Local stocks drifted lower in early trade on negative Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 183.33 points or 0.49% at 37,213.91. The Nifty 50 index was down 72.05 points or 0.65% at 11,013.35.
The S&P BSE Mid-Cap index was down 1.31%. The S&P BSE Small-Cap index was down 1.12%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 330 shares rose and 1041 shares fell. A total of 32 shares were unchanged.
Overseas, Asian shares were trading lower on Wednesday amid dampened expectations for a resolution to the U.S.-China trade war. China's factory activity contracted for the third straight month in July, according to official data released on Wednesday. The official manufacturing Purchasing Managers' Index (PMI) for July came in at 49.7 from June's reading of 49.4, according to data from the Chinese statistics bureau.
US stocks drifted lower Tuesday as President Trump renewed his attacks on China, quashing hopes for a speedy resolution to trade tensions. Investors also digested another round of mixed corporate earnings and awaited a crucial Federal Reserve decision.
President Trump ratcheted up pressure on China to quickly reach a trade deal, warning that if he is re-elected next year, the terms of an agreement would be much tougher than what is currently being discussed. US delegates including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are in Shanghai for meetings with their Chinese counterparts, but hopes remain low for a breakthrough as neither side appears eager to make a deal.
The US Federal Reserve's two-day policy meeting concludes today, 31 July 2019 and it is widely anticipated to cut benchmark rates by at least 25 basis points to combat headwinds from the China-US trade dispute and signs of slowing economic growth outside of the US.
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Back home, Axis Bank dropped 5.94%. The bank's net profit jumped 95.42% to Rs 1370.08 crore on 21.79% rise in total income to Rs 19123.71 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 30 July 2019.
Hero MotoCorp slipped 0.25%. The company's consolidated net profit rose 36.05% to Rs 1252.22 crore on 1.33% rise in total income to Rs 9155.87 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 30 July 2019.
Tech Mahindra dropped 3.76% after consolidated net profit declined 15.29% to Rs 959.30 crore on 2.69% decline in net sales to Rs 8653 crore in Q1 June 2019 over Q4 March 2019. The result was announced after market hours yesterday, 30 July 2019.
RBL Bank fell 0.94%. The bank clarified after market hours yesterday, 30 July 2019 that the bank has exposures to certain operating entities of the Coffee Day Group in the logistics, coffee and real estate businesses. The credit facilities that are largely working capital in nature, are secured by primary securities, as well as some collaterals of land and marketable securities. All the loan accounts are standard and performing.
PNB Housing Finance dropped 7.1%. The company's net profit rose 56.67% to Rs 368.25 crore on 42.52% rise in total income to Rs 2303.15 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 30 July 2019.
Vaibhav Global lost 2.6%. The company's consolidated net profit rose 19.83% to Rs 36.01 crore on 12.59% rise in total income to Rs 443.68 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 30 July 2019.
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