Weakness continued on the bourses in early afternoon trade amid negative global stocks. At 12:16 IST, the barometer index, the S&P BSE Sensex, was down 312.84 points or 0.89% at 34,753.91. The Nifty 50 index declined 91.05 points or 0.85% at 10,669.55. The Sensex was trading below the 35,000 level after slipping below that level in intraday trade.
Key indices opened on a weaker note tracking slide in Asian markets and sharp decline in US stocks. Later, indices languished in negative terrain so far. Global stocks declined after a stronger-than-expected US jobs report sent bond yields surging. Also, the trading of US index futures showed a weak opening of US stocks today, 5 February 2018.
Among the secondary indices, the S&P BSE Mid-Cap index declined 0.69%, outperforming the Sensex. The S&P BSE Small-Cap index lost 0.96%, underperforming the Sensex.
Investor sentiment remained negative after Finance Minister Arun Jaitley announced long term capital gains (LTCG) tax in Union Budget 2018. The Budget proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10%.
The broad market depicted weakness. There were more than 2 losers against every gainer on the BSE. 1,855 shares fell and 761 shares rose. A total of 140 shares were unchanged.
Metal and mining stocks were mixed. Vedanta (down 1.87%), Hindalco Industries (down 1.42%), Tata Steel (down 0.84%), JSW Steel (down 0.52%) and SAIL (down 0.42%) fell. Nalco (up 2.5%), Jindal Steel & Power (up 1.7%), NMDC (up 0.64%) and Hindustan Zinc (up 0.14%) gained.
Shares of power generation and power distribution stocks advanced. Adani Power (up 0.15%), JSW Energy (up 0.3%), Tata Power Company (up 0.35%), NHPC (up 0.36%), NTPC (up 1.15%), Adani Transmission (up 1.32%), Reliance Power (up 1.7%), Power Grid Corporation of India (up 2.08%) and GMR Infrastructure (up 4.16%) gained. Torrent Power (down 2.84%), Reliance Infrastructure (down 1.27%) and CESC (down 0.94%) declined.
Also Read
Shares of Coal India were up 1.06% at Rs 295.25. The minister of railways and coal Piyush Goyal in a written reply to a question in Rajya Sabha on Friday, 2 February 2018 stated that the supply of coal to the power sector has risen to 210.3 million tonnes (MT) in the first six months of this fiscal against 195.2 MT during the corresponding period of 2016-17, thus recording growth of 7.74% (provisional).
V2 Retail dropped 2.59% after net profit declined 59.8% to Rs 13.67 crore on 0.3% fall in net sales to Rs 152.35 crore in Q3 December 2017 over Q3 December 2016. The result was announced on Saturday, 3 February 2018.
Seshasayee Paper and Boards tumbled 8.26% after net profit fell 10.32% to Rs 30.92 crore on 2.88% rise in total income to Rs 301.73 crore in Q3 December 2017 over Q3 December 2016. The result was announced on Saturday, 3 February 2018.
On the macro front, Markit Economics data of a monthly survey on the performance of India's services sector in January 2018 showed that the Nikkei India Services PMI increased to 51.7 in January from 50.9 in December 2017.
Overseas, Asian stocks edged lower following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services purchasing managers' index (PMI) increased to 51.9 in January from 51.2 in December 2017.
China's Caixin services PMI rose to 54.7 in January from December's 53.9, expanding at its fastest pace in almost six years, data released today, 5 February 2018 showed. The 50-mark separates growth from contraction on a monthly basis.
Trading of US index futures showed that Dow could slip 165 points at the opening bell today, 5 February 2018. US stocks fell sharply on Friday, 2 February 2018 on surging bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content