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Stocks extend intraday losses

Key benchmarks extended losses and hit fresh intraday low in afternoon trade. At 13:24 IST, the barometer index, the S&P BSE Sensex, was down 281.04 points or 0.74% at 37,508.09. The Nifty 50 index was down 76.70 points or 0.68% at 11,282.75.

Negative global stocks weighed on the sentiment on concerns that the US and China would struggle to reach an agreement. US Dow futures was down 230 points on Thursday, after US President Donald Trump threatened tariff retaliation on China, which he claims "broke the deal".

Key indices edged lower in early trade on negative Asian stocks. Stocks cut losses in morning trade after an initial slide. The market hovered in negative zone in mid-morning trade. Shares extended losses in afternoon trade.

The S&P BSE Mid-Cap index was down 0.44%. The S&P BSE Small-Cap index was down 0.50%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 912 shares rose and 1329 shares fell. A total of 147 shares were unchanged.

Index heavyweight Reliance Industries (RIL) fell 3.12% to Rs 1,258.95 after a foreign brokerage firm reportedly downgraded the company to equal-weight, with a price target at Rs 1,349 per share. Earnings upswing of the last two fiscal is likely to reverse and the upside appears limited, as the core business of the company drags, the brokerage reportedly said.

NTPC (down 2.52%), Coal India (down 2.31%), Sun Pharmaceutical Industries (down 1.45%), HCL Technologies (down 1.41%), ITC (down 1.3%), Asian Paints (down 1.05%), HDFC (down 0.99%) and HDFC Bank (down 0.94%), were the major Sensex losers.

Yes Bank (up 3.98%), Hero MotoCorp (up 1.09%), Bajaj Finance (up 0.79%), Infosys (up 0.65%), Tata Motors (up 0.43%) and TCS (up 0.40%), were the major Sensex gainers.

Hindalco Industries fell 1.30% to Rs 198 after wholly-owned subsidiary, Novelis, reported a 5.5% decline in net income to $103 million in Q4 March 2019 over Q4 March 2018. Hindalco Industries made the announcement after market hours yesterday, 8 May 2019.

Novelis, the wholly-owned subsidiary of Hindalco Industries, posted a 5.5% decline in net income at $103 million in the quarter ended on 31 March 2019. It posted a net income of $109 million in the year-ago period, Hindalco said in a filing to BSE. Net sales increased 1% over the prior year to $3.1 billion in the fourth quarter of fiscal 2019, driven by higher total shipments, partially offset by lower average aluminum prices.

Shipments of flat rolled products increased 8% to 870 kilotonnes. Adjusted EBITDA for the fourth quarter of fiscal 2019 increased 12% to $357 million as compared to $319 million in the prior year. This increase reflects the favorable impacts from higher shipments, improved product mix, and favorable metal costs.

Titan Company rose 0.33% after consolidated net profit rose 14.42% to Rs 348.30 crore on 18.82% increase in net sales to Rs 4,823.49 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 8 May 2019.

On a standalone basis, Titan Company's net profit rose 4.4% to Rs 294.58 crore on 19.7% increase in net sales to Rs 4,630.93 crore in Q4 March 2019 over Q4 March 2018.

Bhaskar Bhat, managing director of the company stated that "The growth momentum of the past few years continued in 2018-19 backed by the strong revenue as well as profit growth across all key divisions. The jewellery business grew through successful launch of design differentiated collections as well as tailwinds provided through regulatory developments over the last couple of years like GST. The Watches business had a great year too with the recrafting strategy resulting in the highest topline growth in recent years, a jump in margins and the highest ever profit. The Eyewear business recorded a strong growth of 23% with the new pricing strategy showing results. Skinn, our perfume brand as well as Taneira, Indian dress wear brand are scaling up in the coming year. Many steps are being taken to prepare the company for the future and set a foundation for healthy growth in the years to come."

Overseas, shares in Europe and Asia tumbled on Thursday as increased tensions ahead of key Sino-US trade negotiations raised fresh concerns about the outlook for the global economy.

The US stock market switched direction toward the closing bell to finish mostly lower Wednesday as worries over US-China trade talks lingered.

US President Trump, in a pair of tweets on Wednesday morning, said he would be happy to keep tariffs on Chinese exports rather than make a bad deal, setting the stage for a contentious round of talks between the United States and China that is set to begin on Thursday. Mr. Trump's comments provoked a swift response from the Chinese Commerce Ministry, which suggested that it was once again ready to retaliate against American companies and their products with its own countermeasures.

The United States will raise tariffs from 10% to 25% on $200 billion worth of Chinese imports effective May 10, as per reports. The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs.

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