IT, metal stocks edge lower

A bout of volatility was witnessed as key benchmark indices trimmed losses after extending intraday slide in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex was down 263.05 points or 1.07% at 24,275.95. The 50-unit Nifty 50 index was currently off 83.80 points or 1.12% at 7,371.75. Weakness in global stocks hit sentiment on the domestic bourses adversely. The broad market depicted weakness

The Sensex lost 292.06 points or 1.19% at the day's low of 24,246.94 in mid-morning trade, its lowest level since 22 January 2016. The index lost 145.23 points or 0.59% at the day's high of 24,393.77 at the onset of the trading session. The Nifty lost 92.90 points or 1.24% at the day's low of 7,362.65 in mid-morning trade, its lowest level since 22 January 2016. The index lost 49.45 points or 0.66% at the day's high of 7,406.10 at the onset of the trading session.

 

Meanwhile, the outcome of a monthly survey showed that growth in India's services sector accelerated last month. The seasonally adjusted Nikkei India services purchasing managers' index (PMI) hit a 19-month high at 54.3 in January 2016. The Services PMI rose from December's reading of 53.6. Amid forecasts of further improvements in demand and favourable government policies, service providers in India expect output to continue to increase over the course of the next year. Additionally, the degree of optimism registered in January was the most pronounced in six months, Markit Economics said.

In overseas stock markets, Chinese and Japanese stocks led decline in Asian equities as a steep drop in crude prices rekindled concerns that global growth is slowing. In Japan, the Nikkei Stock Average was currently off 3.3%. In mainland China, the Shanghai Composite index was currently off 1.18%. In Hong Kong, the Hang Seng index was currently off 2.73%. US stocks closed sharply lower yesterday, 2 February 2016, as investors unloaded energy and financial stocks amid a selloff in crude-oil futures.

Closer home, the broad market depicted weakness. There were more than five losers against every gainer on BSE. 1,800 shares declined and 359 shares rose. A total of 64 shares were unchanged. The BSE Mid-Cap index was currently off 1.6%. The BSE Small-Cap index was currently off 2.14%. The losses for both these indices were higher in percentage terms than those for the Sensex.

IT stocks declined. Oracle Financial Services Software (down 2.23%), Tech Mahindra (down 1.56%), Wipro (down 1.32%), Infosys (down 1.18%), HCL Technologies (down 1.25%) and TCS (down 0.8%) edged lower.

Metal and mining stocks declined. Jindal Steel & Power (down 4.24%), Vedanta (down 3.24%), Hindalco Industries (down 1.75%), Hindustan Zinc (down 1.25%), NMDC (down 0.51%), Tata Steel (down 0.3%), National Aluminium Company (down 0.15%) and Steel Authority of India (down 0.13%) edged lower. JSW Steel (up 1.55%) edged higher.

Tata Communications tumbled 5.64% at Rs 381.75 after consolidated net profit fell 79.83% to Rs 21.89 crore on 3.8% growth in net sales to Rs 5099.49 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 2 February 2016. The non-operational income or the so called other income fell sharply during the quarter. The other income slumped 89.7% to Rs 10.74 crore in Q3 December 2015 over Q3 December 2014.

DLF rose 2.14% at Rs 95.35 after consolidated net profit rose 24.4% to Rs 163.95 crore on 43.3% rise in total income to Rs 2980.73 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 50% to Rs 1379 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 2 February 2016.

DLF said that Q3 December 2015 bottomline includes a one-time gain on account of sale of land by DLF Home Developers to two joint venture companies formed with GIC, Singapore's sovereign wealth fund. It also includes revision in construction budgets, primarily due to fundamental specifications upgrade and reassessment of cost to completion, the company said.

Bayer CropScience fell 2.71% at Rs 3,368.85 after net profit declined 50.18% to Rs 27.40 crore on 9.46% decline in net sales to Rs 622.20 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 2 February 2016.

Powered by Capital Market - Live News