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Sensex drops below 35,000 on negative global stocks

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Capital Market
Last Updated : May 29 2018 | 3:50 PM IST

Key benchmark indices logged modest losses in volatile session of trade weighed by slide in bank stocks. The barometer index, the S&P BSE Sensex, lost 216.24 points or 0.61% at 34,949.24, as per the provisional closing data. The Nifty 50 index lost 55.35 points or 0.52% at 10,633.30, as per the provisional closing data. The Sensex provisionally settled below the psychological 35,000 mark after sliding below that level in intraday trade. Shares of index heavyweight HDFC declined. Negative global cues dampened sentiment.

Domestic stocks nudged lower in early trade on negative Asian stocks. A bout of volatility was seen in morning trade as the key benchmark indices gyrated in positive and negative zone. Key benchmark indices hit fresh intraday high in positive zone in afternoon trade. Market once again turned weakened in mid-afternoon trade. Fresh selling pulled the key benchmark indices to fresh intraday low in late trade.

The S&P BSE Mid-Cap index fell 0.44%. The S&P BSE Small-Cap index fell 0.26%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,242 shares rose and 1,438 shares fell. A total of 163 shares were unchanged.

Index heavyweight and housing finance major HDFC lost 1.22% to Rs 1,808.

Mahindra & Mahindra (M&M) rose 2.99% after the company reported good Q4 March 2018 results during trading hours today, 29 May 2018. The results for M&M include the combined results of M&M and Mahindra Vehicle Manufacturers Limited (MVML), which is a manufacturing unit of M&M.

Combined profit from ordinary activities after tax (after EI) rose 50% to Rs 1155 crore in Q4 March 2018 over Q4 March 2017. Combined revenue rose 26% to 13189 crore in Q4 March 2018 over Q4 March 2017. Combined (OPM) was reported at 15.1% in Q4 March 2018, higher than 11.2% in Q4 March 2017.

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For the year FY 2018, improvement in overall economic sentiment, two consecutive years of normal monsoon, government's focus on development of agri and rural sectors, with continued investment in Infrastructure, coupled with easy availability of affordable finance, helped drive the demand for the automotive as well as the tractor industry, M&M said in a statement.

For Q4 March 2018, the domestic auto industry (excluding 2W) grew 19%, with the passenger vehicles reporting a growth of 7% and the UV segment a growth 25%. The domestic tractor industry witnessed a very high growth of 44%. In Q4 March 2018, the domestic automotive volume for the company grew 20% while the domestic tractor volumes grew 44%, it said.

In its outlook, M&M said economic activity is expected to gather pace as the transitory effects of implementation of the goods and services tax (GST) recede. This outlook will also be lifted by tailwinds from normal rainfall with the weather bureau forecasting a 'normal' monsoon for the third successive year in its first stage long range forecast. While the spatial and temporal distribution remain to be seen, well spread out rainfall is likely to have a salutary impact on the overall demand conditions. However, rising crude oil prices, which have already risen noticeably, call for greater prudence. Global growth backdrop too remains benign with the synchronised cyclical rebound. However, escalation in geo-political risks, trade frictions, tightening monetary conditions, and higher crude oil prices could pose downside risks to global trade and demand growth outlook, M&M added.

Coal India fell 0.88% after net profit dropped 52.35% to Rs 1295.34 crore on 8.54% rise in total income to Rs 28909.32 crore in Q4 March 2018 over Q4 March 2017. The result was announced during market hours today, 29 May 2018.

Larsen & Toubro (L&T) rose 0.39% after consolidated net profit rose 4.95% to Rs 3337.95 crore on 11.09% rise in net sales to Rs 40678.10 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 28 May 2018.

The order intake for the quarter ended 31 March 2018 at Rs 49557 crore, grew by 5% year-on-year. International order inflow during the quarter at Rs 8678 crore, constituted 18% of the order inflow for the quarter.

Consolidated order book of the group stood at Rs 263107 crore as at 31 March 2018, with international order book constituting 24% of the total order book.

L&T said it expects to continue its planned trajectory of profitable and steady growth which, along with its many value enhancing measures, is aimed at improving shareholder returns on a sustainable basis.

Bharat Heavy Electricals rose 5.43% after net profit surged 112.09% to Rs 457.17 crore on 1.29% decline in total income to Rs 10341.58 crore in Q4 March 2018 over Q4 March 2017. The result was announced during trading hours today, 29 May 2018.

Bharat Heavy Electricals (Bhel) said in a statement that prudent strategies of garnering higher market share in a shrunken and highly competitive business environment enabled Bhel to book orders worth Rs 40932 crore in FY 2017-2018. Significantly, this is a quantum jump of 74% over FY 2016-2017. The orders comprise of Rs 33342 crore in the power segment and Rs 7590 crore in the industry and overseas segments combined. Significantly, Bhel has maintained its leadership position with 100% market share in the conventional thermal power equipment business. With this, Bhel has ended the year with a total order book of over Rs 118000 crore-highest in last five years.

Overseas, European stocks fell amid renewed fears of a euro zone break-up risk in Italy and political turmoil in Spain. Most Asian stocks were trading lower as the political crisis in Italy worsened as a fresh election appeared likely in the eurozone's third-largest economy. US markets remained closed yesterday, 28 May 2018 for Memorial Day. UK markets were also closed yesterday, 28 May 2018 for the spring bank holiday.

The leader of Italy's Five Star Movement party reportedly called for the country's president, Sergio Mattarella, to be impeached after the latter chose to veto a pick for economy minister. Mattarella on Monday appointed a former International Monetary Fund economist to the role of interim prime minister, with snap elections expected. Markets fear a snap election will turn into referendum on Italy's euro membership.

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First Published: May 29 2018 | 3:41 PM IST

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