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Shares dive as US-China trade fears grow

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Capital Market
Last Updated : May 08 2019 | 5:04 PM IST

Key domestic benchmarks extended losses for sixth straight trading session. Sentiment was weak across global stock markets amid worries of an unsuccessful US-China trade negotiation. The Sensex ended below 38,000 mark while the Nifty closed below 11,400 level.

The Sensex fell 487.50 points or 1.27% to settle at 37,789.13. The index fell 28.06 points, or 0.07% at the day's high of 38,248.57. The index fell 533.56 points, or 1.39% at the day's low of 37,743.07.

The Nifty 50 index fell 138.45 points or 1.20% to settle at 11,359.45. The index fell 18.80 points, or 0.16% at the day's high of 11,479.10. The index fell 150.95 points, or 1.31% at the day's low of 11,346.95.

Indices edged lower in early trade on negative Asian stocks. Indices extended fall in morning trade. Stocks gyrated in negative zone in mid-morning trade. Indices extended losses in afternoon trade. Stocks cut losses in mid-afternoon trade. Heavy selling dragged the key indices to day's low in late trade.

The S&P BSE Mid-Cap index fell 0.96%. The S&P BSE Small-Cap index fell 1.21%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 671 shares rose and 1816 shares fell. A total of 149 shares were unchanged.

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Among the sectoral indices on BSE, the S&P BSE Energy index (down 2.51%), the S&P BSE Realty index (down 2.13%) and the S&P BSE Power index (down 1.62%), underperformed the Sensex. The S&P BSE IT index (down 0.44%), the S&P BSE Consumer Durables index (down 0.62%) and the S&P BSE FMCG index (down 0.72%), outperformed the Sensex.

Reliance Industries (down 3.35%), Bajaj Finance (down 3.22%), Tata Motors (down 2.8%), Bajaj Auto (down 2.55%), State Bank of India (down 2.53%), Yes Bank (down 2.31%), HDFC (down 1.77%) and HDFC Bank (down 0.81%), were the major Sensex losers.

Vedanta fell 2.51% to Rs 159.30 after consolidated net profit fell 46% to Rs 2,615 crore on 15% decline in net sales to Rs 23,092 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 7 May 2019.

Revenue in Q4 March 2019 was lower by 1% sequentially, primarily due to lower commodity prices, rupee appreciation and lower volume at Aluminium and Zinc India business, partially offset by higher sales volume at ESL, Zinc International and Iron ore Karnataka.

EBITDA in Q4 March 2019 was at Rs 6,330 crore, 6% higher quarter-on-quarter (q-o-q), primarily due to improved cost of production at Aluminium, higher sales at Iron Ore Karnataka, ESL and Zinc International, partially offset by lower commodity prices, rupee appreciation, lower volumes at Zinc India and write back of liability pursuant to settlement agreement with a contractor at Balco in Q3 December 2018.

Shares of Neogen Chemicals settled at Rs 263.55 on BSE, a premium of 22.58% over the initial public offer price of Rs 215. The stock debuted at Rs 251, a premium of 16.74% to the initial public offer (IPO) price. The stock hit a high of Rs 263.55 and low of Rs 250.10. On BSE, 2.88 lakh shares were traded on the counter.

CG Power and Industrial Solutions soared 7.81% to Rs 39.35 after Yes Bank said it acquired 8,00,50,000 equity shares of CG Power and Industrial Solutions (CG Power) having nominal value of Rs 2 per share, constituting 12.79% of the paid-up share capital as at 31 March 2019. The shares have been acquired on invocation of pledged shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Oyster Buildwell ('borrower'), which is a group company of Avantha Group. Proceeds from sale of shares be utilized to reduce the loans secured by such shares.

UPL rose 1.20% to Rs 962.70. UPL said that its board will meet on 17 May 2019, to consider the financial results of the company for the year ended 31 March 2019. The board will also consider dividend on equity shares and issue of bonus shares. The announcement was made during trading hours today, 8 May 2019.

Shares of BSE fell 3.63% to Rs 614 on NSE after consolidated net profit fell 16.46% to Rs 51.86 crore on 6.79% decline in total income to Rs 182.08 crore in Q4 March 2019 over Q4 March 2018. The result was announced after market hours yesterday, 7 May 2019.

BSE said it proposes to buyback 67,64,705 equity shares at Rs 680 each through tender offer route amounting to Rs 460 crore. The buyback offer size represents 24.73% of the aggregate of the total paid up capital and free reserves of the company based on the standalone audited financial statements of the company as at 31 March 2019.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.62, compared with its close of 69.43 during the previous trading session.

In the global commodities markets, Brent for July 2019 settlement was down 31 cents at $69.57 a barrel. The contract fell $1.36 a barrel or 1.91% to settle at $69.88 a barrel during the previous trading session.

Overseas, European and Asian equities tracked Wall Street's slide on Wednesday as the latest developments in the US-China trade conflict fanned fresh fears about global growth.

US stocks dropped sharply Tuesday, building on the previous day's decline after US officials confirmed that tariffs on imported goods from China could be raised by the end of the week.

US Trade Representative Robert Lighthizer reportedly said Monday that the Trump administration will increase tariffs on Chinese goods early Friday from 10% to 25%. Chinese Vice Premier Liu He will travel to Washington for a two-day meet beginning Thursday in a last ditch attempt to avoid a sharp increase in tariff on $200 billion worth of Chinese goods.

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First Published: May 08 2019 | 4:55 PM IST

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