Key benchmark indices hit fresh intraday low in negative zone in afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 26.87 points or 0.08% at 35,292.48. The Nifty 50 index was down 17.55 points or 0.16% at 10,724.15. Realty stocks fell. Capital goods stocks edged lower. Investors turned cautious ahead of the Karnataka assembly elections on 12 May 2018.
Among secondary barometers, the BSE Mid-Cap index was down 1.27%. The BSE Small-Cap index was down 1.14%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 762 shares rose and 1,734 shares fell. A total of 117 shares were unchanged.
Eicher Motors rose 0.61% after consolidated net profit rose 0.45% to Rs 461.53 crore on 35.05% rise in total income to Rs 2709.21 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 9 May 2018.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose 36.3% to Rs 797 crore in Q4 March 2018 over Q4 March 2017. Profit after tax from continuing operations (PAT) rose 38.1% to Rs 649 crore in Q4 March 2018 over Q4 March 2017.
Eicher Motors said that on 9 March 2018, the board of directors of Eicher Polaris (EPPL), Eicher Motors' 50:50 joint venture with Polaris Inc., US, decided to wind down the operations of the EPPL. Consequently, the consolidated financial results include an amount of Rs 187.03 crore of exceptional nature representing the company's share of loss for Q4 March 2018. This is over and above the share of loss of Rs 124.95 crore recognised from the commencement of operation of the company in June 2015 31 till December 2017
Realty stocks fell. DLF (down 3.62%), Indiabulls Real Estate (down 2.61%), Housing Development and Infrastructure (down 3.39%), D B Realty (down 0.57%), Unitech (down 2.67%), Sobha (down 0.56%), Godrej Properties (down 1.53%) and Oberoi Realty (down 1.55%) declined. Prestige Estates Projects (up 0.32%) rose.
Capital goods stocks edged lower. Bharat Heavy Electricals (Bhel) (down 2.57%), BEML (down 3.25%), Bharat Electronics (down 1.25%), ABB India (down 0.1%), Punj Lloyd (down 2.45%), Siemens (down 0.36%) and Thermax (down 0.37%) declined. L&T (up 0.34%) rose.
On the political front, election will be held on 12 May 2018 in 223 constituencies out of 224 of the Karnataka Legislative Assembly, 1 constituency has been postponed following the death of B.N. Vijay Kumar, Jayanagar BJP candidate. The counting of votes and announcement of result will take place on 15 May 2018. The tenure of Karnataka assembly ends on 28 May 2018.
Overseas, European shares rose in early trade. Asian shares were trading higher, tracking Wall Street's advance as oil prices traded higher after touching multi-year highs overnight.
In US, the broader stock market rallied as sharp gains in energy, financials and technology stocks propelled the main benchmarks firmly higher.
On the data front, US wholesale prices rose a scant 0.1% in April to mark the smallest gain since the end of 2017, perhaps a sign inflationary pressures are leveling off after a prolonged upsurge. The 12-month rate of wholesale inflation slipped to 2.6% from 3%. The so-called core rate of wholesale inflation also increased 0.1%. The core rate is a closely watched category that excludes food, energy and retail-trade margins. The yearly rate of core inflation slipped to 2.5% from 2.9%.
Meanwhile, the US Energy Information Administration reported Wednesday that crude supplies fell by 2.2 million barrels for the week ended 4 May 2018. The decline followed back-to-back weekly increases.
Oil prices continued their move higher after touching multiyear highs overnight as investors digested the impact renewed US sanctions on Iran would have on oil supplies.
In the global commodities markets, Brent for July 2018 settlement was hovering above $77 a barrel mark. The contract jumped $2.36 a barrel or 3.15% to settle at $77.21 a barrel during the previous trading session.
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