Key benchmark indices continued to languish in red in the mid-morning trade on weak global cues. At 11:15 IST, the barometer index, the S&P BSE Sensex, was down 342.61 points or 0.98% at 34,724.14. The Nifty 50 index declined 106.85 points or 0.99% at 10,653.75. The Sensex was trading below the 35,000 level after slipping below that level in intraday trade.
Key indices opened on a weaker note tracking slide in Asian markets and sharp decline in US stocks. Later, indices languished in negative terrain so far. Global stocks declined after a stronger-than-expected US jobs report sent bond yields surging. Also, the trading of US index futures showed a weak opening of US stocks today, 5 February 2018.
Investor sentiment remained negative after Finance Minister Arun Jaitley announced long term capital gains (LTCG) tax in Union Budget 2018. The Budget proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10%.
Among the secondary indices, the S&P BSE Mid-Cap index declined 1.12%. The S&P BSE Small-Cap index lost 1.49%. Both these indices underperformed the Sensex.
The broad market depicted weakness. There were more than 3 losers against every gainer on the BSE. 1,965 shares fell and 543 shares rose. A total of 125 shares were unchanged.
Realty stocks declined. Oberoi Realty (down 4.73%), Godrej Properties (down 3.64%), Prestige Estates Projects (down 3.46%), Sobha (down 2.09%) and Unitech (down 0.67%) edged lower. Indiabulls Real Estate (up 2.89%), HDIL (up 1.95%) and DLF (up 1.66%) gained.
Cement stocks fell. ACC (down 3.36%), Ambuja Cements (down 1.87%), UltraTech Cement (down 1.02%) and Grasim Industries (down 2.89%) declined.
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3M India rose 3.09% after net profit jumped 116.12% to Rs 91.70 crore on 14% increase in total income to Rs 670.43 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 2 February 2018.
On the macro front, Markit Economics data of a monthly survey on the performance of India's services sector in January 2018 showed that the Nikkei India Services PMI increased to 51.7 in January from 50.9 in December 2017.
Meanwhile, minister of railways and coal Piyush Goyal in a written reply to a question in Rajya Sabha on Friday, 2 February 2018 stated that the supply of coal to the power sector has risen to 210.3 million tonnes (MT) in the first six months of this fiscal against 195.2 MT during the corresponding period of 2016-17 thus recording growth of 7.74% (provisional).
Overseas, Asian stocks edged lower following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services purchasing managers' index (PMI) increased to 51.9 in January from 51.2 in December 2017.
China's Caixin services PMI rose to 54.7 in January from December's 53.9, expanding at its fastest pace in almost six years, data released today, 5 February 2018 showed. The 50-mark separates growth from contraction on a monthly basis.
Trading of US index futures showed that Dow could slip 132 points at the opening bell today, 5 February 2018. US stocks fell sharply on Friday, 2 February 2018 on surging bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.
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