Sensex, Nifty slide on weak global cues

Domestic stocks settled with modest losses on weak global cues. Today's slide on the bourses was led by State Bank of India, ICICI Bank and Reliance Industries. The Sensex settled a tad above 39,500 level. The Nifty settled below 11,900 mark. Key indices snapped three-day rising streak.

The barometer index, the S&P BSE Sensex, fell 247.68 points or 0.62% to 39,502.05. The index hit high of 39,767.93 and low of 39,420.50 during the day.

The Nifty 50 index fell 67.65 points or 0.57% to 11,861.10. The index hit high of 11,931.90 and low of 11,836.80 during the day.

Among secondary barometers, the BSE Mid-Cap index fell 0.83%. The BSE Small-Cap index fell 0.57%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1061 shares rose and 1503 shares fell. A total of 160 shares were unchanged.

State Bank of India (down 3.29%), Tata Steel (down 2.76%), ICICI Bank (down 2.67%), Tata Motors (down 2.46%) and ONGC (down 2.03%) were the major Sensex losers.

TCS (up 1.78%), HCL Technologies (up 1.17%), Power Grid Corporation of India (up 0.48%) and Hindustan Unilever (up 0.27%) edged higher from the Sensex pack.

Index heavyweight Reliance Industries fell 0.96% to Rs 1,313.25

Sun Pharmaceutical Industries rose 2.41%. The company's consolidated net profit dropped 52.63% to Rs 635.88 crore on 2.27% rise in total income to Rs 7445.45 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 28 May 2019.

Sun Pharmaceutical Industries said that consolidated net profit was Rs 636 crore with resulting net profit margin at 9% in Q4 March 2019. This is not comparable with Q4 March 2018 due to the one-time impact of distribution change for India business in Q4 March 2019 as well as the one-time tax benefit of Rs 259 crore in Q4 March 2018.

Sun Pharmaceutical Industries consolidated sales / income from operations rose 5% to Rs 7044 crore in Q4 March 2019 over Q4 March 2018. Sales for Q4 March 2019 include a one-time impact of approximately Rs 1085 crore related to the change in distribution for India business. Consolidated sales, adjusted for this one-time impact, rose 21% to Rs 8129 crore in Q4 March 2019 over Q4 March 2018.

Auto major Mahindra & Mahindra (M&M) rose 0.25% after the company announced Q4 result during trading hours today, 29 May 2019. Mahindra & Mahindra (M&M) said combined profit from ordinary activities after tax (after EI) fell 16% to Rs 969 crore in Q4 March 2019 over Q4 March 2018. Combined revenues and other income rose 5% to Rs 14055 crore. Combined operating profit margin (OPM) was reported at 13.5% in Q4 March 2019, lower than 15.1% in Q4 March 2018.

The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.

M&M said that the muted demand in rural India on account of poor distribution of south west monsoon, a deficit north east monsoon and weak agricultural incomes due to poor price realization, stress in the NBFC sector leading to tight credit conditions along with low demand in urban India and the overall sluggishness in the economy led to a fall in both the tractor and automotive industry during Q4 March 2019.

Car major Maruti Suzuki India fell 2.33%. The company announced today that it recently laid the foundation stone for a 5 MW Solar Power plant at the Gurugram facility. The captive Solar Power plant is expected to be commissioned in FY 2019-20. The company will invest around Rs 24 crore, and will offset Co2 emissions to the tune of over 5390 tonnes annually, for the next 25 years. This is the second grid based Solar Power plant for Maruti Suzuki. The 1st Solar Power plant was set up in 2014 at Manesar, with 1 MW capacity. In 2018, this solar power plant was further expanded to 1.3 MW.

NMDC gained 0.54% after net profit rose 31.46% to Rs 1453.77 crore on 5.27% fall in total income to Rs 3839.40 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 28 May 2019.

Galaxy Surfactants surged 8.22% after consolidated net profit rose 42.64% to Rs 57.10 crore on 6.25% rise in total income to Rs 685.48 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 28 May 2019.

IRCON International lost 5.48% after net profit dropped 55.8% to Rs 95.59 crore on 2.1% rise in total income to Rs 1606.32 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 28 May 2019.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.83, compared with its close of 69.69 during the previous trading session.

Overseas, European shares were trading lower amid worries over the US-China trade war and a potential budget standoff between Italy and the EU. Fears of a coming political battle between Rome and Brussels returned this week as reports emerged stating the EU is considering disciplinary action over the Italian government's failure to rein in debt.

Asian stocks fell on worries over the outlook for global growth with trade tensions between US and China showing no signs of waning.

In US, shares fell on Tuesday as investors watched for developments on the US-China trade front. President Donald Trump, speaking at a joint news conference Monday in Tokyo with Japanese Prime Minister Shinzo Abe, reportedly said the US was not ready to make a trade deal with China.

A decline in interest rates also sparked worries about a possible slowdown in the US economy. The yield on the benchmark 10-year note fell to around 2.26%, the lowest level since September 2017. That put it below the 2.35% yield on the three-month Treasury bill. Yields move inversely to prices.

Powered by Capital Market - Live News