Market drops sharply as pivotals slide

Local stocks dropped sharply led by slide in ICICI Bank, Reliance Industries and ITC. The barometer index, the S&P BSE Sensex, lost 368.84 points or 1.02% at 35,656.70, as per the provisional closing data. The Nifty 50 index lost 119 points or 1.1% at 10,661.55, as per the provisional closing data. The Sensex settled below 36,000 mark while the Nifty fell below 10,700 mark.

Volatility struck bourses in early trade as the key benchmark indices sink in the red after opening in the positive zone. Key indices extended fall in morning trade. Fresh selling in index pivotals pulled the key benchmark indices lower in mid-morning trade. Stock staged a mild recovery in early afternoon trade after an intraday slide. Indices hovered in negative zone in afternoon trade. Key benchmark indices extended fall and hit fresh intraday low in mid-afternoon trade. Stocks cut losses in late trade.

The S&P BSE Mid-Cap index fell 1.84%. The S&P BSE Small-Cap index dropped 1.99%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 603 shares rose and 1956 shares fell. A total of 156 shares were unchanged.

Index heavyweight Reliance Industries lost 1.34% to Rs 1,229.60

Index heavyweight HDFC lost 1.47% to Rs 1,948.60

Index heavyweight ITC dropped 1.65% to Rs 274.65

Larsen & Toubro (L&T) gained 1.17%. On a consolidated basis, net profit of L&T rose 37.02% to Rs 2041.62 crore on 24.22% rise in net sales to Rs 35708.87 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours on Friday, 25 January 2019.

The company secured orders worth Rs 42233 crore at the group level during the quarter ended 31 December 2018. The current quarter witnessed delays in order awards due to deferment of select prospects in project businesses mainly in transportation infrastructure, heavy civil infrastructure and power business. International orders at Rs 11454 crore constituted 27% of the total order inflow.

The consolidated order book stood at Rs 284049 crore as at 31 December 2018, up by 5% over December 2017 position, registering a reasonable growth over a large base. International order book constituted 21% of the total order book vis-a-vis 25% recorded as of 31 December 2017, L&T said.

IndusInd Bank lost 3.1%. The bank announced during trading hours today, 28 January 2019, that that it has joined the first edition of the Mumbai Fintech Accelerator Programme' backed by the Government of Maharashtra and National Payments Corporation of India (NPCI) as a banking partner. With this, IndusInd Bank aims to partner with the State Government in its effort at making Mumbai a global fintech hub in the coming years. The accelerator programme aims to attract developers, start-ups, and techno-preneurs who would build and showcase technological prototypes across areas like Financial Inclusion, Public Payment Infrastructure and Government technology. The shortlisted participants have been selected by an eminent jury and will be mentored for 12 weeks by senior officials of IndusInd Bank to help them refine their business model. This partnership is in line with the Bank's effort at collaborating as well as nurturing young developers to build state-of-the-art technological solutions.

Overseas, Asian and European fell as caution over looming trade talks between Washington and Beijing displaced relief over the end of the partial US government shutdown.

China's industrial profit dropped for the second straight month in December. Profits of big Industrial companies fell 1.9% on year to 680.83 billion yuan ($100.94 billion) in December, said the National Bureau of Statistics on Monday. In November, industrial profits declined 1.8% from a year earlier.

US stocks gained ground on Friday in a broad-based rally as investors were heartened by news that Washington would move to temporarily end the longest US government shutdown in history.

US President Donald Trump and congressional leaders had reached a deal to reopen the federal government for three weeks while talks continue over Trump's demands for money to build a wall along the US border with Mexico. Trump announced the agreement to break the 35-day impasse as delays at airports and widespread disruptions heightened the urgency to end the partial shutdown.

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