Realty, aviation stocks slide

Key benchmark indices extended fall and hit fresh intraday low in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 83.31 points or 0.24% at 35,093.11. The Nifty 50 index was down 32.80 points or 0.31% at 10,685.25. Realty stocks dropped. Aviation stocks dropped sharply after weak Q4 result from InterGlobe Aviation. Negative Asian stocks weighed on the domestic bourses.

Domestic stocks were trading with small losses in early trade on negative Asian stocks.

The S&P BSE Mid-Cap index was down 0.62%. The S&P BSE Small-Cap index was down 0.66%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,381 shares fell and 619 shares rose. A total of 78 shares were unchanged.

Overseas, Asian stocks fell after the Federal Reserve reiterated plans to continue raising rates gradually amid firming inflation. Japan markets are closed for a four-day holiday weekend. US stocks fell yesterday, 2 May 2018 as investors assessed the US Federal Reserve's signal that it's in no rush to raise rates even as inflation rises to its target.

The Federal Reserve on Wednesday kept a key US interest rate steady, saying that while inflation has moved higher, it's likely to run near the central bank's 2% target in the coming months. The central bank maintained its fed funds at a range of 1.5%-1.75%. In its statement, the Fed noted the latest readings that show both overall and core inflation have moved close to the central bank's 2% goal. Fed officials were split between whether to raise rates three or four times this year.

Back home, Hindustan Unilever (down 1.8%), Wipro (down 1.49%) and L&T (down 1.21%) edged lower from the Sensex pack.

Realty stocks dropped. DLF (down 1.55%), Indiabulls Real Estate (down 2.57%), Housing Development and Infrastructure (down 2.1%), D B Realty (down 3.3%), Unitech (down 4.5%), Sobha (down 1.03%), Godrej Properties (down 1.16%) and Oberoi Realty (down 2.75%) fell. Prestige Estates Projects (up 0.47%) rose.

Aviation stocks dropped sharply after weak Q4 result from InterGlobe Aviation. SpiceJet (down 7.13%) and Jet Airways (India) (down 5.2%) declined.

InterGlobe Aviation slumped 13.01% after net profit dropped 73.3% to Rs 117.64 crore on 19.6% increase in net sales to Rs 5799.11 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 2 May 2018.

The company's EBITDAR (earnings before finance income and cost, tax, depreciation, amortization and aircraft and engine rentals) fell 21.9% to Rs 1132.10 crore in Q4 March 2018 over Q4 March 2017. EBITDAR margin for the quarter fell to 19.5% from 29.9% in the same period last year.

Profits were lower during the quarter compared to the same period last year primarily because of increase in fuel prices, decline in yields and foreign exchange impact.

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