Key equity indices were trading in a narrow range near day's low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 272.61 points or 0.76% at 35,737.23. The Nifty 50 index was down 90.45 points or 0.84% at 10,704.50. Sentiment was impacted by weak IIP data and negative Asian stocks.
The Sensex was trading below the psychological 36,000 level after sliding below that level in early trade. Domestic stocks drifted lower in early trade on negative Asian stocks. Data showing a sharp drop in IIP in November 2018 also dented early sentiment. Stocks extended initial fall in morning trade. Weakness persisted on the bourses in mid-morning trade on selling pressure in index pivotals.
The market sentiment was impacted by data showing that foreign funds were net sellers of Indian stocks on Friday, 11 January 2019. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 687.20 crore on Friday, 11 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.17 crore on Friday, 11 January 2019, as per provisional data.
The S&P BSE Mid-Cap index was down 0.75%. The S&P BSE Small-Cap index was down 0.49%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 871 shares rose and 1452 shares fell. A total of 165 shares were unchanged.
IndusInd Bank (down 2.45%), Larsen & Toubro (down 2.42%), Vedanta (down 1.73%), Axis Bank (down 1.72%), HDFC (down 1.64%), TCS (down 1.48%) and Bharti Airtel (down 1.38%), were the major Sensex losers.
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Infosys gained 2.53%. On a consolidated basis, Infosys' net profit fell 12.17% to Rs 3610 crore on 3.84% increase in revenues to Rs 21400 crore in Q3 December 2018 over Q2 September 2018. Operating profit was reported at Rs 4830 crore, a growth of 11.8% year-on-year and a decline of 1.3% quarter-on-quarter.
The company revised its FY2019 revenue guidance in constant currency upward to 8.5%-9.0%. It retained operating margin guidance at 22%-24%. The result was announced after market hours on Friday, 11 January 2019.
The company's board approved buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 8260 crore (maximum buyback size) at a price not exceeding Rs 800 per share (maximum buyback price), subject to shareholders' approval by way of postal ballot. Further, the board also approved a special dividend of Rs 4 per share.
NTPC fell 1.46%. NTPC said it has decided to raise Rs 4,000 crore through private placement of secured non-convertible bonds in the nature of debentures at a coupon of 8.30% per annum with a door to door maturity of 10 years, on 15 January 2019. The proceeds will be utilized to finance capital expenditure/refinancing the debt requirement in on-going projects and other general corporate requirements. The bonds are proposed to be listed on both NSE & BSE. Security for these bonds will be duly created as per the requirements of and within the period of time prescribed under, the Companies Act and rules specified therein. The announcement was made after market hours on Friday, 11 January 2019.
Yes Bank rose 5.57%. Yes Bank announced the appointment of Mr. Brahm Dutt as non-executive part-time chairman of the board. The Reserve Bank of India, pursuant to the provisions of the Banking Regulation Act, 1949, and basis Mr. Brahm Dutt's outstanding credentials and experience, has approved his appointment as part-time chairman of Yes Bank's board up till 4 July 2020 vide its letter dated 11 January 2019.
Brahm Dutt has been on the board of Yes Bank since July 2013 as an independent director, and has contributed to almost all the sub-committees of the board over the past 5.5 years and is currently also the chair of the nomination & remuneration committee. The announcement was made on Saturday, 12 January 2019.
On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 3.80% (provisional) for the month of December 2018 (over December, 2017) as compared to 4.64% (provisional) for the previous month and 3.58% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.27% compared to a build up rate of 2.21% in the corresponding period of the previous year.
India's index of industrial production (IIP) (base year 2011-12=100) moderated sharply to mere 0.5% in November 2018, compared with 8.4% growth recorded in October 2018. The industrial production growth for October 2018 has been revised upwards from 8.1% increase reported provisionally. The data released after market hours on Friday, 11 January 2019.
The output of manufacturing sector declined 0.4%, while the electricity generation growth moderated to 5.1%% in November 2018. Further, the mining output growth also eased to 2.7% in November 2018.
Overseas, Asian shares were trading lower as China reported a slowdown in exports. Markets in Japan are closed for a holiday. China said Monday that its exports to the U.S. contracted in December although its overall trade surplus with the U.S. hit a record $323 billion in 2018. Exports to the U.S. rose 11.3% to $478.4 billion for the year despite punitive tariffs imposed by President Donald Trump in a fight over Chinese technology ambitions. The customs data showed imports of American goods rose just 0.7% over 2017, reflecting the impact of Beijing's retaliatory tariffs and encouragement to importers to buy more from non-U.S. suppliers.
In US, the Wall Street dipped slightly on Friday, breaking a five-session rally, as energy shares declined and investors looked ahead to earnings season. The Dow Jones Industrial Average ended down 0.02% at 23,995.95 points, while the Nasdaq Composite dropped 0.21% to 6,971.48. The S&P 500 ended down 0.01% at 2,596.26.
Meanwhile, the partial US government shutdown entered its 21st day, tying the record for the longest in history. Economists reportedly warn that the economic effects of the shutdown could grow significant as the standoff drags on.
In Europe, British Prime Minister Theresa May reportedly warned Sunday that lawmakers risk undermining the public's faith in democracy if they reject her divorce deal with the European Union in a vote set for Tuesday. May said some members of Parliament were playing political games with the Brexit debate. Lawmakers, she said, should respect the results of the 2016 referendum in which 52% of voters backed leaving the EU.
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