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Indices languish in the red

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Key indices continued to languish in the red in afternoon trade as weakness in most of the global stocks weighed on sentiment. At 13:20 IST, the barometer index, the S&P Sensex, was down 173.58 points or 0.54% at 32,100.09. The index was down 50.20 points or 0.5% at 10,007.20.

Intraday volatilty was high on the bourses. The was currently trading above the psychological 32,000 level after having dropped below that level in morning trade. The also reclaimed the psychological 10,000 level having fallen below that level in morning trade.

Key indices traded with small gains in early trade led by turnaround Q1 results by steel giant Tata Steel and select auto stocks. A sudden sell-off gripped bourses in morning trade led by slide in index heavyweights ITC, HDFC Bank and Reliance Industries. Stocks cut losses in mid-morning trade and languished in the red later during the session.

The S&P Mid-Cap index was off 0.56%. The S&P Small-Cap index was off 0.62%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,819 shares declined and 606 shares rose. A total of 104 shares were unchanged.

IT stocks declined for the second straight day. HCL Technologies (down 0.6Infosys (down 0.72%), Tech Mahindra (down 2%), Oracle Financial Services Software (down 1.03%), MphasiS (down 1.81%) and Wipro (down 0.45%) edged lower. %), TCS rose 0.06%.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 0.3%), Ashok Leyland (up 2.56%), and Eicher Motors (up 0.24%) gained. Maruti Suzuki India (down 0.31%), Hero MotoCorp (down 0.09%), and TVS Motor Company (down 0.18%) declined.

Tata Motors dropped 0.51%. The Tata Motors Group global wholesales including Jaguar Land Rover, rose 12% at 98,534 units in July 2017 over July 2016. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 5% at 32,026 units in July 2017 over July 2016. Global wholesales of all passenger vehicles rose 15% at 66,508 units in July 2017 over July 2016. The announcement was made during market hours today, 8 August 2017.

Bajaj Auto rose 1.08% after Triumph motorcycles and Bajaj announced their global partnership. The announcement was made during market hours today, 8 August 2017. The objective of this non-equity partnership is to deliver a range of outstanding mid-capacity motorcycles benefiting from the collective strengths of both companies.

The companies hope to bring to bear upon the individual strengths of the partners including brand position & perception, design & development technology, quality & cost competitiveness & worldwide distribution. This new global partnership will enable Triumph to significantly expand its global reach by entering new higher volume market segments, especially within the emerging markets across the world.

Bajaj will gain access to the iconic Triumph brand, and its great motorcycles, enabling it to offer a wider range of motorcycles within its domestic market and other international markets. Triumph and Bajaj are excited by the opportunities of this partnership and the prospect of entering new market segments, thereby reaching a whole new group of motorcyclists across the world. The company will provide further details in due course.

Meanwhile, the GST Council yesterday, 7 August 2017, announced considering the issue of cess leviable on motor vehicles on 5th of August 2017 and recommended that Central Government may move legislative amendments required for increasing the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15%. However, the decision on when to raise the actual cess leviable on the same will be taken by the GST Council in due course.

Tata Power Company declined 1.25%. The company said that Tata Power Skill Development Institute (TPSDI) plans to train over 54,000 people by 2020. The announcement was made during market hours today, 8 August 2017.

Overseas, European stocks edged lower in early trade extending losses from a subdued start to the week as miners came under pressure while results weighed on Pandora, IHG and Standard Life. Germany's trade surplus widened slightly in June, though both imports and exports declined. According to data adjusted for seasonal and calendar effects, exports from Germany declined by 2.8% on the month in June. The adjusted trade surplus stood at EUR21.2 billion, just above the EUR20.3 billion recorded in the previous month.

Asian stocks took a breather as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth. China's export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from an 11.3% rise in June, official data showed on Tuesday. Imports rose 11%, the slowest growth since December and down from a 17.2% rise in the previous month. That left the country with a trade surplus of $46.74 billion for the month, the highest since January, above June's $42.77 billion.

US stocks closed higher yesterday, 7 August 2017 with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine with consumer staples and technology shares leading on the day. The Dow Jones Industrial Average rose 25.61 points, or 0.1%, to a new closing record of 22,118.42. The S&P 500 rose 4.08 points to 2,480.9, a rise of 0.2%. The Nasdaq Composite Index climbed 32.21 points, or 0.5%, to 6,383.77.

US Fed speaker St. Louis Fed President James Bullard said the level of short-term interest rates was fine, and that the current level of the policy rate is likely to remain appropriate over the near term

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 08 2017. 13:14 IST