Auto, pharma stocks and index heavyweights Reliance Industries and HDFC Bank led losses for the two key benchmark indices. The barometer index, the S&P BSE Sensex, lost 342.83 points or 1.22% at 27,742.33, as per the provisional closing data. The Nifty 50 index lost 102.95 points or 1.19% at 8,575.30, as per the provisional closing data. The Sensex provisionally settled below the psychological 28,000 level after falling below that level in morning trade.
The Sensex and the Nifty 50 index, both, hit their lowest level in almost a week as these two key benchmark indices extended losses in late trade. The Sensex lost 348.54 points or 1.24% at the day's low of 27,736.62 in late trade, its lowest level since 4 August 2016. The barometer index rose 58.12 points or 0.21% at the day's high of 28,143.28 at onset of trading session. The Nifty lost 113.65 points or 1.31% at the day's low of 8,564.60 in late trade, its lowest level since 4 August 2016. The index rose 11.85 points or 0.14% at the day's high of 8,690.10 at onset of trading session.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,889 shares fell and 829 shares rose. A total of 137 shares were unchanged. The BSE Mid-Cap index was provisionally off 1.06%. The BSE Small-Cap index was provisionally off 1.18%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3305 crore, lower than turnover of Rs 3531.69 crore registered during the previous trading session.
In overseas stock markets, European stocks dropped and Asian stocks witnessed a mixed trend as investors assess the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices. US stocks eked out small gains yesterday, 9 August 2016, with the Nasdaq Composite index posting a fresh record close, as investors kept an eye on falling oil prices.
Index heavyweight Reliance Industries (RIL) lost 2.7% to Rs 1,002. The stock hit a high of Rs 1,034.50 and low of Rs 1,001.05 in intraday trade.
Index heavyweight and banking major HDFC Bank lost 1.94% to Rs 1,223.05. The stock hit a high of Rs 1,251 and low of Rs 1,223 in intraday trade.
Auto stocks declined. Ashok Leyland (down 1.79%), Maruti Suzuki India (down 2.08%), Eicher Motors (down 2.12%), Bajaj Auto (down 0.7%), Hero MotoCorp (down 2.56%), and TVS Motor Company (down 1.64%) declined.
Mahindra & Mahindra (M&M) declined 2.59%. The company's net profit rose 12.37% to Rs 955.21 crore on 14.33% rise in total income to Rs 12159.73 crore in Q1 June 2016 over Q1 June 2015. The result was announced during trading hours today, 10 August 2016.
The company's bottom line in Q1 June 2016 was boosted by an exceptional gain of Rs 91 crore from transfer of agri business to a wholly owned subsidiary company. Surge in non-operational income also aided the bottom line growth in Q1 June 2016. Other income jumped 31.89% to Rs 216.83 crore in Q1 June 2016 over Q1 June 2015.
The combined net profit of Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 16% to Rs 962 crore on 14% growth in gross revenue plus other income to Rs 11961 crore in Q1 June 2016 over Q1 June 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
In its outlook, M&M said that with a robust rainfall received so far and India Meteorological Department (IMD)'s prediction of normal rains for rest of the monsoon season, rural demand can be expected to gather further strength in the coming months. M&M added that the double digit growth in domestic sales of tractors witnessed in Q1 June 2016 suggests that a recovery in rural demand is now underway.
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