Don’t miss the latest developments in business and finance.

Market drops on weak global cues

Image
Capital Market
Last Updated : Dec 02 2016 | 4:01 PM IST

Key benchmark indices suffered severe setback on last trading day of the week weighed by losses in index heavyweights ITC and HDFC. The barometer index, the S&P BSE Sensex, lost 329.26 points or 1.24% at 26,230.66, as per the provisional closing data. The Nifty 50 index lost 106.10 points or 1.3% at 8,086.80, as per the provisional closing data. Weakness in global stocks weighed adversely on the domestic bourses.

The breadth indicating the overall health of the market was weak. On BSE, 1,779 shares declined and 884 shares rose. A total of 128 shares were unchanged. The BSE Mid-Cap index was provisionally off 1.26%. The BSE Small-Cap index was provisionally off 1.37%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2717.91 crore, lower than the turnover of Rs 2776.34 crore registered during the previous trading session.

Adani Ports and Special Economic Zone (down 3.64%), Asian Paints (down 3.13%), and GAIL (India) (down 1.92%) edged lower from the Sensex pack.

Auto stocks declined. Escorts (down 1.62%), Ashok Leyland (down 3.16%), Mahindra & Mahindra (M&M) (down 1.09%) and Maruti Suzuki India (down 3.56%) fell. Eicher Motors (up 3.15%) gained.

Tata Motors fell 3.5% after the company reported flat sales in November 2016. Tata Motors said its passenger and commercial vehicle total sales in November 2016 were at 38,900 units, almost flat compared with 38,918 vehicles sold in November 2015. The company's domestic sales of Tata commercial and passenger vehicles declined 6% to 33,274 units in November 2016 over November 2015. Exports surged 57% to 5,626 units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.

Bajaj Auto rose 1.3%. The company said its total sales fell 13% to 2.69 lakh units in November 2016 over November 2015. Bajaj Auto's domestic sales fell 10% to 1.54 lakh units in November 2016 over November 2015. Exports declined 16% to 1.15 lakh units in October 2016 over October 2015. The announcement was made before trading hours today, 2 December 2016.

More From This Section

Total motorcycle sales fell 12% to 2.37 lakh units in November 2016 over November 2015. Total commercial vehicles sales fell 17% to 32,191 lakh units in November 2016 over November 2015.

Hero MotoCorp rose 0.68% after total sales declined 13.07% to 4.79 lakh units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.

Hero MotoCorp, which posted record festive sales this year, saw a drop in retail sales after the demonetisation initiative when the entire industry also witnessed decline in sales. With the slew of measures being implemented by the government, and several initiatives immediately undertaken by Hero MotoCorp to support its dealers and consumers, the company expects the situation to steadily improve.

TVS Motor Company fell 2.64% after the company reported a 0.19% decline in total sales at 2.24 lakh units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.

TVS Motor Company said that due to the demonetization exercise, the company witnessed a short-term impact on November sales. However, the company is seeing a sales pickup already happening.

Overseas, Asian and European stocks declined on global uncertainties as investors adopted a wait-and-see mood. Later today, 2 December 2016, the US Labor Department will release its closely watched monthly employment report for November. Investors are awaiting US payrolls report for confirmation the US economy continues to strengthen, with an eye on an expected hike in benchmark US interest rates by the Federal Reserve at its meeting on 13-14 December.

Investors are also concerned about Italy's constitutional referendum on Sunday, 4 December 2016 which could determine whether or not the country will remain in the euro zone. A sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red yesterday, 1 December 2016 while the Dow Jones Industrial Average managed to notch a record closing high with a lift from bank and energy shares.

Powered by Capital Market - Live News

Also Read

First Published: Dec 02 2016 | 3:34 PM IST

Next Story