Key benchmark indices languished in the red in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 96.77 points or 0.3% at 32,141.11. The Nifty 50 index was down 11.20 points or 0.11% at 10,002.45. Nifty was trading above the psychologically important 10,000 mark after swinging above and below that mark so far. Caution prevailed in global stocks ahead of US nonfarm payroll data for July, which is due later in the global day.
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 languished in the red after extending losses in mid-morning trade.
The S&P BSE Mid-Cap index fell 0.11%. The S&P BSE Small-Cap index shed 0.13%. The decline in both the indices was lower than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,359 shares fell and 943 shares rose. A total of 144 shares were unchanged.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 1.32%), Bhushan Steel (up 1.11%), Vedanta (up 1.6%), Hindalco Industries (up 1.15%), Hindustan Zinc (up 1.03%), Tata Steel (up 1.41%), Steel Authority of India (Sail) (up 0.49%), National Aluminum Company (up 1.5%) and NMDC (up 1.11%) gained. Hindustan Copper (down 0.88%) and Jindal Steel & Power (down 3.23%) declined. High Grade Copper for September 2017 delivery was currently up 0.47% at $2.8915 per pound on the COMEX.
Auto stocks were mixed. Ashok Leyland (down 1.88%), Eicher Motors (down 0.09%) and Bajaj Auto (down 0.1%) declined. TVS Motor Company (up 0.6%), Maruti Suzuki India (up 0.47%), Hero MotoCorp (up 2.29%), and Tata Motors (up 0.95%) gained.
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Mahindra & Mahindra (M&M) shed 0.48% ahead of its Q1 results today, 4 August 2017.
M&M informed that the loans & investment committee of directors approved selling up to 96.66 lakh equity shares, or 13.74% equity of the company in Mahindra Logistics (MLL), a subsidiary of M&M, as part of the proposed initial public offering of MLL. The announcement was made after market hours yesterday, 3 August 2017.
Ceat lost 6.88% after consolidated net profit dropped 98.66% to Rs 1.38 crore on 0.83% growth in total income to Rs 1473.71 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 3 August 2017.
Anant Goenka, Managing Director, Ceat said that Q1 June 2017 was a challenging quarter in light of destocking by the channel partner due to GST and high raw material prices.
Ujjivan Financial Services fell 1.84% after reporting consolidated net loss of Rs 74.94 crore in Q1 June 2017 compared with net profit of Rs 71.37 crore in Q1 June 2016. The result was announced after market hours yesterday, 3 August 2017. On a consolidated basis, Ujjivan Financial Services' total income rose 8.90% to Rs 358.64 crore in Q1 June 2016.
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, Asian stocks were mixed 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.
The closely watched Ifo business-sentiment index rose last month to its highest level since German reunification. Germany's economics ministry said that total orders for the important manufacturing sector increased by 1% compared with May, adjusted for seasonal swings and calendar effects.
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