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Market opens on weak note on negative global stocks

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Last Updated : Jul 09 2021 | 9:50 AM IST

Key benchmark indices are trading on a weak note in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 225.77 points or 0.43% at 52,343.17. The Nifty 50 index was down 59.50 points or 0.38% at 15,668.40. Asian stocks are trading lower on Friday as Covid worries resurfaced in the region.

The S&P BSE Mid-Cap index was up 0.35%. The S&P BSE Small-Cap index was up 0.23%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1416 shares rose and 1053 shares fell. A total of 101 shares were unchanged.

Stocks in news:

Tata Consultancy Services (TCS) fell 0.94%. TCS reported 2.57% fall in net profit to Rs 9008 crore on 3.9% rise in revenue to Rs 45,411 crore in Q1 June 2021 over Q4 March 2021.

Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals. We are well positioned and operating diligently to participate in them aggressively.

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Tata Steel rose 1.11%. Tata Steel said that ratings agency CARE has upgraded long term credit rating on the company to AA+ from AA and the outlook to Stable from Negative. The revision in rating and outlook assigned to the instruments of Tata Steel factors in the improvement in performance witnessed during FY21, sequentially from Q2-FY21 onwards, particularly in Indian operations, on the back of revival in demand and increased steel prices leading to substantial cash flow generation and sizeable deleveraging at the end of FY21 resulting in improvement in debt coverage indicators.

Bharat Dynamics advanced 3.57%. Bharat Dynamics has signed a contract worth about Rs.499 crore with Ministry of Defence for manufacture and supply of Akash Missiles to the Indian Air Force.

JSW Steel rose 1.23%. JSW Steel combined crude steel production stood at 5.07 million tonnes registering a 65% year on year jump in Q1 FY22 from 3.07 million tonnes posted in Q1 FY21.

Jammu & Kashmir Bank fell 0.38%. The bank said that the Reserve Bank of has imposed a penalty of Rs 1 crore on the bank, on account of contravention of directions contained in circulars on 'Lending to Non Banking Financial Companies (NBFCs) and Bank Finance to Non Banking Financial Companies (NBFCs)'.

Global Markets:

Asian stocks are trading lower on Friday as Covid worries resurfaced in the region.

China's consumer price index for June rose 1.1% as compared with a year ago, data from the country's National Bureau of Statistics showed on Friday. The producer price index for June rose 8.8% as compared with a year ago. The June PPI reading was a slight decrease in pace from the 9% increase in May.

Olympics organizers will ban spectators from the upcoming summer games in Tokyo, after a state of emergency for the city was declared by Japan on Thursday as the country sees rising Covid-19 cases. The state of emergency will last till August 22.

South Korea announced Friday that the greater Seoul area will be placed under the toughest social distancing rules of Level 4, as per reports. The city of Sydney earlier this week announced that Covid-19 restrictions would be extended by another week.

Wall Street lost ground on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs in a broad sell-off driven by uncertainties surrounding the pace of the U.S. economic recovery.

Back home, the domestic equity benchmarks ended with steep losses on Thursday. Global stock markets declined as the Delta variant of the coronavirus threatens a new wave of the pandemic. The barometer index, the S&P BSE Sensex, skid 485.82 points or 0.92% at 52,568.94. The Nifty 50 index slipped 151.75 points or 0.96% at 15,727.90.

Foreign portfolio investors (FPIs) sold shares worth Rs 554.92 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 949.18 crore in the Indian equity market on 8 July, provisional data showed.

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First Published: Jul 09 2021 | 9:37 AM IST

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