Market drops sharply on broadbased sell-off

Key benchmark indices dropped sharply on last trading day of the week by index heavyweights Reliance Industries, Infosys and State Bank of India. The barometer index, the S&P BSE Sensex, lost 316.41 points or 0.95% at 32,832.94, as per the provisional closing data. The Nifty 50 index lost 104.75 points or 1.02% at 10,121.80, as per the provisional closing data. The Sensex provisionally settled below the psychological 33,000 mark after sliding below that level in mid-afternoon trade. Realty stocks dropped.

Key benchmark indices edged higher in early trade boosted by data showing India's economic growth has bounced back in the July-September quarter boosted sentiment. Stocks hovered in positive zone in morning trade. A bout of volatility was witnessed in mid-morning trade as key benchmark indices reversed intraday gains to hit intraday low in negative zone. A bout of volatility was witnessed as key benchmark indices swung between gains and losses in afternoon trade. Fresh selling dragged the key benchmark indices to fresh intraday low in mid-afternoon trade .

The S&P BSE Mid-Cap index provisionally fell 0.95%, matching the Sensex's fall in percentage terms. The S&P BSE Small-Cap index provisionally fell 1.16%. The fall in this index 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, 1,649 shares declined and 1,038 shares rose. A total of 155 shares were unchanged. Breadth was strong till afternoon trade.

Index heavyweight Reliance Industries lost 1.22% to Rs 911.30.

Realty stocks dropped. DLF (down 3.73%), Indiabulls Real Estate (down 0.99%), Housing Development and Infrastructure (down 4.47%), D B Realty (down 1.99%), Unitech (down 0.97%), Sobha (down 5.11%), Godrej Properties (down 1.34%), Prestige Estates Projects (down 0.92%) and Oberoi Realty (down 2.37%) fell.

Vimta Labs was locked at 20% upper circuit at Rs 163.50 after net profit jumped 99.53% to Rs 4.33 crore on 14.07% growth in total revenue to Rs 43.12 crore in Q2 September 2017 over Q2 September 2016. The result was announced during market hours today, 1 December 2017.

On the macro front, the Nikkei India Manufacturing Purchasing Managers' Index rose to 52.6 in November from 50.3 in October. This indicated a substantial improvement of operating conditions in India's manufacturing sector. At the broad market group level, growth in consumer and intermediate goods offset a marginal deterioration in investment goods category. The data was released during market hours today, 1 December 2017.

India's gross domestic product (GDP) growth recovered to 6.3% in quarter ended September 2017 from low of 5.7% recorded in the previous quarter ended June 2017. Quarterly GVA at basic price at constant (2011-12) prices improved 6.1% in Q2 of 2017-18, showing improvement in growth from 5.6% in Q1 of 2017-18. The GDP growth stood at 6% in April-September 2017, compared with 7.7% recorded in the corresponding period last year. The data was released by government after market hours yesterday, 30 November 2017.

The Eight Core Industries comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP) recorded 4.7% growth in its output in October 2017 over October 2016. Its cumulative growth was 3.5% during April to October 2017-18. The data was announced after market hours yesterday, 30 November 2017.

Overseas, European stocks nudged lower as manufacturing data from China disappointed and investors awaited the Senate's vote on US tax reform legislation. Most Asian stocks settled higher buoyed by record highs in US equities.

Growth in China's manufacturing sector slowed in November, according to a private gauge. The Caixin China manufacturing purchasing managers' index fell to 50.8 in November, its lowest level in five months, from 51 in October, Caixin Media Co. and research firm Markit said today, 1 December 2017.

US stocks rallied yesterday, 30 November 2017 with the Dow finishing above 24,000 for the first time in history, as investors grew more optimistic about the prospects for a tax overhaul out of Washington.

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