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Key benchmarks trim intraday losses

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Last Updated : Aug 18 2017 | 2:47 PM IST

Key benchmark indices trimmed losses in mid-afternoon trade after hitting fresh intraday low in afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was down 310.52 points or 0.98% at 31,484.94. The Nifty 50 index was down 87.15 points or 0.88% at 9,817. Bulk of today's steep market slide was triggered by a sharp slump in index heavyweight and IT major Infosys. Sentiment was also hit as global stocks markets declined on rising doubts about US President Donald Trump's ability to deliver his economic agenda.

The Sensex fell 446.33 points, or 1.40% at the day's low of 31,349.13 in afternoon trade, its lowest level since 14 August 2017. The index fell 65.58 points, or 0.21% at the day's high of 31,729.88 in early trade. The Nifty fell 120.50 points, or 1.22% at the day's low of 9,783.65 in afternoon trade, its lowest level since 16 August 2017. The index fell 38.20 points, or 0.39% at the day's high of 9,865.95 in early trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.34%. The BSE Small-Cap index was down 0.80%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,724 shares fell and 680 shares rose. A total of 113 shares were unchanged.

Most auto stocks declined. Ashok Leyland (down 2.04%), Tata Motors (down 1.74%), Escorts (down 1.23%), Maruti Suzuki India (down 0.51%), Hero MotoCorp (down 0.47%) and Bajaj Auto (down 0.37%), edged lower. TVS Motor Company (up 0.03%), Mahindra & Mahindra (up 0.39%) and Eicher Motors (up 0.41%), edged higher.

Most capital goods shares declined. Punj Lloyd (down 3.25%), GE Power India (down 3.16%), Praj Industries (down 2.49%), Suzlon Energy (down 2.33%), SKF India (down 2.15%), GE T&D India (down 1.91%), ABB India (down 1.87%), Crompton Greaves (down 1.49%), Siemens (down 0.95%), Reliance Defence and Engineering (down 0.84%), Bharat Electronics (down 0.6%), Havells India (down 0.49%), Bharat Heavy Electricals (down 0.39%) and Lakshmi Machine Works (down 0.09%), edged lower. Jindal Saw (up 0.60%), Thermax (up 0.74%) and BEML (up 1.91%), edged higher.

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Engineering and constructon major Larsen & Toubro (L&T) was down 0.22% to Rs 1,130.55. The stock hit a high of Rs 1,137.50 and a low of Rs 1,124.15 so far during the day.

IT major Infosys tumbled 9.78% to Rs 921.25. Vishal Sikka has resigned as managing director and chief executive officer of Infosys. The board has accepted his resignation with immediate effect, the IT major said in a statement issued during trading hours today, 18 August 2017. Infosys said U.B. Pravin Rao, its chief operating officer, has been named as interim managing director and chief executive.

Dr Sikka cited personal attacks as one of the reasons for his surprise resignation in a letter to Infosys board members. In his notice of resignation to the board, Dr Sikka reiterated his belief in the great potential of Infosys, but cited among his reasons for leaving a continuous stream of distractions and disruptions over the recent months and quarters, increasingly personal and negative as of late, as preventing management's ability to accelerate the company's transformation, Infosys said in a statement.

The board understands and acknowledges Dr Sikka's reasons for resignation, and regrets his decision. In particular, the board is profoundly distressed by the unfounded personal attacks on the members of our management team that were made in the anonymous letters and have surfaced in recent months, Infosys added.

Overseas, European stocks edged lower as a terror attack in Barcelona weighed on investor sentiment. Asian stocks edged lower on growing doubts about US President Donald Trump's ability to fulfil his economic agenda.

Confidence was shaken further after a van mowed through crowds of tourists in Barcelona on Thursday, 17 August 2017, killing at least 13 people and injuring more than 100 in an attack authorities were treating as terrorism. More were hurt in a second incident in the resort town of Cambrils, which the government said was connected to the Barcelona attack. Spanish police said they had killed four attackers in a shootout south of the city overnight.

US stocks tumbled overnight as the broader market appeared to be fretting about a number of bearish factors, including a record-setting market that has been viewed as too rich and due for a pullback, concerns about the health of the economy and the Federal Reserve's comfort in normalizing interest rates amid levels of inflation that have run below their 2% target, considered indicative of a normally functioning economy.

The Dow Jones Industrial Average fell 274 points, or 1.2%, lower at 21,750, as the broader stock market faced its biggest selloff since last week's North Korea-fueled jitters. The S&P 500 index meanwhile, ended down 1.5% at 2,430 and the Nasdaq Composite Index shed 1.9% at 6,221.

Concerns have grown over Trump's ability to push through his economic goals such as tax cuts and infrastructure spending following the exodus of executives from two prominent business councils in reaction to his response to clashes last weekend in Charlottesville, Virginia.

Trump on Thursday, 17 August 2017, again decried the removal of pro-slavery Civil War Confederacy monuments, which have fuelled US racial tensions, stoking worries that some of his key policy staffers and aides may quit.

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First Published: Aug 18 2017 | 2:21 PM IST

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