The stock market languished in negative zone in the morning trade after a weak opening amid global sell-off of equities. At 10:17 IST, the barometer index, the S&P BSE Sensex was down 1,175.74 points or 3.38% at 33,581.42. The Nifty 50 index slumped 356.95 points or 3.35% at 10,309.60. The Sensex nosedived below 34,000 level at the opening trade. Global equities tumbled as interest rates in US headed higher amid concerns of returning inflation.
Among secondary indices, the S&P BSE Mid-Cap index tumbled 4.36%. The S&P BSE Small-Cap index fell 4.48%. Both these indices underperformed the Sensex.
Overseas, Asian stocks tanked following a sharp sell-off on Wall Street. US stocks tumbled yesterday, 5 February 2018 as interest rates headed higher amid concerns of returning inflation.
Closer home, the broad market depicted weakness. There were more than 14 losers against every gainer on BSE. 2,134 shares declined and 146 shares advanced. A total of 76 shares were unchanged.
Auto stocks tumbled in a weak market. Ashok Leyland (down 4.25%), Maruti Suzuki India (down 3.34%), Eicher Motors (down 3.1%), Mahindra & Mahindra (down 2.98%) and Bajaj Auto (down 1.99%) edged lower.
Tata Motors tumbled 7.08%. The company's consolidated net profit surged 988.6% to Rs 1214.60 crore on 16% growth in net sales to Rs 74156.07 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 5 February 2018.
Tata Motors and Warburg Pincus mutually decide to call off the transaction in Tata Technologies. As per the transaction announced on 15 June 2017, Warburg Pincus was to acquire approximately 43% stake in Tata Technologies from Tata Motors and other Tata entities. However, due to delays in securing regulatory approvals as well as due to the recent performance of the company not meeting internal thresholds because of market challenges, the parties to the transaction have mutually decided not to proceed with closure of the transaction. Tata Motors will continue to explore strategic options to sell its stake in Tata Technologies and remains positive on the outlook of the business.
Hero MotoCorp declined 3.02%. The company is scheduled to announce Q3 December 2017 results today, 6 February 2018.
Pharma stocks fell. Alkem Laboratories (down 4.69%), Divi's Laboratories (down 3.27%), Glenmark Pharmaceuticals (down 2.95%), Aurobindo Pharma (down 2.34%) and Dr Reddy's Laboratories (down 1.62%) declined.
Lupin fell 3%. The company is scheduled to announce Q3 December 2017 results today, 6 February 2018.
Sun Pharmaceutical Industries (Sun Pharma) fell 2.08%. With regard to media news titled 'Fire at Sun Pharma's Ankleshwar plant, company says no casualties', Sun Pharma said that a fire was observed at the solvent storage area at the company's Ankleshwar (Gujarat) Plant in the early hours of 4 February 2018. The plant manufactures intermediates and Active Pharmaceutical Ingredients (APIs). The fire was put off by the site firefighting team with support from the DMPC fire tenders. There were no injuries during this incident and the situation is under control. There was no direct loss of production because of this incident. A detailed investigation is under progress, it added. The announcement was made after market hours yesterday, 5 February 2018.
Igarashi Motors India lost 3.8% after net profit declined 15.42% to Rs 15.36 crore on 18.01% fall in net sales to Rs 101.95 crore in Q3 December 2017 over Q3 December 2016. The company announced Q3 result after market hours yesterday, 5 February 2018.
On the macro front, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will meet today, 6 February and tomorrow, 7 February 2018 for the sixth bi-monthly monetary policy statement for 2017-18. The resolution of the MPC will be announced tomorrow, 7 February 2018. The central bank is likely to keep its policy rate on hold, but could toughen its warnings against inflation. The MPC is expected to tilt towards a hawkish tone from its neutral tone following higher fiscal targets, oil price increases and higher minimum support prices (MSP) for crops.
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