Key benchmarks corrected as profit booking set in after a recent rally. The barometer index, the S&P BSE Sensex, fell 249.52 points or 0.69% to 36,033.73, as per the provisional closing data. The Nifty 50 index fell 80.75 points or 0.73% to 11,049.65, as per the provisional closing data.
The Sensex settled a tad above psychological 36,000 mark after falling below that level in late trade. Broader market depicted weakness. Negative global cues also spoiled investors sentiment. Investors were cautious ahead of Union Budget 2018-2019 on Thursday, 1 February 2018.
Key indices opened lower and extended losses to hit fresh intraday low in morning trade. After some range bound trading in mid-morning trade, key indices once again resumed their downtrend in afternoon trade and hit fresh intraday low in late trade.
The Sensex rose 8.57 points, or 0.02% at the day's high of 36,291.82 in early trade. The index fell 289.84 points, or 0.80% at the day's low of 35,993.41 in late trade, its lowest level since 25 January 2018. The Nifty fell 9.30 points, or 0.08% at the day's high of 11,121.10 in early trade. The index fell 96.50 points, or 0.87% at the day's low of 11,033.90 in late trade, its lowest level since 25 January 2018.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 0.67%. The BSE Small-Cap index provisionally fell 1.34%. Both these indices underperformed the Sensex.
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The broad market depicted weakness. There were over two losers against every gainer on BSE. 2,036 shares fell and 812 shares rose. A total of 144 shares were unchanged.
The total turnover on BSE amounted to Rs 5274.29 crore, lower than turnover of Rs 5410.58 crore registered during the previous trading session.
Most IT shares declined. Oracle Financial Services Software (down 1.96%), Wipro (down 1.43%), TCS (down 1.27%), HCL Technologies (down 0.97%), Infosys (down 0.93%), MphasiS (down 0.17%) and Persistent Systems (down 0.04%), edged lower. MindTree (up 0.09%) and Hexaware Technologies (up 1.76%), edged higher.
Tech Mahindra was down 0.69% after consolidated net profit rose 12.8% to Rs 943 crore on 2.2% rise in revenue to Rs 7776 crore in Q3 December 2017 over Q2 September 2017. Earnings before interest, tax and depreciation (EBITDA) margin rose 1.8% to 16.3% in Q3 December 2017 compared with Q2 September 2017. The announcement was made after market hours yesterday, 29 January 2018.
Vineet Nayyar, Vice Chairman, Tech Mahindra, said that the focus on digital transformation, continuous reskilling of workforce to meet the future demands of market space is showing encouraging results. The quarterly results also demonstrate company's focus on execution, which is key in an otherwise unpredictable macro business environment.
C P Gurnani, CEO & MD, Tech Mahindra, said that the company has continued to clock steady growth in the quarter across revenue, profits and new business. The company's commitment to 'DAVID' strategy (digitization, automation, verticalization, innovation, disruption) has yielded marquee deals in the digital space.
Indian Oil Corporation surged 4.36% after net profit jumped 97.33% to Rs 7883.22 crore on 13.55% growth in total income to Rs 132218.54 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 30 January 2018.
IOCL's board declared interim dividend of Rs 19 per share for FY 2018. The record date for payment of interim dividend is 9 February 2018. The board has recommended issue of bonus shares in the ratio of 1:1 subject to the approval of the shareholders.
Biocon rose 2.40% after the company said that European Medicines Agency's Committee for Medicinal Products for Human Use has issued a positive opinion recommending approval of Semglee, insulin glargine. The announcement was made after market hours yesterday, 29 January 2018.
Mylan N.V. and Biocon announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has issued a positive opinion recommending approval of Semglee, insulin glargine, a long-acting insulin analog used in the treatment of diabetes mellitus in adults, adolescents and children aged 2 years and above.
The CHMP positive opinion will be considered by the European Commission. The European Commission decision on the approval is expected in April. Biocon and Mylan are exclusive partners on a broad portfolio of biosimilars and insulin analogs. Glargine is one of the three insulin analogs being co-developed by Mylan and Biocon for the global marketplace.
Mylan has exclusive commercialization rights for insulin glargine in the US, Canada, Australia, New Zealand, the European Union and European Free Trade Association countries. Biocon has exclusive rights for Japan and a few emerging markets, and co-exclusive commercialization rights with Mylan in the rest of the world. Mylan is a global pharmaceutical company committed to setting new standards in healthcare.
Reliance Communications surged 11.01% after the company reported consolidated net loss of Rs 130 crore in Q3 December 2017 compared with net loss of Rs 531 crore in Q3 December 2016. Reliance Communications total income fell 30.74% to Rs 1176 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 29 January 2018.
RCom's planned exit from consumer business results in sharp drop in net quarterly loss. Consumer business comprised wireless, direct to home and public call offices (PCO).
Anil D Ambani, Chairman, Reliance Communications said that the company's planned exit from the consumer business has achieved more than the desired results. RCom expects to deliver even better financial performance in the coming quarters, he added.
The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.
The Budget Session of the parliament began yesterday, 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.
The Economic Survey 2017-18 was tabled in Parliament yesterday, 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.
Overseas, European stocks were trading lower as investors monitored corporate earnings.
Asian stocks fell across the board, tracking declines seen on Wall Street in the previous session. US stocks declined as the yield for benchmark 10-year Treasury note hit the highest level since April 2014 above 2.7%, raising concerns that rising borrowing costs could upend a relentless uptrend for equities. The Dow closed down about 0.7%, the S&P 500 index closed off 0.7%, at 2,853, registering its worst daily fall since August, while the Nasdaq Composite Index closed down 0.5%.
The Federal Open Market Committee (FOMC) of the US Federal Reserve holds its next two-day monetary policy meet on Tuesday, 30 January 2018 and Wednesday, 31 January 2018. The Federal Reserve will announce its interest rates decision on Wednesday. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.
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