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Sensex reclaims 34,000 mark

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Capital Market
Last Updated : Feb 06 2018 | 2:31 PM IST

The stock market sharply trimmed intraday losses in mid-afternoon trade as trading in the US index futures indicated a positive opening for the US stocks later in global day today, 6 February 2018. At 14:15 IST, the barometer index, the S&P BSE Sensex was down 529.16 points or 1.52% at 34,228. The Nifty 50 index slumped 155.80 points or 1.46% at 10,510.75. The Sensex reclaimed the 34,000 level after falling below that level in intraday trade. However, all the 19 sectoral indices on BSE languished in red.

Key indices opened sharply lower on weak global cues and languished in negative terrain with sharp losses till afternoon trade. Indices trimmed intraday losses in mid-afternoon trade. Global equities tumbled as interest rates in US headed higher amid concerns of returning inflation. The stronger-than-expected US nonfarm jobs report for the month of January released last Friday sent interest rates on sovereign debt jumping.

Among secondary indices, the S&P BSE Mid-Cap index tumbled 1.74%. The S&P BSE Small-Cap index fell 2.29%. Both these indices underperformed the Sensex.

Overseas, European stocks opened sharply lower and Asian stocks tanked following a sharp sell-off on Wall Street. US stocks tumbled yesterday, 5 February 2018 as interest rates headed higher amid concerns of returning inflation.

Back home, the broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,297 shares declined and 400 shares advanced. A total of 123 shares were unchanged.

FMCG stocks declined. Godrej Consumer Products (down 3.02%), Hindustan Unilever (down 2.63%), Colgate-Palmolive (India) (down 2.29%), Procter & Gamble Hygiene and Health Care (down 1.82%), Britannia Industries (down 1.51%), Nestle India (down 1.52%) and Marico (down 0.71%) fell. Dabur India (up 0.16%) edged higher.

Aviation stocks fell. SpiceJet (down 2.66%) and Jet Airways (India) (down 1.25%) edged lower. InterGlobe Aviation (up 0.59%) gained.

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Ador Welding tanked 3.78% after net profit fell 10.6% to Rs 3.70 crore on 1.1% rise in net sales to Rs 103.74 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 5 February 2018.

On the macro front, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will meet today, 6 February and tomorrow, 7 February 2018 for the sixth bi-monthly monetary policy statement for 2017-18. The resolution of the MPC will be announced tomorrow, 7 February 2018. The central bank is likely to keep its policy rate on hold, but could toughen its warnings against inflation. The MPC is expected to tilt towards a hawkish tone from its neutral tone following higher fiscal targets, oil price increases and higher minimum support prices (MSP) for crops.

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First Published: Feb 06 2018 | 2:18 PM IST

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