Market drops in early trade on negative global cues

Domestic stocks nudged lower in early trade on negative global cues weighed by escalation in tensions between the US and North Korea. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 153.47 points or 0.48% at 31,644.37. The Nifty index was down 41.55 points or 0.42% at 9,866.50. Today's fall was led by L&T, ICICI Bank and ITC.

The S&P BSE Mid-Cap index was down 0.49%. The S&P BSE Small-Cap index was down 0.43%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 753 shares declined and 383 shares rose. A total of 41 shares were unchanged.

Overseas, Asian stocks were trading lower as investors continued to take risks off the table even as American officials tried to ease concerns amid an escalation in tensions between the US and North Korea.

US stocks closed lower yesterday, 9 August 2017 as tensions between North Korea and the US added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results.

In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn't halt its threats.

On the Federal Reserve front, Chicago Fed President Charles Evans said he supported starting a reduction of the central bank's $4.5 trillion balance sheet in September but was ambivalent about another rate hike this year.

Back home, L&T (down 1.04%), ICICI Bank (down 0.64%) and ITC (down 0.5%) edged lower from the Sensex pack.

Tata Motors dropped 4.16%. The company's consolidated net profit rose 41.59% to Rs 3200 crore on 9.92% drop in revenue to Rs 58651 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017. Revenue was lower due to translation impact from Pound to Rupee.

The operating performance broadly reflects lower wholesale volumes for Jaguar Land Rover business excluding the China joint venture, and continuation of higher competitive incentive levels and launch and growth costs seen in FY 2017. In standalone business, a significant de-growth in the medium & heavy commercial vehicles (M&HCV) segment, flat light commercial vehicles (LCV) segment and moderate growth in passenger vehicle segment was seen.

Aurobindo Pharma surged 4.14%. The company's consolidated net profit fell 11.4% to Rs 518.51 crore on 2.3% decline in net sales to Rs 3621.07 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

Eicher Motors fell 0.86%. The company's consolidated net profit rose 22.1% to Rs 459.62 crore on 28.5% growth in net sales to Rs 1991.78 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

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