Key indices languish in negative terrain

The stock market continued to languish in negative terrain in morning trade after a weak start amid a global sell-off. At 10:24 IST, the barometer index, the S&P BSE Sensex shed 439.27 points or 1.28% at 33,973.89. The Nifty 50 index slipped 139.60 points or 1.32% at 10,437.25. The Sensex was trading below the 34,000 level after falling below that level in early trade. Asian stocks tanked today after a rout on Wall Street overnight amid rising interest rates.

Among secondary indices, the S&P BSE Mid-Cap index fell 0.65%. The S&P BSE Small-Cap index shed 0.38%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was quite weak. On the BSE, 1,426 shares declined and 814 shares advanced. A total of 88 shares were unchanged.

Realty stocks were mixed. Godrej Properties (down 2.76%), HDIL (down 1.81%), Oberoi Realty (down 1.33%), Unitech (down 1.06%) and DLF (down 0.57%) edged lower. D B Realty (up 2.53%), Prestige Estates Projects (up 1.69%) and Sobha (up 1.22%) edged higher.

Indiabulls Real Estate rose 3.29% after the company scheduled a board meeting on 14 February 2018 to consider reorganization/ restructuring of businesses. The announcement was made after market hours yesterday, 8 February 2018.

Indiabulls Real Estate had on 17 April 2017 informed regarding reorganization/ restructuring of the existing residential and commercial office leasing businesses of the company.

Metal and mining stocks were mostly higher. Hindustan Zinc (up 3.24%), Nalco (up 2.51%), Tata Steel (up 1.68%), NMDC (up 1.46%), JSW Steel (up 0.34%) and Jindal Steel & Power (up 0.13%) edged higher. Hindalco Industries (down 1.1%) and Hindustan Copper (down 0.75%) declined.

Vedanta fell 0.43% after the company said that the Supreme Court of India vide judgement dated 7 February 2018 has directed to stop all mining operations in the state of Goa with effect from 16 March 2018. Supreme Court has directed that the mining lease holders who have been granted the second renewal is given time to manage their affairs and may continue their mining operations till 15 March 2018. However, they are directed to stop all mining operations with effect from 16 March 2018 until fresh mining leases and fresh environmental clearances are granted.

The company's mines in Goa will be impacted consequent to the judgement of Supreme Court. The company is assessing the financial and operational impact of the said judgement, Vedanta said. The announcement was made after market hours yesterday, 8 February 2018.

Steel Authority of India surged 6.62% after the company reported net profit of Rs 43.16 crore in Q3 December 2017 as compared to net loss of Rs 794.84 crore in Q3 December 2016. Total income rose 35.85% to Rs 15443.13 crore. The result was announced after market hours yesterday, 8 February 2018.

Overseas, Asian stocks tumbled after US stocks plummeted once again in the last session. China inflation as represented by the consumer price index (CPI) rose 0.6% month-on-month in January, well above the previous month's print of 0.3%, data released today, 9 February 2018 showed.

US stocks fell sharply yesterday, 8 February 2018 as strong earnings and economic data were not enough to quell investors' jitters on Wall Street about higher interest rates. US initial jobless claims decreased 9,000 to a seasonally adjusted 221,000 for the week ended 3 February, the Labor Department said yesterday, 8 February 2018. The second straight weekly decline in claims pointed to strong job growth momentum.

In the Europe, the Bank of England (BoE) yesterday, 8 February 2018 said it is likely to raise interest rates earlier and faster than previously expected to damp the effects of a stronger global economy on UK inflation. All nine members of the bank's Monetary Policy Committee agreed a statement that the central bank was no longer willing to tolerate inflation above its 2% target over the next three years, reports suggested.

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