Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade despite higher Asian stocks. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 102.33 points or 0.32% at 32,135.55. The Nifty 50 index was down 18.25 points or 0.18% at 9,995.40. Nifty once again fell below the psychologically important 10,000 mark after swinging above and below that mark so far.
Key indices had opened slightly higher on firm Asian stocks but soon dropped in the red. Stocks swung between gains and losses near the flat line in morning trade. Market extended losses in mid-morning trade.
The S&P BSE Mid-Cap index fell 0.35%. The decline in the index was higher than the Sensex's fall in percentage terms. The S&P BSE Small-Cap index shed 0.25%. The decline in the index was lower than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,303 shares fell and 905 shares rose. A total of 130 shares were unchanged.
Cement stocks were mixed. ACC (up 0.44%), Ambuja Cements (up 0.35%), and UltraTech Cement (up 0.15%), gained. Shree Cement declined 0.29%.
Grasim Industries declined 1.12%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Telecom stocks declined. Reliance Communications (down 1.08%), Bharti Airtel (down 1.53%), and Idea Cellular (down 1.18%) declined. Tata Teleservices (Maharashtra) rose 2.65%.
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Shares of Bharti Infratel rose 0.16%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Esab India lost 3.39% after net profit fell 1.73% to Rs 9.07 crore on 8.65% increase in total income from operations to Rs 139.69 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 3 August 2017.
JBF Industries rose 1.43% after the company said its board will meet on 10 August 2017 to consider selling overseas subsidiaries to reduce debt. The announcement was made after market hours yesterday, 3 August 2017. JBF Industries informed that the board of directors will discuss the sale or restructure or reorganisation of the overseas subsidiaries of the company for the reduction in debt exposure of the company in their meeting to be held on 10 August 2017.
The company also informed that domestic plants in India at Sarigam and Silvassa for producing polyester chips, yarns and texturised Yarns are operating in normalcy. The work at the PTA plant in Mangalore is continuing as per schedule and is expected to re-commission within the first half of financial year 2017-2018. This plant is being setup with the latest technology of British Petroleum and will be having a capacity of 1.25 million tons per annum.
India Meteorological Department said that actual cumulative area weighted rainfall (mm) for the country as a whole till 2 August 2017 equaled normal rainfall.
Meanwhile, the Banking Regulation (Amendment) Bill 2017 was passed by the lower house of the parliament yesterday, 3 August 2017. It will replace the Non-Performing Assets Ordinance, which came into effect earlier this year. The measure allows the RBI to initiate insolvency resolution process on specific stressed-assets. The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed-asset resolution.
Overseas, most Asian stocks rose ahead of the US employment report. In US, Dow Jones Industrials Average managed to post slight gains, staying above the 22,000 level and hitting fresh record high while, the S&P 500 index and Nasdaq Composite index closed lower weighed down by Amazon.com, Apple and other top-shelf technology stocks yesterday, 3 August 2017.
Labor Department data showed weekly jobless claims fell last week, pointing to a tightening labour market, while a report from the Institute for Supply Management showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. US employment report for July is due later during the global day.
In Europe, the Bank of England (BOE) yesterday, 3 August 2017, held interest rates steady at 0.25%, as expected, while largely sticking to its previous assumptions for growth and inflation over the three-year forecast horizon. The Monetary Policy Committee (MPC) voted by a majority of 6-2 to keep rates at record low levels in August. Meantime, the UK's central bank maintained stock levels of government bonds and corporate bonds at 435 billion and 10 billion respectively.
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