Key benchmark indices suffered steep losses in volatile trade weighed by weakness in ITC, Reliance Industries and bank stocks. The barometer index, the S&P BSE Sensex, lost 259.48 points or 0.8% at 32,014.19, as per the provisional closing data. The Nifty index lost 78.85 points or 0.78% at 9,978.55, as per the provisional closing data. Negative global stocks also impacted sentiment on the domestic bourses.
Market sentiment was impacted after market regulator Securities and Exchange Board of India (Sebi) yesterday, 7 August 2017 imposed trading restrictions on 162 listed entities identified as shell companies.
Intraday volatility was high on the bourses. The Sensex provisionally settled below the psychological 32,000 level after moving above and below that level in intraday trade. The Nifty also provisionally settled below the psychological 10,000 level after moving above and below that level in intraday trade.
The Sensex gained 81.10 points or 0.25% at the day's high of 32,354.77 at onset of the day's trading session. The index lost 358.47 points or 1.11% at the day's low of 31,915.20 in morning trade, its lowest level since 21 July 2017. The Nifty gained 26.40 points or 0.26% at the day's high of 10,083.80, at onset of the day's trading session. The index lost 110.40 points or 1.1% at the day's low of 9,947 in morning trade, its lowest level since 28 July 2017.
Key indices traded with small gains in early trade led by 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. Stocks cut losses in mid-morning trade and languished in the red later during the session. Key indices continued to languish in the red threafter for rest of the day.
The S&P BSE Mid-Cap index provisionally fell 1.2%. The S&P BSE Small-Cap index provisionally fell 1.3%. 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. 1,984 shares declined and 600 shares rose. A total of 123 shares were unchanged.
The total turnover on BSE amounted to Rs 7313.30 crore, higher than the turnover of Rs 3895.41 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC lost 2.07% to Rs 274.20. The stock hit a high of Rs 281.55 and low of Rs 273.30 in intraday trade.
Pharma stocks declined. Dr Reddy's Laboratories (down 5.34%), Glenmark Pharmaceuticals (down 2.48%), Lupin (down 1.02%), Sun Pharmaceutical Industries (down 1.27%), Alkem Laboratories (down 1.84%), GlaxoSmithKline Pharmaceuticals (down 0.46%), Cadila Healthcare (down 0.75%) and Wockhardt (down 1.02%) edged lower. Cipla (up 2.32%) and Aurobindo Pharma (up 0.32%) rose.
Merck fell 3.09% after net profit fell 11.6% to Rs 20.13 crore on 3.7% decrease in net sales to Rs 251.61 crore in Q2 June 2017 over Q2 June 2016. The result was announced after market hours yesterday, 7 August 2017.
Overseas, European stocks were trading lower as miners came under pressure while results weighed on Pandora, IHG and Standard Life. Germany's trade surplus widened slightly in June, though both imports and exports declined. According to data adjusted for seasonal and calendar effects, exports from Germany declined by 2.8% on the month in June. The adjusted trade surplus stood at EUR21.2 billion, just above the EUR20.3 billion recorded in the previous month.
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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