Market registers losses on weak global cues

The stock market closed the last trading session of the week with strong losses, weighed by weak global stocks. The barometer index, the S&P BSE Sensex fell 373.78 points or 1.09% at 34,039.38, as per the provisional closing data. The Nifty 50 index declined 114.15 points or 1.08% at 10,462.70, as per the provisional closing data. The Sensex provisionally closed a tad above the 34,000 level after flirting with that level in intraday trade.

Market sentiment was negative amid weakness in European and Asian stocks after a rout on Wall Street overnight amid rising interest rates. Banking, finance and telecom stocks declined. Index heavyweight HDFC and software major Infosys dropped. Metal stocks bucked trend.

Among secondary indices, the S&P BSE Mid-Cap index provisionally fell 0.09%. The S&P BSE Small-Cap index provisionally advanced 0.23%. Both these indices outperformed the Sensex.

Key indices had opened today's session on a shaky note on weak global cues. Indices languished in negative terrain within a small range throughout the session.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,428 shares advanced and 1,348 shares declined. A total of 134 shares were unchanged.

The total turnover on BSE amounted to Rs 4026.95 crore, compared with the turnover of Rs 5558.02 crore registered during the previous trading session.

Telecom and telecom tower infrastructure stocks dropped. Bharti Infratel was down 2.31%, Idea Cellular fell 2.28% and Bharti Airtel dropped 1.19%. Reliance Communications, however, was up 1.51%.

Index heavyweight and housing finance major HDFC declined 2.03% at Rs 1,775.

Software major Infosys slipped 1.94% at Rs 1,112.50.

HPCL was down 1.87% at Rs 393. The company's net profit rose 22.59% to Rs 1949.69 crore on 13.27% growth in income from operations to Rs 62831.71 crore in Q3 December 2017 over Q3 December 2016. The results were announced during market hours today, 9 February 2018.

Overseas, European stocks dropped as investors geared up for earnings, while keeping an eye on the turbulence seen across markets worldwide. The Bank of England (BoE) yesterday, 8 February 2018 said it is likely to raise interest rates earlier and faster than previously expected to damp the effects of a stronger global economy on UK inflation. All nine members of the bank's Monetary Policy Committee agreed a statement that the central bank was no longer willing to tolerate inflation above its 2% target over the next three years, reports suggested.

Asian stocks tumbled after US stocks plummeted once again in the last session. China inflation as represented by the consumer price index (CPI) rose 0.6% month-on-month in January, well above the previous month's print of 0.3%, data released today, 9 February 2018 showed.

US stocks fell sharply yesterday, 8 February 2018 as strong earnings and economic data were not enough to quell investors' jitters on Wall Street about higher interest rates. US initial jobless claims decreased 9,000 to a seasonally adjusted 221,000 for the week ended 3 February, the Labor Department said yesterday, 8 February 2018. The second straight weekly decline in claims pointed to strong job growth momentum.

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