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Sensex, Nifty drop as pivotals slide

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Last Updated : Apr 10 2019 | 4:04 PM IST

The barometer index, the S&P BSE Sensex, dropped 353.87 points or 0.91% at 38,585.35. The Nifty 50 index lost 87.65 points or 0.75% at 11,584.30. Trading sentiment was dented by the International Monetary Fund (IMF) lowering global economic growth outlook. Investors were also cautious ahead of Q4 March 2019 earnings beginning later this week.

Local stocks drifted lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade. Key indices continued to trade with weakness in early afternoon trade. The Sensex and the Nifty continued trading with small losses in afternoon trade. Indices extended slide in mid-afternoon trade. Fresh selling in index pivotals dragged the key benchmark indices to intrday low in late trade.

The S&P BSE Mid-Cap index fell 0.33%. The S&P BSE Small-Cap index fell 0.02%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1142 shares rose and 1399 shares fell. A total of 170 shares were unchanged.

Tata Motors gained 4.68%. The Tata Motors Group global wholesales in March 2019, including Jaguar Land Rover, were at 1,45,459 units, lower by 5%, as compared to March 2018. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in March 2019 were at 57,163 units, higher by 1%, over March 2018. Global wholesales of all passenger vehicles in March 2019 were at 88,314 units, lower by 9%, compared to March 2018. The announcement was made during market hours today, 10 April 2019.

Tata Consultancy Services (TCS) fell 2.12%. TCS during market hours today announced the world's first successful cross-border securities settlement between two central securities depositories (CSDs) - Maroclear, the CSD of Morocco, and Kuwait Clearing Company, the CSD of Kuwait - using cash coins on the BaNCS Network, powered by Quartz Blockchain.

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IndusInd Bank dropped 1.09%. IndusInd Bank priced its maiden USD bond issuance in the offshore public markets. The bank raised $400 million at a coupon rate of 3.875% per annum, payable semi-annually. Notes will be listed on Singapore SGX and the India INX, Gift City. The announcement was made after trading hours yesterday, 9 April 2019.

Hindalco Industries fell 2.47%. Hindalco Industries announced that there was an incident in the red mud (bauxite residue) storage area connected to the alumina plant situated at Muri in Jharkhand on 9 April 2019. The incident involved a spillage in the red mud cake storage area.

As a precautionary measure, operations have been temporarily suspended to assess the situation. Preliminary investigations indicate no material impact on the surrounding environment or to property. Efforts are ongoing to clear the spillage. Four persons with minor injuries have been treated, and one contract workman is missing. This incident is not expected to have any material impact on the company's performance, the company said.

Overseas, European shares were trading higher Wednesday. Market focus is largely attuned to global trade developments, after the U.S. and Europe locked horns over tariffs in the previous session. Meanwhile, policymakers at the European Central bank (ECB) will meet in Frankfurt on Wednesday, to decide on interest rates.

Asian shares were mixed as the IMF lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated.

U.S. stocks closed lower Tuesday, with the S&P 500 snapping its eight-day winning streak, on fears over escalation of trade tensions with the European Union and a weaker global outlook from IMF.

The office of the U.S. Trade Representative threatened to levy tariffs on many European goods late Monday. The threat is a retaliation against European companies' subsidies for aircraft manufacturer Airbus. If the U.S. follows through, the proposed tariffs would affect about $11 billion in imports to the U.S., including helicopters, bicycles, cheese and wine. Lighthizer said the Trump administration would wait for World Trade Organization clearance to implement the duties.

The IMF lowered the outlook for global economic growth in 2019 to 3.3% from 3.5% projected in January, marking its third reduction of growth expectations in six months. The decline has been broadly felt, with all advanced economies, including the U.S., and most major emerging-market economies seeing deterioration in their outlook.

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First Published: Apr 10 2019 | 3:49 PM IST

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