Indices hover in range

Key indices continued trading in a range with small losses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 78.66 points or 0.21% at 37,945.71. The Nifty 50 index was down 26.20 points or 0.23% at 11,444.50.

The Sensex was trading below the psychological 38,000 level after falling below that level in early trade. Stocks edged lower in early trade, with the Sensex falling below the psychological 38,000 level tracking mostly negative Asian stocks. Key benchmark indices continued to trade lower in morning trade. Weakness persisted on the bourses in mid-morning trade. Indices turned range bound in afternoon trade.

The S&P BSE Mid-Cap index was off 0.28%. The S&P BSE Small-Cap index was off 0.24%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1072 shares rose and 1482 shares fell. A total of 146 shares were unchanged.

Yes Bank (up 1.95%), Hero MotoCorp (up 1.74%), Mahindra & Mahindra (up 1.69%), Bharti Airtel (up 1.23%), ITC (up 1.06%) and Asian Paints (up 1%), were major Sensex gainers.

Sun Pharmaceutical Industries (down 3.45%), Vedanta (down 1.84%), ICICI Bank (down 1.52%), Power Grid Corporation of India (down 1.37%), Coal India (down 1.37%), HDFC (down 0.74%) and Reliance Industries (down 0.7%), were major Sensex losers.

State Bank of India lost 1.88% ahead of its April-June 2018 result today, 10 August 2018. Meanwhile, SBI said that executive committee of central board (ECCB) accorded approval to explore and initiate the process of divestment upto 4% of stake of SBI in SBI General Insurance Company to a non-promoter entity through small parcel share sale (SPSS). The announcement was made after market hours yesterday, 9 August 2018.

Tata Motors fell 1.75%. Jaguar Land Rover during market hours today reported total retail sales of 36,144 vehicles in July 2018, down 21.6% year on year, primarily reflecting transitional issues in certain markets. For July Jaguar retail sales were 10,992 and Land Rover retail sales were 25,152 vehicles, down 15.2% and 24% respectively on the same month last year.

Retails for July were down in China (46.9%), reflecting continued market volatility in the first month of the duty change as well as trade tensions. Sales were also down in Europe (26.5%) and the UK (18.3%), impacted by the industry-wide issue of delays in WLTP certification of 2019 model year vehicles.

Retail sales were also down in North America (9.5%), resulting from softer industry volumes (down more than 3%) combined with foregoing some higher discounted business and later timing for new model year launches this year compared to a year ago.

On the macro front, the government will declare industrial production (IIP) data for June at 17:30 IST today, 10 August 2018.

Overseas, European shares were trading lower Friday as investors reacted to corporate earnings, fresh turmoil for Turkey and continued fears of a trade war between the US and China.

Turkey's lira tumbled to another record low against the dollar on Thursday after a Turkish delegation returned from meeting US officials in Washington with no apparent solution to a diplomatic rift that has opened up between them. The European Central Bank (ECB) is reportedly concerned over the impact of a weak Turkish lira on European banks.

Most Asian stock markets dropped as trade and broader geopolitical concerns continue to weigh on over investor sentiment. Japan's economy expanded in the April-June period after a mild contraction in the previous three months. The world's third-largest economy expanded at an annualized pace of 1.9% in the second quarter of 2018 after a revised 0.9% contraction in the first quarter.

The US stock market ended mostly lower on Thursday, as investors weighed the continuing trade dispute between the US and China against the backdrop of strong corporate earnings and a healthy economic performance.

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