The market traded with deep losses in morning trade, following a meltdown in global equities. US stocks crashed overnight as cautious commentary from the Federal Reserve and rising coronavirus infection rates prompted investor concern.
Fed Chair Jerome Powell on Wednesday said the pandemic could result in permanent economic damage and an extended period of high unemployment. Fed officials estimate that the US economy will shrink 6.5% this year, before expanding 5% in 2021.
At 10:23 IST, the barometer index, the S&P BSE Sensex, was down 771.37 points or 2.30% at 32,767.00. The Nifty 50 index lost 225.20 points or 2.27% at 9,676.80.
In the broader market, the S&P BSE Mid-Cap index fell 1.80% while the S&P BSE Small-Cap index declined 2.26%.
The market breadth is weak. On the BSE, 385 shares rose and 1615 shares fell. A total of 83 shares were unchanged.
Adani Enterprises (down 3.26%), Escorts (up 0.07%), BHEL (down 3%), Jindal Steel (down 3.80%), Just Dial (down 2.57%), and PVR (down 3.7%) are under the F&O ban for June 12. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
Buzzing Index:
The Nifty Auto index fell 2.45% to 6,217.60. The index is down 6.2% in five sessions while the benchmark Nifty 50 index has fallen 4.6% during the same period.
Tata Motors (down 5.66%), Ashok Leyland (down 3.62%), Mahindra & Mahindra (down 2.78%), Eicher Motors (down 2.71%), Hero MotoCorp (down 1.88%), Bajaj Auto (down 1.78%), TVS Motor Company (down 1.71%) and Maruti Suzuki India (down 1.33%) declined.
Q4 Results Today:
Eicher Motors, Hindalco Industries, Mahindra & Mahindra, Gujarat Industries Power, Castrol India, Alkali Metals, Indo Count Industries, IOL Chemicals, Mangalore Chemicals & Fertilisers and Suprajit Engineering are some of the companies that will announce their quarterly earnings today.
Earnings impact:
KNR Constructions declined 2.88% to Rs 195.90 after consolidated net profit declined 27.8% to Rs 74.66 crore on 4.6% decline in net sales to Rs 730.14 crore in Q4 March 2020 over Q4 March 2019.
Consolidated EBITDA rose 4% to Rs 187.43 crore in Q4 March 2020 from Rs 180.57 crore in the corresponding period last year. EBITDA margin improved to 25.7% in Q4 March 2020 from 23.6% in Q4 March 2019.
As of 31 March 2020, KNR Construction recorded an order book of Rs 5229.70 crore out of which Rs 3656.10 crore is from road sector and Rs 1573.60 crore is from irrigation sector.
Westlife Development declined 1.74% to Rs 293.05 after the company reported a consolidated net loss of Rs 25.27 crore in Q4 March 2020 as against a net profit of Rs 1.28 crore reported in Q4 March 2019.
Consolidated net sales remained flat at Rs 332.88 crore in the quarter ending March 2020 compared to Rs 333.75 crore posted in the same period last year.
Westlife said that QSR business and inventory includes food items which are perishable in nature with a short shelf life. Based on the current situation of COVID-19 and continuous lock down, the company expected reduced demand and footfalls. Accordingly, the company has made provision for write off food inventory of Rs 16.63 crore in the quarter ended on 31 March 2020.
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