The key indices extended losses and hit fresh intraday low in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 310.61 points or 0.83% at 37,211.01. The Nifty 50 index was down 90.25 points or 0.80% at 11,255.95. Domestic shares mirrored losses in global stocks as US-China trade worries resurfaced.
After trading lower in early trade, the market slipped further and hit fresh intraday low in morning trade. Indices trimmed losses in mid-morning trade and turned range bound in early afternoon trade. Indices hit fresh intraday low in mid-afternoon trade as selling pressure resumed. The Sensex rose 8.07 points, or 0.02% at the day's high of 37,529.69 at the onset of trading session. The index fell 334.11 points, or 0.89% at the day's low of 37,187.51 in mid-afternoon trade. The Nifty fell 17.30 points, or 0.15% at the day's high of 11,328.90 at the onset of trading session. The index fell 94.50 points, or 0.83% at the day's low of 11,251.70 in mid-afternoon trade.
Broader market bucked weak market trend. Among secondary barometers, the BSE Mid-Cap index was up 0.38%. The BSE Small-Cap index was up 0.23%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,295 shares rose and 1,257 shares fell. A total of 146 shares were unchanged.
Auto stocks were mixed. Ashok Leyland (up 1.68%), TVS Motor Company (up 1.01%), Bajaj Auto (up 0.33%) and Escorts (up 0.15%), edged higher. Tata Motors (down 0.7%), Eicher Motors (down 0.95%), Mahindra & Mahindra (down 1.27%) and Maruti Suzuki India (down 1.5%), edged lower.
Hero MotoCorp rose 0.11% after the company declared modest growth in monthly sales in July 2018 after market hours yesterday, 1 August 2018. Hero MotoCorp reported 9% rise in sales to 6.79 lakh units of two-wheeler in the month of July 2018 from July 2017 due to continued strong demand for range of popular motorcycles and scooters. The company has lined up multiple new product launches ahead of the festive season, including the Xtreme 200R motorcycle and the 125cc scooters.
Pawan Munjal, Chairman, MD, and CEO, Hero MotoCorp, said the company is confident of carrying the growth trajectory forward and expect to grow at double-digit in the upcoming festive season. The normal monsoon in most parts of the country, and the consequent agricultural harvest will keep the sentiments buoyant and help maintain the momentum. Economic growth, rural investments and initiatives such as MSP, MNREGA etc. augur well for the future growth of the industry.
Power generation stocks were mixed. Torrent Power (down 3.45%), Adani Power (down 2.73%), Jaiprakash Power Ventures (down 1.89%), Tata Power (down 1.03%), CESC (down 0.69%), NTPC (down 0.1%) and JSW Energy (down 0.08%), edged lower. NHPC (up 0.85%), GMR Infrastructure (up 1.39%), Reliance Power (up 1.55%) and Reliance Infrastructure (up 2.73%), edged higher.
State-run Power Grid Corporation of India was up 1.85%.
State-run Coal India was up 1.48%. Coal India announced during trading hours today, 2 August 2018, that its production increased by 10.6% year-on-year (yoy) to 40.56 million tonne in the month of July 2018. This brings the total production for the period of April-July 2018 to 177.43 million tonne, an increase of 14.1% yoy. Offtake also rose 8.9% yoy in July 2018 to reach 48.25 million tonne. The offtake for the period of April-July 2018 stood at 201.68 million tonne, an increase of 11% yoy.
Overseas, European markets declined ahead of a Bank of England meeting which is expected to deliver a rate hike despite uncertainty over Brexit. Asian stocks tumbled on renewed US-China trade concerns. US stocks closed mostly lower Wednesday after the Federal Reserve left interest rates unchanged but signaled another imminent rate increase. Fresh worries over US-China trade friction dampened sentiment although positive results from Apple buoyed the tech sector and helped the Nasdaq buck the weak trend.
The Trump administration announced it is looking at the possibility of slapping a 25% tariff on $200 billion worth of imported Chinese goods from the initial 10% announced earlier.
Meanwhile, the US Federal Reserve concluded a two-day meeting on monetary policy and left its main interest rate unchanged at 1.75% to 2%, as widely expected, and indicated that it is likely to raise rates next month as the economy remains strong.
On the US data front, the latest data on private-sector employment showed 219,000 jobs added in July. Separately, the Markit manufacturing purchasing managers index came in at 55.3 in July. The Institute for Supply Management's July manufacturing index was 58.1%.
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