Key benchmark indices tanked in early trade amid global sell-off of equities. At 9:18 IST, the barometer index, the S&P BSE Sensex was down 1,004.07 points or 2.89% at 33,753.09. The Nifty 50 index slumped 301.40 points or 2.83% at 10,365.15. 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 4.18%. The S&P BSE Small-Cap index fell 4.36%. 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 breadth, indicating the overall health of the market, was weak. On the BSE, 1,681 shares declined and 95 shares advanced. A total of 43 shares were unchanged.
Tata Motors tumbled 6.58% at Rs 370. 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 2.98% at Rs 3,525.60. The company is scheduled to announce Q3 December 2017 results today, 6 February 2018.
Oil India was down 0.13%. The company announced that its board will also consider a proposal of issuing bonus shares in the meeting scheduled on 9 February 2018 when the company is scheduled to announce Q3 December 2017 results. The announcement was made after market hours yesterday, 5 February 2018.
Lupin fell 2.64%. The company is scheduled to announce Q3 December 2017 results today, 6 February 2018.
Sun Pharmaceutical Industries (Sun Pharma) fell 2.05%. 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.
Bank of Baroda was down 3.56%. The bank announced reduction in its marginal cost of funds based lending rate (MCLR) in the range of 10 to 25 basis points across tenors with effect from 7 February 2018. The announcement was made 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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