Selling intensified as key benchmark indices hit fresh intraday low in mid-afternoon trade. At 14:21 IST, the barometer index, the S&P BSE Sensex, was down 74.75 points or 0.25% at 30,290.50. The Nifty 50 index was off 25.95 points, or 0.28% at 9,360.20. Sentiment was dampened by escalating Indo-Pak tensions. Most FMCG shares declined. Most auto stocks declined.
Media reports suggested that Pakistani fighter jets flew near the Siachen Glacier today, 24 May 2017, but Indian Air Force reportedly said there was no violation of India's air space. The report of Pakistani jets flying near Siachen came a day after the Indian Army announced that it had launched "punitive fire assaults" on Pakistani positions across the Line of Control (LoC) earlier this month, inflicting some damage.
The Sensex hit its lowest intraday level in more than one week in mid-afternoon trade. The Nifty hit its lowest intraday level in two weeks in afternoon trade. The Sensex fell 77.07 points, or 0.25% at the day's low of 30,288.18 in mid-afternoon trade, its lowest intraday level since 15 May 2017. The index rose 168.90 points, or 0.56% at the day's high of 30,534.15 in mid-morning trade. The Nifty fell 34.25 points, or 0.36%, at the day's low of 9,351.90 in afternoon trade, its lowest intraday level since 10 May 2017. The index rose 45.75 points, or 0.49% at the day's high of 9,431.90 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 1.26% . The BSE Small-Cap index was down 1.30%. 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. 1,991 shares declined and 625 shares rose. A total of 145 shares were unchanged.
Most FMCG shares declined. Britannia Industries (down 2.19%), Tata Global Beverages (down 1.73%), Dabur India (down 1.59%), Nestle India (down 1.09%), Procter & Gamble Hygiene & Health Care (down 0.69%), GlaxoSmithKline Consumer Healthcare (down 0.62%), Marico (down 0.51%), Godrej Consumer Products (down 0.29%) and Bajaj Corp (down 0.04%), edged lower. Jyothy Laboratories (up 0.20%), Colgate Palmolive (India) (up 1.26%) and Hindustan Unilever (up 1.46%), edged higher.
Most auto stocks declined. Ashok Leyland (down 2.84%), Mahindra & Mahindra (down 1.47%), Bajaj Auto (down 1.33%), Hero MotoCorp (down 0.6%), Eicher Motors (down 0.56%), Maruti Suzuki India (down 0.27%) and TVS Motor Company (down 0.08%), edged lower. Escorts was up 1.35%.
Tata Motors was up 3.93%. after the company reported better than expected Q4 results. The result was declared after market hours yesterday, 23 May 2017.
Tata Motors' consolidated net profit fell 16.79% to Rs 4336 crore on 2.86% fall in revenues to Rs 77272 crore in Q4 March 2017 over Q4 March 2016. Consolidated profit and revenue in Q4 was lower due to translation impact from Pound to Indian Rupee. Consolidated profit before tax shed 12.26% to Rs 5166 crore in Q4 March 2017 over Q4 March 2016. This broadly reflects strong retail sales in Jaguar Land Rover business on continued strong demand for the product and also higher wholesale volumes partially offset by overall higher marketing expenses and higher depreciation and amortization, company said.
Overseas, European stocks were trading lower after China's rating was downgraded by Moody's and as markets were still recovering from the Manchester bombing.
Most Asian shares were trading higher as investors looked ahead to US Federal Reserve views on interest rate hike prospects and await an upcoming OPEC meeting. Investors are awaiting the release of minutes from the Fed from its previous meeting for details on the probability of a rate hike in June.
China's Shanghai Composite bounced back from intraday low and settled higher by 0.06%. Moody's Investors Service downgraded China's credit rating to A1 from Aa3, changing its outlook to stable from negative, citing concerns efforts to support growth will spur debt growth across the economy.
In US, shares closed higher yesterday, 23 May 2017, marking a fourth straight session in the green following the White House's release of its 2018 budget proposal. On the economic data front, US flash PMI reading for services and manufacturing for May were mixed. Manufacturing PMI dipped to an 8-month low, while services PMI rose to a 4-month high.
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