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Sensex drops below 32,000; Nifty below 10,000

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A sudden sell-off gripped bourses in morning trade led by slide in index heavyweights ITC, and Industries. At 10:21 IST, the barometer index, the S&P Sensex, was down 295.44 points or 0.92% at 31,978.23. The index was down 85.40 points or 0.85% at 9,972. The dropped below the psychological 32,000 level while the also declined below the psychological 10,000 level in morning trade.

Key benchmark indices were trading with modest gains in early trade led by gains turnaround Q1 results by steel giant Tata Steel and select auto stocks.

The S&P Mid-Cap index was off 1.32%. The S&P Small-Cap index was off 1.46%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,586 shares declined and 460 shares rose. A total of 63 shares were unchanged.

Overseas, Asian stocks took a breather as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth. China's export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from an 11.3% rise in June, official data showed on Tuesday. Imports rose 11%, the slowest growth since December and down from a 17.2% rise in the previous month. That left the country with a trade surplus of $46.74 billion for the month, the highest since January, above June's $42.77 billion.

US stocks closed higher yesterday, 7 August 2017 with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine with consumer staples and technology shares leading on the day. The Dow Jones Industrial Average rose 25.61 points, or 0.1%, to a new closing record of 22,118.42. The S&P 500 rose 4.08 points to 2,480.9, a rise of 0.2%. The Nasdaq Composite Index climbed 32.21 points, or 0.5%, to 6,383.77.

US Fed speaker St. Louis Fed President James Bullard said the level of short-term interest rates was fine, and that the current level of the policy rate is likely to remain appropriate over the near term.

Back home, realty stocks fell. DLF (down 1.59%), Indiabulls Real Estate (down 1.7%), Housing Development and Infrastructure (down 3.68%), D B Realty (down 2.69%), Unitech (down 5.31%), Sobha (down 1.74%), Godrej Properties (down 0.27%) and Oberoi Realty (down 1.45%) declined. Prestige Estates Projects (up 1.42%) rose.

Telecom stocks declined. Idea Cellular (down 0.86%), MTNL (down 0.51%), Tata Teleservices (Maharashtra) (down 2.25%) and Communications (down 2.52%) edged lower. Bharti Airtel (up 0.29%) rose.

Shares of Bharti Infratel lost 4.11% on reports Bharti Airtel sold its 3.7% stake in Bharti Infratel via multiple block deals in the stock exchanges in early trade today, 8 August 2017. On the BSE, 8.05 crore shares were traded in the counter so far, compared with average daily volumes of 1.35 lakh shares in the past one quarter. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

According to reports, about 6.75 crore shares of Bharti Infratel worth Rs 2550 crore changed hands in five block deals on the BSE and the NSE. Nettle Infrastructure Investments, a subsidiary of Bharti Airtel, sold Bharti Infratel shares in a price range of Rs 378-397.85 each, reports added. As on 30 June 2017, Bharti Airtel owned 50.33% stake, while Nettle Infrastructure Investments owned 11.32% stake in Bharti Infratel.

Polar Consulting & Services lost 4.26% after consolidated net profit fell 8.64% to Rs 30.21 crore on 2.39% decline in net sales to Rs 554.95 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 7 August 2017.

Polar Consulting & Services' revenue declined on the backdrop of currency appreciation. Profit declined due to lower operating profit and unfavorable currency movements. Profit was impacted due to proactive hiring and account level investments made for supporting future growth.

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

First Published: Tue, August 08 2017. 10:25 IST