Trading for the week ended on a subdued note as key indices provisionally settled with modest losses as jump in India's trade deficit in January 2018 weighed on sentiment. The barometer index, the S&P BSE Sensex, fell 286.71 points or 0.84% at 34,010.76, as per the provisional closing data. The Nifty 50 index dropped 99.10 points or 0.94% at 10,446.40, as per the provisional closing data. The Sensex provisionally closed a tad above the psychological 34,000 mark after slipping below that mark in late trade.
Also, a rise in global crude oil prices off late has also hit the market sentiment. India imports majority of its crude oil requirements and a surge in crude prices will add to the country's fiscal deficit.
Domestic markets opened with modest gains tracking surge in US stocks in the previous session amid holiday thinned trade in Asian markets. Stocks soon trimmed initial gains in morning trade and later slipped into the red in mid-morning trade. Indices languished in negative zone till afternoon trade. Stocks extended losses and hit fresh day's low later during the day.
Among secondary indices, the S&P BSE Mid-Cap index provisionally fell 1.2%. The S&P BSE Small-Cap index provisionally dropped 1.22%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was quite weak. There were almost three losers for every gainer. On the BSE, 2,078 shares declined and 726 shares advanced. A total of 114 shares were unchanged.
The total turnover on BSE amounted to Rs 4041.23 crore, higher than the turnover of Rs 3994.81 crore registered during the previous trading session.
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The Sensex gained 210.77 points or 0.61% at the day's high of 34,508.24 in early trade. The index slumped 340.14 points or 1% at the day's low of 33,957.33 in late trade, its lowest level since 9 February 2018. The Nifty gained 67.40 points or 0.64% at the day's high of 10,612.90 in early trade. The index dropped 111.45 points or 1.06% at the day's low of 10,434.05 in late trade, its lowest level since 9 February 2018.
Metal and mining stocks dropped. Hindustan Zinc was down 0.4%, Vedanta 1.5%, Hindalco Industries 1.69%, Jindal Steel & Power 4.78%, Tata Steel 1.96%, Hindustan Copper 2.81%, NMDC 3.15%, Steel Authority of India 4.87% and National Aluminum Company skidded 6.58%. However, JSW Steel gained 1.12%.
Fortis Healthcare skidded 4.31% after the Supreme Court allowed the company's lenders to sell shares pledged by promoters. The company made the announcement after market hours yesterday, 15 February 2018.
This is in continuation to letters dated 11 August 2017 and 31 August 2017, whereby Fortis Healthcare had informed that, in the matter relating to Daiichi Sankyo Company v/s Oscar Investments & Others, the Supreme Court of India had directed to maintain status quo with regards to the holding of Fortis Healthcare Holding (FHHPL), a promoter group entity, in the company for both the encumbered and unencumbered shares.
In the said matter, the Supreme Court of India yesterday, 15 February 2018, clarified that the direction to maintain status quo shall not apply to shares of the company held by FHHPL as may have been encumbered on or before the interim orders dated 11 and 31 August 2017.
Motherson Sumi Systems lost 4.42% to Rs 326.60 on high volumes after three bulk deals were executed on the scrip on BSE today, 16 February 2018. Among the three bulk deals executed on the Motherson Sumi Systems scrip, the first bulk deal of 10.02 lakh shares was executed at Rs 321.45 per share at 11:08 IST on BSE. Second bulk deal of 9.76 lakh shares was executed at Rs 323.65 per share at 11:59 IST on BSE. Third bulk deal of 5.03 lakh shares was executed at Rs 323.90 per share at 12:10 IST on BSE.
Lloyds Metals & Energy rose 1.76% after the company said that it has signed memorandum of understanding (MOU) with Government of Maharashtra to facilitate investment in respect of the proposed mineral based steel plant at Gadchiroli district, Maharashtra, with an investment of Rs 700 crore. The announcement was made during market hours today, 16 February 2018.
On the macroeconomic data front, India's merchandise exports increased 9.1% to $24.38 billion in January 2018 over a year ago. Meanwhile, merchandise imports surged 26.1% to $40.68 billion. The trade deficit jumped 64.6% to $16.30 billion in January 2018 from $9.9 billion in January 2017.
Overseas, European stocks gained following US stocks in their recovery effort. However, it is a shortened week for greater China markets, with mainland China markets remaining shut from 15 to 21 February 2018 and Hong Kong markets shut from 16 to 19 February 2018 for the Lunar New Year. Most of the other Asian markets were also closed for a holiday.
US stocks rose for the fifth day in a row yesterday 15 February 2018, led by technology stocks. They have now recovered about half of their losses during the market's dramatic plunge earlier this month on worries over higher inflation and rising treasury yields. In economic news, the Labor Department said US wholesale prices rose 0.4% in January, the biggest increase since November.
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