Sensex drops below 34,000

Key benchmark indices edged lower in early trade on negative Asian stocks. At 9:27 IST, the barometer index, the S&P BSE Sensex, was down 226.49 points or 0.66% at 33,907.89. The Nifty 50 index was down 60.60 points or 0.59% at 10,184.65. The Sensex dropped below the psychological 34,000 level in opening trade.

The S&P BSE Mid-Cap index was down 0.52%. The S&P BSE Small-Cap index was down 0.6%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 396 shares rose and 906 shares fell. A total of 44 shares were unchanged.

Overseas, Asian stocks were trading lower ahead of a slew of key earnings reports this week. Most US equities fell yesterday, 22 October 2018, with financial and commodity shares pacing losses.

Risks still abound across global markets, from the continuing US-China trade showdown to Italian budget fears and President Donald Trump's unpredictable actions ahead of American midterm elections.

Back home, Adani Ports & Special Economic Zone rose 1.19% ahead of its September quarterly result today, 23 October 2018.

Ambuja Cements dropped 2.94% ahead of its September quarterly result today, 23 October 2018.

HCL Technologies fell 1.32% ahead of its September quarterly result today, 23 October 2018.

Asian Paints lost 5.24%. On a consolidated basis, Asian Paints' net profit fell 14.77% to Rs 506 crore on 8.76% increase in net sales to Rs 4639.05 crore in Q2 September 2018 over Q2 September 2017. The result was announced after market hours yesterday, 22 October 2018.

K.B.S. Anand, managing director & CEO, Asian Paints said that the decorative business segment in India registered a low double digit volume growth. Raw material prices continued to move up further which led the company to take a price increase from October 2018. The automotive coatings JV (PPG-AP), witnessed good growth in the general industrial business segment, while the industrial coatings JV (AP-PPG) continued to witness good growth in the protective coatings - dealer segment and the powder segment.

In the International operations, business conditions continued to remain challenging with issues like forex unavailability, high inflation and difficult economic conditions impacting performance. Both the segments in the home improvement category viz. the kitchen (Sleek) and bath (ESS ESS) business, performed well in the quarter, he added.

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