Indices hit day's low; Bajaj Auto declines

Key benchmark indices reversed early gains and hit fresh intraday low in morning trade. Selling pressure was broad based with metal stocks declining the most. At 10:14 IST, the barometer index, the S&P BSE Sensex, was down 106.90 points or 0.28% at 38,560.43. The Nifty 50 index fell 36.30 points or 0.32% at 11,438.15.

The S&P BSE Mid-Cap index was down 0.4%. The S&P BSE Small-Cap index was down 0.66%.

The market breadth was negative. On the BSE, 706 shares rose and 996 shares fell. A total of 87 shares were unchanged. In Nifty 50 index, 15 stocks advanced and 35 stocks declined.

Metal stocks declined. Steel Authority of India (down 2.54%), Jindal Steel & Power (down 2.41%), Tata Steel (down 2.06%), National Aluminium Company (down 1.94%), NMDC (down 1.41%), Hindustan Zinc (down 1.38%), Vedanta (down 1.2%) and Hindustan Copper (down 1.14%) slumped.

The S&P BSE Metal index was down 1.6% at 8,940.30.

Bajaj Auto slipped 1.07% to Rs 2910.45 after the company announced auto sales for the month of September 2019. Bajaj Auto reported a 20% decline in auto sales to 4.02 lakh units in September 2019 from 5.02 lakh units September 2018. In the domestic market, the auto maker sold 2.15 lakh units in September 2019 against 3.11 lakh units in September 2018, witnessing a fall of 31% in auto sales. The company exported 1.86 lakh units in September 2019 against 1.90 lakh units in September 2018, registering a contraction of 2%.

Lupin rose 0.96%. The drug major announced the launch of Sildenafil Tablets after receiving an approval from USFDA. Sildenafil Tablets are a phosphodiesterase-5 inhibitor and are indicated for the treatment of erectile dysfunction. According to IQVIA, Sildenafil Tablet had annual sales of approximately $216 million in the USA. The company also announced that it has received a Good Manufacturing Certificate (GMR) from Pharmaceutical and Medical Devices Agency, Japan for company's Goa Facility. The inspection was conducted between 24 September 2019 and 27 September 2019 in Unit 1 and Unit 2 of the facility. The said inspection was closed with no critical or major observations.

JMC Projects (India) was up 1.52% after the company announced that it has secured new orders of Rs 560 crore. The company has got a total order of Rs 312 crore from commercial real estate projects in Southern and Western India. Along with this, the company has also bagged an order from water supply project in Odisha worth Rs 248 crore.

On domestic macro front, the fiscal deficit of central government declined 6.3% to Rs 553840 crore in April-August 2019-20 over April-August 2018-19. The fiscal deficit as a percentage of full year estimate stood at 78.7% in April-August 2019-20 compared with 94.7% touched in the corresponding period of last year.

The index of Eight Core Industries carrying 40.27% weight of items included in the Index of Industrial Production (IIP) has declined by 0.5% in August 2019 as compared to the index of August 2018. Coal production declined by 8.6% in August 2019 over August 2018. The crude oil production declined 5.4% in August 2019 over August 2018. The Natural Gas production declined by 3.9% in August 2019 compared to the same period last year. Cement production declined by 4.9% in August 2019 over August 2018. Electricity generation declined by 2.9% in August 2019 over August 2018

Petroleum refinery production increased by 2.6% in August 2019 over August 2018. Fertilizers production increased 2.9% in August 2019 over August 2018. Steel production increased by 5.0% in August 2019 over August 2018.

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