Market declines in early trade

Key benchmark indices edged lower in early trade tracking weakness in global stocks. At 9:16 IST, the barometer index, the S&P BSE Sensex, was down 407.80 points or 1.16% at 34,658.95. The Nifty 50 index declined 172.30 points or 1.6% at 10,588.30. The Sensex slipped below the 35,000 level. Global stocks declined after a stronger-than-expected US jobs report sent bond yields higher.

Among the secondary indices, the S&P BSE Mid-Cap index declined 2.59%. The S&P BSE Small-Cap index lost 2.74%. Both these indices underperformed the Sensex.

Overseas, Asian stocks edged lower following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services purchasing managers' index (PMI) increased to 51.9 in January from 51.2 in December 2017.

China's Caixin services PMI rose to 54.7 in January from December's 53.9, expanding at its fastest pace in almost six years, data released today, 5 February 2018 showed. The 50-mark separates growth from contraction on a monthly basis.

US stocks fell sharply on Friday, 2 February 2018 on surging bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.

Closer home, the breadth, indicating the overall health of the market, was weak. On the BSE, 1,452 shares fell and 151 shares rose. A total of 47 shares were unchanged.

Bharti Airtel was down 1.3% at Rs 416.30. The company announced today, 5 February 2018 that Singapore Telecommunications (Singtel), Asia's leading communications and ICT solutions group and a long term partner of Airtel, will invest Rs 2649 crore in Bharti Telecom (Bharti Telecom), the promoter company of Airtel through preferential allotment of shares. The transaction is subject to the shareholders' approval of Bharti Telecom. The funds raised will be used towards debt reduction.

With this investment, Singtel's total stake (along with its affiliates) in Bharti Telecom will increase to 48.9%. Singtel currently holds 47.17% stake in Bharti Telecom. Bharti Enterprises continues to hold over 50% stake in Bharti Telecom. The announcement was made before market hours today, 5 February 2018.

Bosch declined 0.24% at Rs 19,297.65. The company is scheduled to announce October-December 2017 quarterly results today, 5 February 2018.

Tata Motors rose 0.59% at Rs 386.30. The company is scheduled to announce October-December 2017 quarterly results today, 5 February 2018.

On the macro front, Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in January 2018 at 10:30 IST today, 5 February 2018. The Nikkei Services PMI in India jumped to 50.9 in December of 2017 from 48.5 in the prior month.

Among other data, as per preliminary reports received from the states, the total area sown under Rabi crops as on 2 February 2018 stands at 632.34 lakh hectares as compared to 641.72 lakh hectare this time in 2017, as per the data released by the government after market hours on Friday, 2 February 2018.

Minister of Railways and Coal Piyush Goyal in a written reply to a question in Rajya Sabha on Friday, 2 February 2018 stated that the supply of coal to the power sector has risen to 210.3 million tonnes (MT) in the first six months of this fiscal against 195.2 MT during the corresponding period of 2016-17 thus recording growth of 7.74% (provisional).

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