Key benchmark indices logged sharp losses led by slide in index heavyweights ITC, ICICI Bank and Hindustan Unilever. The barometer index, the S&P BSE Sensex, was down 332.55 points or 0.86% at 38,312.52, as per the provisional closing data. The Nifty 50 index was down 110.40 points or 0.95% at 11,570.10, as per the provisional closing data. Negative global cues weighed on the domestic bourses.
Trading for the week began on a positive note as the key benchmark indices edged higher in early trade boosted by good first-quarter GDP data. Indices extended gains and hit fresh intraday high in morning trade. Stocks trimmed gains in mid-morning trade after data showed that manufacturing PMI has slowed in August. Key benchmark indices hovered with modest gains in early afternoon trade. Indices gave away almost all gains in afternoon trade. Stocks nudged lower in in mid-afternoon trade. A sell-off gripped bourses in late trade.
The S&P BSE Mid-Cap index fell 0.45%. The S&P BSE Small-Cap index fell 0.17%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On the BSE, 1363 shares rose and 1399 shares fell. A total of 207 shares were unchanged.
Index heavyweights ITC (down 2.44%), ICICI Bank (down 2.35%) and Hindustan Unilever (down 4.53%) declined.
Bajaj Auto rose 0.5% after the company reported a 30% growth in its total vehicles sales at 4.37 lakh units in August 2018 over August 2017. Bajaj Auto's total domestic sales rose 27% to 2.55 lakh units, while total exports rose 35% to 1.81 lakh units in August 2018 over August 2017. The announcement was made during market hours today, 3 September 2018.
Hero MotoCorp fell 0.49%. The company said that its total sales rose 0.92% to 6.85 lakh units in August 2018 over August 2017. The announcement was made on Saturday, 1 September 2018.
Mahindra & Mahindra (M&M) lost 1.94%. M&M during market hours today, 3 September 2018 announced the launch of Marazzo. The Marazzo comes with a smooth ride, agile handling, quiet cabin, fastest cooling and luxurious interior space. The Marazzo will be available at Mahindra dealerships pan India starting today, at launch price of Rs 9.99 lakh (ex-showroom) for the M2 variant.
In a separate announcement made during market hours today, 3 September 2018, M&M's Farm Equipment Sector (FES) announced that domestic sales were at 16,375 units in August 2018, as against 15,356 units in August 2017. Total tractor sales (domestic + exports) were at 17,785 units during August 2018, as against 16,641 units in same period last year. Exports for the month stood at 1,410 units.
M&M on Saturday, 1 September 2018 announced that its auto sales for August 2018 stood at 48,324 vehicles, compared to 42,207 vehicles during August 2017, a growth of 14%.
Maruti Suzuki India declined 2.12%. The company said that its total sales declined 3.4% to 158,189 lakh units in August 2018 over August 2017. The announcement was made on Saturday, 1 September 2018.
Tata Motors shed 0.22%. The company said total sales in the domestic market in August 2018 grew by 27% at 58,262 units compared to 45,906 units over previous year. Commercial Vehicles (CV) domestic sales in August 2018 were 39,859 units as against 31,566 units in Aug 2017, a growth of 26% led by the continued acceptance of the superior performance of our BS4 products. The announcement was made on Saturday, 1 September 2018.
Wipro gained 2.6% after the company announced that it has won a 10-year engagement to provide a comprehensive suite of solutions and services to Lincolnshire, Illinois-based Alight Solutions LLC, a leader in technology-enabled health, wealth, HR and finance solutions. This deal will result in revenues of $1.5 to $1.6 billion for Wipro over the tenure. This is Wipro's largest win to date. The announcement was made on Sunday, 2 September 2018.
This engagement will enable the digital transformation of Alight's offerings across health, wealth, HR and finance solutions, and enhance the employee experience of Alight's clients by leveraging Wipro's industry-leading strengths in digital technologies, cognitive automation and data analytics.
On the macro front, August survey data released during market hours today, 3 September 2018 indicated that operating conditions improved at the slowest pace since May, mainly reflecting slower gains in output and new orders. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 51.7 in August from 52.3 in July.
India's Gross Domestic Product (GDP) growth accelerated sharply to nine-quarters high level of 8.2% in the quarter ended June 2018, while showing consistent improvement from a low of 5.6% in the quarter ended June 2017. The data was released by the government after market hours on Friday, 31 August 2018.
The production of eight core infrastructure industries comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP) increased 6.6% in July 2017 over July 2017. The cumulative output improved 5.8% in April-July 2018-19. The data was released by the government after market hours on Friday, 31 August 2018.
Overseas, most European stocks declined amid heightened concerns of an escalating trade war between the world's two largest economies. Asian stocks were trading lower as trade-war fears increased after the US and Canada missed a deal deadline set for Friday and uncertainty rose about escalating tariffs between the US and China. Activity in China's factories expanded at a slower rate in August. The Caixin China manufacturing purchasing managers' index declined to 50.6 in August from 50.8 in July, Caixin Media Co. and research firm Markit said Monday.
US markets will be closed today, 3 September 2018 for the Labor Day holiday. US stocks closed mixed on Friday, 31 August 2018 as the Trump administration and Canada were said to plan on resuming trade talks next week after discussions Friday ended with no deal.
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