Market drops on weak global cues; breadth positive

Key benchmark indices are trading lower in early trade on selling pressure in index pivotals. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 210.61 points or 0.4% at 52,342.79. The Nifty 50 index was down 68.65 points or 0.44% at 15,683.75. Mounting concerns about the rapidly surging delta variant of the Coronavirus in several countries weighed on the sentiment. Asian stocks are trading lower.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.07%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1224 shares rose and 1146 shares fell. A total of 101 shares were unchanged.

Stocks in news:

HCL Technologies lost 1.83%. HCL Technologies' consolidated net income rose 8.5% to Rs 3214 crore on 2.2% rise in total income to Rs 20068 crore in Q1 June 2021 over Q4 March 2021.

ACC jumped 4.9%. ACC's consolidated net profit soared 110.17% to Rs 569.45 crore on 49.29% surge in total revenue from operations to Rs 3,884.94 crore in Q2 June 2021 over Q2 June 2020.

Tata Steel fell 0.48%. Jindal Stainless rose 0.28%. Tata Steel Mining (TSML) and Jindal Stainless (JSL) signed a MoU on July 16, 2021 to jointly unearth the Chrome Ore locked up in the boundary between their mines located in Sukinda of Jajpur district, Odisha. Tata Steel Mining (TSML, formerly known as TS Alloys) is a 100% subsidiary of Tata Steel.

IndusInd Bank fell 0.87%. IndusInd Bank said that a meeting of the board of directors of the bank is scheduled to be held on Friday, July 23, 2021, to consider the proposal of raising funds through various modes.

City Union Bank fell 0.66%. City Union Bank said the board of directors of the bank approved raising further capital through QIP route to the tune of Rs 500 crore (including premium).

Zen Technologies jumped 7.86%. Zen Technologies was awarded a Rs 120-crore export contract. The simulators are the main focus of the order. The order will be carried out in roughly a year.

Global Markets:

Overseas, Asian stocks are trading lower on Tuesday following an overnight tumble for stocks on Wall Street and concerns about the spread of the delta coronavirus variant. Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.

On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans the one-year Loan Prime Rate (LPR) held steady at 3.85% while the five-year LPR was also left at 4.65%.

Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities -- including the sprawling Microsoft Exchange hack earlier this year.

U.S. stocks dropped sharply on Monday on concern a rebound in Covid cases would slow global economic growth. Covid cases have rebounded in the U.S. this month, with the delta variant spreading among the unvaccinated. Cases were already flaring up around the world because of the delta variant.

Back home, key equity indices ended with sharp losses on Monday, tracking weak global cues. The S&P BSE Sensex, dropped 586.66 points or 1.10% at 52,553.40. The Nifty 50 index slipped 171 points or 1.07% at 15,752.40.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,198.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,047.66 crore in the Indian equity market on 19 July, provisional data showed.

Powered by Capital Market - Live News