Indices trade near day's low

Key indices were trading near day's low in the afternoon trade, tracking negative global cues. At 13:28 IST, the barometer index, the S&P BSE Sensex, down 438.07 points or 1.17% at 37,043.05. The Nifty 50 index fell 102.40 points or 1.21% at 10,983.

The S&P BSE Mid-Cap index was down 0.76%. The S&P BSE Small-Cap index fell 1.09%.

The market breadth was weak. On the BSE, 706 shares rose and 1,530 shares fell. A total of 141 shares were unchanged.

Power Grid Corporation of India (up 2.42%), Wipro (up 1.98%), Bharti Infratel (up 1.69%), NTPC (up 0.28%), Hindustan Unilever (up 0.27%) and Bajaj Finserv (up 0.17%) advanced.

Vedanta (down 5.13%), JSW Steel (down 4.79%), Tata Motors (down 4.78%), Hindalco Industries (down 4.62%) and Bharti Airtel (down 3.88%) declined.

Bharti Airtel was down 3.79%, ahead of its Q1 result today.

Eicher Motor fell 0.38%. The consolidated net profit fell 21.59% to Rs 451.77 crore on 5.56% fall in total income to Rs 2523.17 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.

Zee Entertainment Enterprises (ZEEL) lost 4.54%. Essel Group announced that Invesco Oppenheimer Developing Markets Fund (hereafter referred to as "The Fund") has agreed to make an additional investment in ZEE Entertainment Enterprises (ZEEL). The Fund has agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs 4224 crore. Along with ZEEL, Essel Group is also in the process of divesting some of its non-media assets. The announcement was made after market hours yesterday, 31 July 2019.

UPL dropped 4.07%. The consolidated net profit fell 65.1% to Rs 178 crore on 86.63% rise in total income to Rs 7945 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.

Maruti Suzuki India rose 0.99% on bargain hunting. The stock fell 5.74% in the past three trading sessions to settle at Rs 5472.15 yesterday, 31 July 2019, from its close of Rs 5805.55 on 26 July 2019.

Meanwhile, the car major reported its monthly sales figures for the month of July 2019 during market hours today, 1 August 2019. The total sales (total domestic + export) of the company dropped 33.5% to 1.09 lakh units in July 2019 over July 2018. Total domestic sales (domestic + OEM) fell 35.1% to 1 lakh units while the total export sales declined by 9.4% to 9258 units in July 2019 over July 2018.

Bajaj Auto was down 0.19%. The auto major published its sales for the month of July 2019 during market hours today, 1 August 2019. The total sales of the company fell 5% to 3.81 lakh units in July 2019 over July 2018. The two-wheeler and three-wheeler manufacturing company's total domestic sales (motorcycles + commercial vehicles) witnessed a decline of 13% to 2.05 lakh units while the total exports (motorcycles + commercial vehicles) rose 8% to 1.76 lakh units in July 2019 over July 2018.

Overseas, shares in Europe and Asia were trading lower Thursday after remarks by Fed Chair Jerome Powell dampened expectations for further cuts going forward.

China's manufacturing activity contracted in July, according to results of a private survey released on Thursday. The Caixin/Markit factory Purchasing Managers' Index (PMI) was 49.9 in July, from 49.4 in June. PMI readings above 50 indicate expansion, while those below that level signal contraction.

US stocks closed sharply lower Wednesday with investors disappointed that the Federal Reserve cut interest rates in order to cushion the economy from the effects of President Trump's trade war with China, but refrained from suggesting further rate cuts were on the way.

The US Federal Reserve on Wednesday trimmed its benchmark fed funds interest rate by a quarter-point, citing muted inflationary pressures and the implications of global developments. The vote was 8-2. The reduction in the fed funds rate - the first since 2008 - drops it to a range of 2% to 2.25%.

At his press conference, Fed chair Jerome Powell added that the Fed has moved to a somewhat more accommodative stance as part of a mid-cycle adjustment as trade tensions seem to be having a significant effect on the economy and the global manufacturing slowdown is a bigger factor than expected last year.

Overnight US and Chinese delegates, including Trade Secretary Robert Lighthizer and Treasury Secretary Steven Mnuchin, reportedly concluded the first round of talks since the G-20 gathering in May without any substantive developments on the tariff front. The United States and China will resume negotiations in Washington in early September.

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