The stock market extended Friday's sharp losses amid global sell-off and as investor sentiment got hit after Finance Minister Arun Jaitley had announced bringing the long term capital gains (LTCG) tax in Union Budget 2018. The barometer index, the S&P BSE Sensex, fell 266.78 points or 0.76% at 34,799.97, as per the provisional closing data. The Nifty 50 index declined 78.40 points or 0.73% at 10,682.20, as per the provisional closing data. The Sensex settled below the 35,000 level after slipping below that level in intraday trade.
Capital goods stocks led losses among the BSE sectoral indices. Index heavyweights HDFC and Hindustan Unilever fell. Another index heavyweight ITC bucked the weak market trend.
Key indices opened on a weaker note tracking slide in Asian markets and sharp decline in US stocks. Later, indices languished in negative terrain in a narrow range till afternoon trade. Indices extended losses to trade near intraday lows in mid-afternoon trade before trimming some losses towards the close of the session.
The Sensex tumbled 545.95 points, or 1.55%, at the day's low of 34,520.80 in early day. The index fell 192.58 points, or 0.54%, at the day's high of 34,874.17 in morning trade. The Nifty tanked 173.80 points, or 1.61%, at the day's low of 10,586.80 in early trade. The index declined 57.85 points, or 0.53%, at the day's high of 10,702.75 in morning trade.
Global stocks declined after a stronger-than-expected US jobs report sent bond yields surging. Also, the trading of US index futures showed a weak opening of US stocks today, 5 February 2018.
Back to market, among the secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.08%. The S&P BSE Small-Cap index provisionally fell 0.03%. Both these indices outperformed the Sensex.
Investor sentiment remained negative after Finance Minister Arun Jaitley announced long term capital gains (LTCG) tax in Union Budget 2018. The Budget proposed to tax LTCG on equities exceeding Rs 1 lakh at 10%.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,674 shares fell and 1,131 shares rose. A total of 171 shares were unchanged.
The total turnover on BSE amounted to Rs 4747.97 crore, compared with the turnover of Rs 5944.92 crore registered during the previous trading session.
Capital goods stocks declined. L&T (down 3.49%), ABB India (down 3.1%), Siemens (down 1.7%), Thermax (down 2.18%) and BEML (down 1.68%) fell. Bhel (up 1.82%) edged higher.
Housing finance major HDFC lost 3.92% at Rs 1,828.60.
FMCG major Hindustan Unilever fell 0.93% at Rs 1,359.95.
Cigarette major ITC advanced 1.34% at Rs 279.
Index heavyweight Reliance Industries (RIL) rose 0.32% at Rs 908.60. With respect to media news titled "RIL emerges sole contender to acquire stake in JBF Industries", RIL said that it is unable to comment on media speculation and rumours and it would also be inappropriate on its part to do so. RIL added that it evaluates various opportunities on an ongoing basis. The announcement was made during market hours today, 5 February 2018.
Bosch advanced 2.87% at Rs 19,900 after net profit rose 28.79% to Rs 281.01 crore on 4.85% growth in total income to Rs 3174.18 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 5 February 2018.
On the macro front, Markit Economics data of a monthly survey on the performance of India's services sector in January 2018 showed that the Nikkei India Services PMI increased to 51.7 in January from 50.9 in December 2017.
Overseas, European and Asian stocks declined following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services purchasing managers' index (PMI) increased to 51.9 in January from 51.2 in December 2017.
China's Caixin services PMI rose to 54.7 in January from December's 53.9, expanding at its fastest pace in almost six years, data released today, 5 February 2018 showed. The 50-mark separates growth from contraction on a monthly basis.
Trading of US index futures showed that Dow could slip 88 points at the opening bell today, 5 February 2018. US stocks fell sharply on Friday, 2 February 2018 on surging bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
