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Nifty hovers below 11,000 mark; breadth negative

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Last Updated : Feb 08 2019 | 11:50 AM IST

Key equity indices were hovering near day's low in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 220.50 points or 0.60% at 36,750.59. The Nifty 50 index was down 70.05 points or 0.63% at 10,999.35. The Nifty was trading below 11,000 mark after slipping below that level in morning trade.

The market opened lower and declined further as the session progressed. Negative leads from Asian markets and overnight slide on the Wall Street spoiled investors sentiment.

Selling was broad based. Among secondary barometers, the BSE Mid-Cap index was down 1.01%. The BSE Small-Cap index was down 0.53%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 743 shares rose and 1304 shares fell. A total of 104 shares were unchanged.

Metal shares declined. Steel Authority of India (down 2.88%), Jindal Steel & Power (down 2.75%), Vedanta (down 2.63%), JSW Steel (down 2.18%), Hindalco Industries (down 2.06%), Hindustan Copper (down 1.13%), NMDC (down 0.89%) and Hindustan Zinc (down 0.47%), edged lower. National Aluminium Company was up 0.68%.

Tata Steel was down 1.31%. The company will announce Q3 results today, 8 February 2019.

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Auto stocks declined. Escorts (down 2.31%), Eicher Motors (down 2.18%), Maruti Suzuki India (down 1.61%), Mahindra & Mahindra (down 1.58%), Ashok Leyland (down 1.31%), TVS Motor Company (down 1.12%) and Bajaj Auto (down 0.03%), edged lower. Hero MotoCorp was up 0.28%.

Tata Motors lost 18.23% after the company reported consolidated net loss of Rs 26992.54 crore in Q3 December 2018 as compared to net profit of Rs 1198.63 crore in Q3 December 2017. The result was announced after market hours yesterday, 7 February 2019.

Tata Motors consolidated total income rose 4.37% to Rs 77582.71 crore in Q3 December 2018 over Q3 December 2017. Tata Motors said that Q3 December 2018 was impacted by an exceptional item of asset impairment of Rs 27838 crore in Jaguar Land Rover (JLR). Weak sales in China and de-stocking impacted JLR performance.

N Chandrasekaran, Chairman commented that Tata Motors domestic business continues the strong momentum and has delivered market share gains as well as profitable growth. In JLR, the market conditions continue to be challenging particularly in China. The company has taken decisive steps to step up competitiveness, reduce the costs and improve the cash flows while continuing to invest in exciting products and leading edge technologies.

In a separate announcement made after market hours yesterday, 7 February 2019, Jaguar Land Rover retail sales in January 2019 were 43,733 vehicles, down 10.9% compared to January last year. Strong sales of E-PACE, IPACE and refreshed Range Rover and Range Rover Sport were more than offset by continuing market weakness in China and the run out of the Range Rover Evoque, ahead of the introduction of the all new Evoque later this quarter.

Overseas, stocks in Asia slipped on Friday amid growing concerns over the trade fight between the US and China. President Donald Trump on Thursday said he would not meet with Chinese President Xi Jinping before the 2 March deadline to reach a Chinese-US trade deal.

Meanwhile, a round of weak data from the European Union underscored global growth concerns. German industrial production unexpectedly fell by 0.4% in December from the month before. Meanwhile, the European Commission cut its growth forecast for the shared currency bloc Thursday, predicting that the 19-member eurozone will collectively grow by just 1.3% this year, down from the 1.9% forecast in November.

US stock benchmarks on Thursday finished the session firmly lower as worries about sluggish growth outside of the US and diminishing expectations for a quick resolution to a US-China trade spat, buffeted markets.

The number of Americans applying for jobless benefits fell in the week ended 2 February by 19,000 to 234,000.

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First Published: Feb 08 2019 | 11:23 AM IST

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