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Sensex, Nifty hover near day's low

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Last Updated : May 06 2019 | 1:50 PM IST

Key benchmarks were trading near day's low in afternoon trade amid dismal global cues. At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 318.45 points or 0.82% at 38,644.81. The Nifty 50 index was down 101.30 points or 0.86% at 11,610.95. Global shares dropped as trade negotiations between the US and China appeared to be on the verge of collapse.

Domestic stocks opened on a weak note on negative Asian stocks. Stocks traded with weakness in morning trade. Weakness persisted on the bourses in mid-morning trade. Indices hovered near day's low in afternoon trade amid dismal global cues.

The S&P BSE Mid-Cap index was down 0.67%. The S&P BSE Small-Cap index was down 0.65%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 774 shares rose and 1500 shares fell. A total of 169 shares were unchanged.

Tata Motors (down 4.49%), HDFC (down 2.22%), IndusInd Bank (down 1.81%), Tata Steel (down 1.8%) and Asian Paints (down 1.44%), were the major Sensex losers.

ITC (up 1.05%), TCS (up 0.98%), Sun Pharmaceutical Industries (up 0.40%), ICICI Bank (up 0.27%) and Larsen & Toubro (up 0.18%), were the major Sensex gainers.

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Hindustan Unilever fell 1.43% after net profit rose 13.84% to Rs 1538 crore on 8.95% rise in net sales to Rs 9809 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours on Friday, 3 May 2019. The company posted a 7% rise in volume for the quarter, the company said in filing. The domestic consumer growth was recorded at 9%, the company added.

Prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage has driven margin improvement. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs 2321 crore, was up by 13% in Q4 March 2019 over Q4 March 2018.

Yes Bank dropped 3.90%. Yes Bank announced that ratings agency ICRA has downgraded long-term ratings of the bank with a Negative outlook. Ratings were removed from 'Watch with Negative Implications'. The announcement was made on Saturday, 4 May 2019.

Yes Bank informed that Reserve Bank of India (RBI) vide its Speaking Order dated 22 April 2019 imposed a penalty of Rs 11.25 lakh under Section 30(1) of the Payment and Settlement Systems Act, 2007. RBI has identified certain violations of RBI Circular dated 5 October 2011 on Domestic Money Transfer - Relaxations and Master Direction dated 11 October 2017 on Issuance and Operation of Prepaid Payment Instruments (PPis) in connection with certain product features of an open loop prepaid card (co-branded) previously issued by the bank. The bank had launched this product as pilot program from 13 September 2017 and later discontinued this product with effect from 14 March 2018. The result was announced after market hours on Friday, 3 May 2019.

Bharti Airtel rose 0.97%. With reference to news item captioned, "Airtel-Tata tele merger: TDSAT stays DoT call for Rs 9k crore guarantees," Bharti Airtel clarified after market hours on Friday, 3 May 2019, that it had duly intimated the exchanges about the transaction at the relevant junctures including upon the sanction of the subject schemes by National Company Law Tribunal, subject to the final approval of Department of Telecommunications (DoT). Further, the current order of TDSAT is subject to the final outcome and fulfilment of conditions, as is the case in all usual proceedings with reference to the final approval of DoT involving certain actions and compliances to be undertaken. Only after completion of the actions and submissions of the compliances, the final approval is issued.

On the macro front, the Indian service sector lost momentum in April, with rates of new business and output growth both cooling to seven-month lows, data released today showed. Falling from 52 in March to 51 at the start of the 2019 financial year, the seasonally adjusted Nikkei India Services Business Activity Index pointed to the weakest upturn in output since last September. Moreover, the headline figure dipped below the average seen over 2018 (51.6). Growth was linked to greater bookings, improved facilities and effective marketing, though curbed by competitive pressures and the elections.

On the political front, the fifth phase of the Lok Sabha polls 2019 is underway today, 6 May 2019, with 51 Lok Sabha constituencies from 7 different states going to vote. The 2019 Indian general election, which is scheduled to be held in seven phases, kicked off on 11 April 2019. It will conclude on 19 May 2019. The counting of votes will be conducted on 23 May 2019, and on the same day the results will be declared.

Overseas, shares in Europe and Asia were trading sharply lower on Monday, after President Donald Trump said the US would hike tariffs on goods from China.

Activity in China's service sector expanded at a slightly faster pace in April, a private gauge showed Monday. The Caixin China services purchasing managers' index rose to 54.5 in April from 54.4 in March, Caixin Media Co. and research firm Markit said.

Trading in US index futures indicated that the Dow could slump 448 points at the opening bell today. US President Donald Trump announced Sunday that tariffs on $200 billion of Chinese goods will increase next week to 25% from 10%. He also reportedly threatened that the U.S. will impose 25% tariffs on another $325 billion of Chinese goods. In response, China may reportedly withdraw from the next round of trade talks scheduled to begin Wednesday in Washington.

US stocks rose in a broad-based rally on Friday as stronger-than-expected job growth in April coupled with muted wage gains left investors upbeat about the outlook for the economy and interest rates. The Nasdaq registered a record high close, while the S&P 500 ended just shy of a record high finish.

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First Published: May 06 2019 | 1:31 PM IST

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