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Indices slide on weak global stocks

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Capital Market
Last Updated : Jan 03 2019 | 4:04 PM IST

Domestic stocks closed in the red for second day in a row as the key benchmark indices ended with strong losses led by slide in index pivotals HDFC, Reliance Industries and L&T. The barometer index, the S&P BSE Sensex, lost 377.81 points or 1.05% at 35,513.71, as per the provisional closing data. The Nifty 50 index lost 120.25 points or 1.11% at 10,672.25, as per the provisional closing data. Global stocks dropped after a revenue guidance cut from Apple added to fears of a slowdown in global economic growth.

Sentiment was also impacted after provisional data showed that domestic and foreign funds, both, were net sellers of Indian equities yesterday, 2 January 2019. The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 621.06 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 226.18 crore.

Intraday volatility was high. Key benchmark indices edged lower in early trade. Indices reversed losses to regain positive zone in morning trade. Fresh selling in index pivotals derailed a brief intraday pullback in mid-morning trade. Indices extended losses thereon to hit hit fresh intraday low in late trade.

The S&P BSE Mid-Cap index fell 1.03%. The S&P BSE Small-Cap index declined 0.58%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 959 shares rose and 1618 shares fell. A total of 149 shares were unchanged.

Mahindra & Mahindra (down 3.04%), ONGC (down 2.98%), Vedanta (down 2.64%), Tata Steel (down 2.59%) and HDFC (down 2.18%) were the major Sensex losers.

Index heavyweight and engineering & construction major Larsen & Toubro (L&T) fell 2.27% to Rs 1,393.95. The construction arm of L&T Construction has won orders worth Rs 1060 crore. The announcement was made during market hours today, 3 January 2019.

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Tata Consultancy Services (TCS) lost 1.36%. TCS announced that Emirates NBD, the Middle East's leading financial services group, has chosen TCS BaNCS for Payments as its core processing platform to standardize and streamline payments operations across multiple geographies, including India, Egypt, Saudi Arabia, Singapore, UK and their home market, the United Arab Emirates. The announcement was made during market hours today, 3 January 2019.

Overseas, European and Asian stocks fell while Dow futures dropped after a revenue guidance cut from Apple added to fears of a slowdown in global economic growth. Apple lowered its first-quarter revenue guidance to $84 billion, down from the $89 billion to $93 billion that had previously been forecast. Apple blamed a number of factors for the climbdown in guidance, including weakness in China's economy and disappointing iPhone revenue.

Trading in US index futures indicated that the Dow Jones Industrial Average could slide 331 points at the opening bell today, 3 January 2019. US stocks closed the first session of the year on a positive note after volatile trading Wednesday, as crude oil prices rebounded.

Market participants are watching a partial US government shutdown that is nearing its second week as President Donald Trump mets with top lawmakers to discuss reopening the government by resolving a dispute over funding for the expansion of the US-Mexico border wall.

On the data front, a survey of American manufacturers showed the slowest growth in December in 15 months. IHS Markit said its manufacturing PMI slipped to 53.8 in December from an initial reading of 53.9, and it was down from 55.3 in the prior month.

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First Published: Jan 03 2019 | 3:44 PM IST

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