The benchmark indices hit fresh intraday low in morning trade. The sentiment was dampened after the head of the US central bank said he did not view the rate cut decision as the start of a lengthy series of rate cuts. Losses in the metal space dragged the indices lower.
At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 268.73 points or 0.72% at 37,212.39. The Nifty 50 index was down 47.45 points or 0.72% at 11,037.95.
The S&P BSE Mid-Cap index was down 0.33%. The S&P BSE Small-Cap index was down 0.35%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 753 shares rose and 949 shares fell. A total of 82 shares were unchanged.
Bharti Airtel was up 0.13% ahead of its Q1 result today.
Most metal shares fell. Hindalco Industries (down 3.15%), Vedanta (down 3.15%), Jindal Steel & Power (down 2.48%), Hindustan Zinc (down 1.75%), Steel Authority of India (down 1.64%), JSW Steel (down 1.45%), National Aluminium Company (down 1.32%) and Tata Steel (down 0.59%) declined.
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Hindustan Copper (up 2.62%) and NMDC (up 1.47%) advanced.
Most auto shares fell. TVS Motor Company (down 1.75%), Tata Motors (down 1%), Bajaj Auto (down 0.38%), Hero MotoCorp (down 0.25%) and Mahindra & Mahindra (down 0.19%) declined. Maruti Suzuki India was up 0.11%.
Escorts fell 1.17% after the tractor making company announced its monthly sales figures for the month of July 2019.
Escorts reported 13.4% decline in the tractor sales to 4860 units in July 2019 against 5610 units in July 2018. Domestic tractor sales fell by 17.8% to 4505 units while the exports registered a growth of 179.5% to 355 units in July 2019 over July 2018.
Eicher Motors gained 0.31%. The company's consolidated net profit fell 21.59% to Rs 451.77 crore on 5.56% fall in total income to Rs 2523.17 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Ashok Leyland rose 2.07%. The company's consolidated net profit fell 44.24% to Rs 247.21 crore on 8.53% fall in total income to Rs 6613.52 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Munjal Showa shed 0.20%. The shock absorbers maker's net profit fell 9.4% to Rs 15.73 crore on a 12.3% fall in the net sales to Rs 387.97 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Bosch fell 0.35%. The auto parts maker said that with a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend all manufacturing operations at the company's plant in Bidadi for 3 days from 1 August to 3 August 2019. The announcement was made after market hours yesterday, 31 July 2019.
Ajanta Pharma rose 1.59%. On a consolidated basis, the pharmaceutical company's net profit rose 8.4% to Rs 114.63 crore on a 19.8% rise in the net sales to Rs 611.94 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Reliance Capital gained 0.38%. The financial services company said that at the its request, ICRA and Brickwork Ratings India have withdrawn the rating assigned on the commercial paper (CP) programme of the company.
The company further added that it has fully repaid its CP on the due dates and the CP outstanding stands at zero from the peak outstanding amount of approximately Rs 3,500 crore.
Zee Entertainment Enterprises (ZEEL) fell 2.48%. The company's parent organization Essel Group announced that Invesco Oppenheimer Developing Markets Fund has agreed to make an additional investment in ZEEL. The fund has agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs. 4,224 Crore.
Along with ZEEL, Essel Group is also in the process of divesting some of its Non-Media Assets. The announcement was made after market hours yesterday, 31 July 2019.
Trent rose 3.90%. On a consolidated basis, Trent's net profit rose 4.7% to Rs 37.58 crore on a 30.1% rise in the net sales to Rs 799.88 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Overseas, most Asian stocks were trading lower Thursday after remarks by Fed Chair Jerome Powell dampened expectations for further cuts going forward. The Caixin/Markit factory Purchasing Managers' Index came in at 49.9 for July, from 49.4 in June.
US stocks closed sharply lower Wednesday with investors disappointed that the Federal Reserve cut interest rates in order to cushion the economy from the effects of President Trump's trade war with China, but refrained from suggesting further rate cuts were on the way.
The Federal Reserve on Wednesday trimmed its benchmark fed funds interest rate by a quarter-point, citing muted inflationary pressures and the implications of global developments. The vote was 8-2. The reduction in the fed funds rate - the first since 2008 - drops it to a range of 2% to 2.25%.
At his press conference, Fed chair Jerome Powell added that the Fed has moved to a somewhat more accommodative stance as part of a mid-cycle adjustment as trade tensions seem to be having a significant effect on the economy and the global manufacturing slowdown is a bigger factor than expected last year.
Overnight US and Chinese delegates, including Trade Secretary Robert Lighthizer and Treasury Secretary Steven Mnuchin, reportedly concluded the first round of talks since the G-20 gathering in May without any substantive developments on the tariff front. The United States and China will resume negotiations in Washington in early September.
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