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Market drops sharply on weak global stocks

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Capital Market
Last Updated : Mar 25 2019 | 3:50 PM IST

Key benchmark indices ended with sharp losses on weak global stocks. The barometer index, the S&P BSE Sensex, lost 355.70 points or 0.93% at 37,808.91. The Nifty 50 index lost 102.65 points or 0.9% at 11,354.25. The Sensex settled below the psychological 38,000 level after sliding below that level in early trade.

Trading for the week began on a subdued note as domestic stocks dropped in early trade on negative Asian stocks. Stocks traded with weakness in morning trade. Weakness persisted on the bourses till afternoon trade. Key indices hit fresh intraday low in mid-afternoon trade on fresh selling in index pivotals. Stocks cut losses in late trade.

Selling was broad based. The S&P BSE Mid-Cap index fell 1.06%. The S&P BSE Small-Cap index fell 1.16%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 792 shares rose and 1883 shares fell. A total of 194 shares were unchanged.

L&T dropped 1.18%. L&T Construction, the construction arm of L&T, was awarded large contracts for its Buildings and Factories and Water and Effluent Treatment businesses. The announcement was made during market hours today, 25 March 2019.

Infosys fell 1.23%. Infosys Foundation, the philanthropic and CSR arm of Infosys, has signed a Memorandum of Understanding (MoU) with the Bhandarkar Oriental Research Institute, Pune, for five years to strengthen research activities in Orientology, the study of Ancient cultures of the Asian subcontinent. The announcement was made during market hours today, 25 March 2019.

Infosys said it will invest $10 million in US-based artificial intelligence-focussed venture capital fund, The House Fund II. The transaction is expected to be completed before the first quarter of the financial year 2019-2020. Minority holding in the proposed transaction will not exceed 20% of the total fund size. The announcement was made after market hours on Friday, 22 March 2019.

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NTPC rose 1.23%. NTPC sad that Unit-3 of 250 MW of Bongaigaon Thermal Power Project (3 X 250 MW) will be declared on commercial operation with effect from 26 March 2019. With this, the commercial capacity of Bongaigaon Thermal Power Project, NTPC and NTPC group would become 750 MW, 45065 MW and 52206 MW respectively. The announcement was made during market hours today, 25 March 2019.

Dr Reddy's Laboratories rose 0.44%. Dr Reddy's Laboratories announced that the audit of research and development facility of Aurigene Discovery Technologies, a wholly owned subsidiary, situated at Miyapur, Hyderabad by the US Food and Drug Administration (USFDA), completed on 21 March 2019. No FDA 483 was issued at the end of inspection. The announcement was made after market hours on Friday, 22 March 2019.

Overseas, European and Asian markets edged lower Monday, amid rising worries of an impending recession in the U.S. US stocks closed sharply lower Friday, after a downbeat round of economic data in Europe and the US stoked global growth fears while a closely watched measure of the yield curve inverted for the first time since 2007, triggering recession worries.

Meanwhile, at a pivotal European Council summit where meetings overran dramatically, the European Union offered the U.K. a two-pronged plan to extend Brexit beyond the March 29 deadline. The U.K. will be offered a delay until May 22, if MPs approve the deal Prime Minister Theresa May had negotiated. If not, the EU will support a shorter delay, to April 12 to formulate a new plan.

The flash PMI figure for the eurozone in March showed that the preliminary Markit PMI Composite figure, seasonally adjusted, was 51.3, below the February figure of 51.9.

According to the flash reading of IHS Markit's purchasing manager's index, the manufacturing index fell to 52.5 in March from 53 in February. US wholesale inventories rose 1.2% in January after a revised estimate of a 1.1% increase in December, the Commerce Department said.

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First Published: Mar 25 2019 | 3:34 PM IST

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