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Market drops on weak global cues

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Key benchmark indices logged modest losses led by slide on selling pressure in index pivotals. The barometer index, the BSE Sensex, lost 249.90 points or 0.69% at 35,884.41, as per the provisional closing data. The index lost 80.20 points or 0.74% at 10,789.30, as per the provisional closing data. Global stocks dropped as resurgent trade worries worsened investor fears about global economic growth. Volatility rose in late trade after the (RBI) announced monetary policy.

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5%. Consequently, the reverse repo rate under the LAF remains at 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

The decision of the MPC is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 4 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 55.89 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 521.38 crore.

On the political front, state assembly elections will be closely watched. Polling in and Telangana will be held tomorrow, 7 December 2018. Assembly elections in and were held on 28 November 2018. The election to the 90-member Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.

Domestic stocks edged lower in early trade as key index pivotals dropped. Key benchmark indices traded with weakness in morning trade. Weakness persisted on the bourses in afternoon trade and mid-afternoon trade as caution prevailed ahead of the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. Market turned volatile in late trade as the indices cut losses soon after sliding to intraday low.

In broader market, the BSE Mid-Cap index fell 1.22%. The BSE Small-Cap index fell 1.21%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 806 shares rose and 1763 shares fell. A total of 149 shares were unchanged.

lost 3.7% after the company announced that Ratings has lowered the credit rating of the company and luxury car unit, (JLR), citing weaker profitability at JLR. S&P cut its rating on Tata Motors' issuer credit and senior unsecured notes to 'BB-' from 'BB'. The ratings remain on negative watch. The announcement was made after market hours yesterday, 4 December 2018.

Car India fell 2.14%. The company informed that over the past year, the cost of company's vehicles has been impacted adversely due to increase in commodity prices and foreign exchange rates, etc. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2019. This price increase shall vary for different models. Meanwhile, the company said that its total production fell 12.6% to 135,946 units in November 2018 over November 2017. The announcement was made during market hours today, 5 December 2018.

fell 1.69%. The company announced that its construction arm Construction has won orders worth Rs 2106 crore. The announcement was made during market hours today, 5 December 2018.

declined 1.71% . informed that the company participated in the 550 MW tender floated by Uttar Pradesh New and Agency (UPNEDA) for grid-connected Solar projects. In the Reverse Auction held on 3 December 2018, has participated for 85 MW Solar capacities and has won the entire capacity bid by it, at a levelised tariff of Rs 3.02/unit, applicable for 25 years. The 85 MW of solar projects shall be set up by NTPC and shall add to the installed capacity of NTPC. The announcement was made during market hours today, 5 December 2018.

fell 3.37%. The company announced today, 5 December 2018, the completion of Food and Drug Administration (US FDA) inspections carried out at its location. Lupin's location houses the company's cardiovascular "Pril" facilities, Cephalosporin facilities and These inspections were carried out between November 26 and December 4,2018.

The inspection at Unit-2, the Cardiovascular "Pri l" facilities closed with 4 observations. The inspection at Unit-I, the Cephalosporin facilities closed with 10 observations for the Cephalosporin API facilities and 8 observations for the The observations are largely procedural in nature with some gaps identified in the of the Cepha losporin API block and the company is confident of addressing them satisfactorily. As a company, has committed to an enhanced Quality Management System and Compliance Sustainability Plan. The site is already executing the plan, which also serves to address some of the concerns ra ised during this inspection. There are no new DMF and ANDA applications pending for review or approval from Lupin's Mandideep facilities.

Further, Lupin announced the launch of 4mg and 8mg, having received an approval from the Food and Drug Administration (USFDA) earlier. Lupin's 4mg and 8mg; is the generic equivalent of Allergan's Rapaflo. An alpha-1 adrenergic receptor antagonist, it is indicated for the of benign prostatic hyperplasia (BPH). Rapaflo had annual sales of $198.5 million in the US (IQVIA MAT September 2018). The announcement was made after market hours yesterday, 4 December 2018.

Overseas, European stocks were lower as resurgent trade worries worsened investor fears about global economic growth. Investors are likely to closely monitor any further political developments as lawmakers continue to debate Westminster's Brexit plan. suffered a series of embarrassing defeats in Parliament on Tuesday.

Asian stocks dropped in the wake of the biggest slide in stocks on Wall Street. Activity in China's service sector expanded at a faster pace in November, a private gauge showed Wednesday. The Caixin services purchasing managers' index rose to 53.8 in November from a 13-month low of 50.8 in October, and research firm Markit said.

Doubts surrounding the US and China's ability to achieve a concrete deal to avoid new, or expanded, bilateral tariffs are rising, as investors focused on the lack of specific concessions made by at last weekend's meeting in Argentina, where and Chinese met.

US financial markets will remain closed Wednesday for a of mourning to honor former US stocks finished sharply lower Tuesday, logging their worst day in nearly a month, as skepticism mounted over the significance of an agreement reached by the US and to postpone new tariffs.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 15:43 IST