Key benchmark indices tumbled in early trade, tracking negative leads from Asian markets. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 217.84 points or 0.61% at 35,688.82. The Nifty 50 index was down 67.85 points or 0.62% at 10,949.05. The Sensex was trading below its psychological 36,000 mark after opening below that level. The Nifty was trading below its psychological 11,000 mark after opening below that level.
Enthusiasm among investors dipped after the government reintroduced long-term capital gains (LTCG) tax. Investors will have to pay 10% tax on profits exceeding Rs 1 lakh made from sale of shares or equity mutual fund units held for over one year. However, all gains up to 31 January 2018 will be grandfathered. Finance minister also proposed to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
Among secondary barometers,the BSE Mid-Cap index was down 1.14%. The BSE Small-Cap index was down 1.30%. Both these indices underperformed the Sensex.
The broad market depicted weakness. There were almost five losers against every gainer on BSE. 1,300 shares fell and 261 shares rose. A total of 32 shares were unchanged.
Overseas, most Asian shares were trading lower after the Wall Street closed mixed. US shares ended mostly lower on Thursday as fears of a pick up in inflation and rising bond yields spoiled sentiment.
In US, the number of people who applied for unemployment benefits in late January fell by 1,000 to 230,000. Further, the productivity of American firms and workers fell at a 0.1% annual pace in the fourth quarter. Separately, the Institute for Supply Management said its manufacturing index in January slipped to 59.1% from 59.3% in December.
Closer home, ICICI Bank was down 1.26%. The bank said that the committee of executive directors constituted by the board of the bank is scheduled to have a meeting in the week of 5-9 February 2018 to consider, domestic fund raising by way of issuance of senior unsecured long term bonds/ Basel III compliant unsecured subordinated perpetual additional tier 1 bonds in single/multiple tranches on private placement basis. The announcement was made after market hours yesterday, 1 February 2018.
Punjab National Bank was down 1.83%. The bank said that meeting of board of directors of the bank is scheduled to be held on 6 February 2018 for considering capital infusion by Government of India up to Rs 5473 crore by way of preferential issue of equity share. The announcement was made after market hours yesterday, 1 February 2018.
Power Grid Corporation of India was down 1.41%. The company's net profit rose 5.7% to Rs 2040.83 crore on 13.2% rise in net sales to Rs 7506.95 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 1 February 2018.
Grasim Industries was down 1.01%. The company said that with effect from 1 February 2018, the right to manage and operate the VSF business of Century Textiles and Industries has vested with the company. The announcement was made after market hours yesterday, 1 February 2018.
IL&FS Transportation Networks was down 1.58%. The company said that the Committee of Directors approved the allotment of, 1,000 secured rated, listed, redeemable, non-convertible debentures of the face value of Rs 10 lakh aggregating to Rs 100 crore on a private placement basis. The announcement was made after market hours yesterday, 1 February 2018.
TVS Motor Company was down 1.88%. The company registered a sales growth of 31% to 271,801 units in January 2018 over January 2017. The announcement was made after market hours yesterday, 1 February 2018.
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