Stocks hovered in negative zone in early afternoon trade after cutting losses in mid-morning trade following a sudden slide in morning trade. At 12:24 IST, the barometer index, the S&P BSE Sensex, was down 169.12 points or 0.52% at 32,104.55. The Nifty index was down 51.75 points or 0.51% at 10,005.65. Today's slide was led by ITC, State Bank of India and Reliance Industries.
Intraday volatilty was high on the bourses. The Sensex was trading above the psychological 32,000 level after regaining that level in mid-morning trade. The barometer index had dropped below that level in morning trade. The Nifty was also trading above the psychological 10,000 level. The index had regained the psychological 10,000 level in mid-morning trade after falling below that level in morning trade.
Key benchmark indices were trading with modest gains in early trade led by gains turnaround Q1 results by steel giant Tata Steel and select auto stocks. A sudden sell-off gripped bourses in morning trade led by slide in index heavyweights ITC, HDFC Bank and Reliance Industries. High volatility continued in mid-morning trade as the key equity benchmarks cut losses after seeing sudden slide in morning trade.
The S&P BSE Mid-Cap index was off 0.65%. The S&P BSE Small-Cap index was off 0.76%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,778 shares declined and 590 shares rose. A total of 93 shares were unchanged.
Metal and mining stocks were in demand. Vedanta (up 3.93%), JSW Steel (up 1.11%), Steel Authority of India (Sail) (up 2.48%), National Aluminium Company (up 2.53%), Hindustan Zinc (up 0.93%), Jindal Steel & Power (up 0.94%), NMDC (up 0.99%), Hindustan Copper (up 2.99%) edged higher.
Tata Steel rose 3.63% after the company reported consolidated net profit of Rs 921.09 crore in Q1 June 2017 compared with net loss of Rs 3183.07 crore in Q1 June 2016. Tata Steel's consolidated net sales rose 18.9% to Rs 29386.76 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 7 August 2017.
The company's consolidated profit after tax (PAT) from continuing operations before exceptional items surged 311.14% to Rs 1550 crore in Q1 June 2017 over Q1 June 2016. Exceptional items during the quarter (Q1 June 2017) were Rs 617 crore mainly relating to provision for mining related litigation.
Koushik Chatterjee, Group Executive Director (Finance and Corporate), said that Tata Steel Europe strategic portfolio restructuring of focusing on strip business is now completed with the sale of 42-inch and 84-inch pipe mills in Hartlepool, UK to Liberty House Group. Tata Steel is in advanced discussions with the BSPS Trustee, the Pension Regulator and the Pension Protection Fund in relation to RAA, and is hopeful of reaching final agreement shortly, Chatterjee said.
Hindalco Industries rose 4.83% after its overseas arm Novelis reported strong Q1 June 2017 results yesterday, 7 August 2017. On a consolidated basis, Novelis' net income surged 320.83% to $101 million on 16.25% increase in net sales to $2669 million in Q1 June 2017 over Q1 June 2016.
The increase in net sales was driven by a 4% increase in total shipments of flat rolled products to 785 kilotonnes, including a 16% increase in shipments of higher conversion premium automotive products, as well as higher average aluminum prices. The year-over-year increase in net income was driven primarily by higher EBITDA (earnings before interest, taxes, depreciation and amortization) and lower interest expense following debt refinancing actions in fiscal 2017.
Phillips Carbon Black fell 2.4% to Rs 645.90, with the stock sliding on profit booking after recent rally. Shares of Phillips Carbon Black had rallied 13.69% in the preceding seven trading sessions to settle at Rs 661.75 yesterday, 7 August 2017, from its close of Rs 582.05 on 27 July 2017.
Sintex Plastics Technology was down 2.361% at Rs 127 over its listing price of Rs 130 per share. The equity shares of Sintex Plastics Technology were listed on the exchange in the list of T group (Trade-for-Trade) of securities. The scrip will trade in this segment for 10 trading days.
In September 2016, the board of directors of Sintex Industries approved the composite scheme of arrangement for the demerger of custom moulding business and prefab business from Sintex Industries to Sintex-BAPL and Sintex Infra Projects, respectively. Both demerged companies are wholly-owned subsidiary of Sintex Plastics Technology. With this demerger plan, Sintex intends to streamline various businesses developed by the Group.
Upon demerger, shareholders of Sintex Industries got one equity share from Sintex Plastics Technology for one share held in company. The record date for the scheme of demerger was 26 May 2017.
Overseas, Asian stocks took a breather as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth. China's export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from an 11.3% rise in June, official data showed on Tuesday. Imports rose 11%, the slowest growth since December and down from a 17.2% rise in the previous month. That left the country with a trade surplus of $46.74 billion for the month, the highest since January, above June's $42.77 billion.
US stocks closed higher yesterday, 7 August 2017 with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine with consumer staples and technology shares leading on the day. The Dow Jones Industrial Average rose 25.61 points, or 0.1%, to a new closing record of 22,118.42. The S&P 500 rose 4.08 points to 2,480.9, a rise of 0.2%. The Nasdaq Composite Index climbed 32.21 points, or 0.5%, to 6,383.77.
US Fed speaker St. Louis Fed President James Bullard said the level of short-term interest rates was fine, and that the current level of the policy rate is likely to remain appropriate over the near term.
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