extended losses as the session progressed. After hitting an intraday low in morning trade, key indices pared losses in mid-morning trade. The undertone of the market was fragile amid negative Asian cues.

Broader market slumped. Among secondary barometers, the BSE Mid-Cap index was down 1.17%. The BSE Small-Cap index was down 1.19%.

The market breadth, indicating the overall health of the market, was weak. On BSE, 584 shares rose and 1514 shares fell. A total of 133 shares were unchanged.

Auto shares tumbled. TVS Motor Company (down 2.25%), Maruti Suzuki India (down 2.23%), Mahindra & Mahindra (down 2.08%), Tata Motors (down 1.83%), Ashok Leyland (down 1.69%), Bajaj Auto (down 1.04%), Escorts (down 0.55%) and Eicher Motors (down 0.31%), edged lower.

Hero MotoCorp lost 3% to Rs 2,526 after net profit fell 24.51% to Rs 730.32 crore on 7.8% fall in total income to Rs 8049.18 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours on Friday, 26 April 2019. Domestic stock markets were closed on Monday, 29 April 2019, on account of General Elections (Lok Sabha).

Hero MotoCorp's Earnings Before Interest, Tax, Depreciation, & Amortization (EBIDTA) stood at Rs 1069 crore reflecting 13.6% EBIDTA margin in Q4 March 2019. The Q4 March 2019 was a difficult period that saw the two-wheeler industry contract significantly in the face of external factors.

Dr. Pawan Munjal, Chairman, Hero MotoCorp, said, the company forayed into two new product segments the premium motorcycle space with Xtreme 200R and the 125cc scooter category with Destini 125. The company is aiming for aggressive market share gains in these categories.

Most metal shares declined. Hindustan Copper (down 2.94%), Steel Authority of India (down 2.74%), Vedanta (down 2.39%), Jindal Steel & Power (down 2%), National Aluminium Company (down 1.52%), Tata Steel (down 0.4%) and Hindustan Zinc (down 0.07%), edged lower. NMDC (up 0.45%), Hindalco Industries (up 0.47%) and JSW Steel (up 0.85%), edged higher.

Domestic financial market will remain closed on Wednesday, 1 May 2019, on account of Maharashtra Day.

Overseas, most Asian shares declined as China's manufacturing sector grew slower than expected in April, according to data released on Tuesday. Meanwhile, trade negotiations between the US and China are set to resume in Beijing later in the day.

The Caixin/Markit factory Purchasing Managers' Index for April was 50.2. The reading for March was 50.8. The private PMI survey came after China's National Bureau of Statistics released official manufacturing PMI for April, which came in at 50.1. PMI readings above 50 indicate expansion, while those below that signal contraction.

In US, all three major stock indices ended higher on Monday as the latest data showed softer core inflation in March while consumer spending jumped.

US consumer spending rose 0.9% in March from the prior month after a 0.1% February increase, according to a Commerce Department report Monday. The closely followed core PCE inflation was flat in March, knocking the yearly rate down to 1.6% from 1.7%. Personal incomes, meanwhile, increased 0.1% in March.

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