Key benchmark indices logged modest losses on last trading day of the week led by index pivotals State Bank of India (SBI), Reliance Industries (RIL) and ICICI Bank. The barometer index, the S&P BSE Sensex, fell 155.14 points or 0.41% at 37,869.23, as per the provisional closing data. The Nifty 50 index fell 41.20 points or 0.36% at 11,429.50, as per the provisional closing data. The Sensex settled below the psychological 38,000 level after falling below that level in early trade.
Intraday volatility was high. Stocks edged lower in early trade, with the Sensex falling below the psychological 38,000 level tracking mostly negative Asian stocks. Key benchmark indices continued to trade lower in morning trade. Stocks staged a mild recovery in early afternoon trade after hitting intraday low in mid-morning trade. Indices turned range bound in afternoon trade. Volatility ruled the roost in mid-afternoon trade as stocks extended losses soon after staging an intraday recovery.
The S&P BSE Mid-Cap index was off 0.93%. The S&P BSE Small-Cap index was off 0.87%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1101 shares rose and 1526 shares fell. A total of 147 shares were unchanged.
Tata Motors lost 2.83%. Jaguar Land Rover during market hours today reported total retail sales of 36,144 vehicles in July 2018, down 21.6% year on year, primarily reflecting transitional issues in certain markets. For July Jaguar retail sales were 10,992 and Land Rover retail sales were 25,152 vehicles, down 15.2% and 24% respectively on the same month last year.
Retails for July were down in China (46.9%), reflecting continued market volatility in the first month of the duty change as well as trade tensions. Sales were also down in Europe (26.5%) and the UK (18.3%), impacted by the industry-wide issue of delays in WLTP certification of 2019 model year vehicles.
Retail sales were also down in North America (9.5%), resulting from softer industry volumes (down more than 3%) combined with foregoing some higher discounted business and later timing for new model year launches this year compared to a year ago.
State Bank of India (SBI) lost 4.33% after the bank reported net loss of Rs 4875.85 crore in Q1 June 2018 as compared with net profit of Rs 2005.53 crore in Q1 June 2017. Total income rose 4.1% to Rs 65492.67 crore in Q1 June 2018 over Q1 June 2017. The result was announced during market hours today, 10 August 2018.
The bank's gross non-performing assets (NPAs) stood at Rs 212839.92 crore as on 30 June 2018 as against Rs 223427.46 crore as on 31 March 2018 and Rs 188068.49 crore as on 30 June 2017.
The ratio of gross NPAs to gross advances stood at 10.69% as on 30 June 2018 as against 10.91% as on 31 March 2018 and 9.97% as on 30 June 2017. The ratio of net NPAs to net advances stood at 5.29% as on 30 June 2018 as against 5.73% as on 31 March 2018 and 5.97% as on 30 June 2017.
State Bank of India (SBI) said that executive committee of central board (ECCB) accorded approval to explore and initiate the process of divestment upto 4% of stake of SBI in SBI General lnsurance Company to a non-promoter entity through small parcel share sale (SPSS). The announcement was made after market hours yesterday, 9 August 2018.
Eicher Motors advanced 4.97%. On a consolidated basis, net profit of Eicher Motors rose 25.36% to Rs 576.18 crore on 27.24% rise in net sales to Rs 2534.29 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 9 August 2018.
In the quarter ended June 2018, Royal Enfield posted its best ever performance. Royal Enfield sold 225,286 motorcycles in Q1 June 2018, registering a growth of 23% over 183,731 motorcycles sold in the same period last year.
Tata Consultancy Services (TCS) rose 1.09%. TCS during market hours today announced that Bahrain-based SNIC Insurance (formerly known as Saudi National Insurance Company) has selected TCS BaNCS for Insurance to support its ambitious digital transformation strategy in order to establish a unique leadership position in the market.
TCS BaNCS will power SNIC's strategy and enable competitive advantage by supporting General and Medical Insurance, Financials and Business Intelligence. By leveraging this core platform, the company will be able to harmonize several existing product lines as well as roll out new products faster.
On the macro front, the government will declare industrial production (IIP) data for June at 17:30 IST today, 10 August 2018.
Overseas, European shares were trading lower as investors reacted to corporate earnings, fresh turmoil for Turkey and continued fears of a trade war between the US and China. Most Asian stock markets dropped as trade and broader geopolitical concerns continue to weigh on over investor sentiment.
Japan's economy expanded in the April-June period after a mild contraction in the previous three months. The world's third-largest economy expanded at an annualized pace of 1.9% in the second quarter of 2018 after a revised 0.9% contraction in the first quarter.
The US stock market ended mostly lower on Thursday, as investors weighed the continuing trade dispute between the US and China against the backdrop of strong corporate earnings and a healthy economic performance.
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