Local stocks dropped in early trade tracking mostly negative Asian stocks. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 196.69 points or 0.52% at 37,284.53. The Nifty 50 index was down 25.10 points or 0.52% at 11,060.30.
The S&P BSE Mid-Cap index was down 0.24%. The S&P BSE Small-Cap index was down 0.27%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 441 shares rose and 544 shares fell. A total of 51 shares were unchanged.
Overseas, most Asian stocks were trading lower Thursday after remarks by Fed Chair Jerome Powell dampened expectations for further cuts going forward. The Caixin/Markit factory Purchasing Managers' Index came in at 49.9 for July, from 49.4 in June.
US stocks closed sharply lower Wednesday with investors disappointed that the Federal Reserve cut interest rates in order to cushion the economy from the effects of President Trump's trade war with China, but refrained from suggesting further rate cuts were on the way.
The Federal Reserve on Wednesday trimmed its benchmark fed funds interest rate by a quarter-point, citing muted inflationary pressures and the implications of global developments. The vote was 8-2. The reduction in the fed funds rate - the first since 2008 - drops it to a range of 2% to 2.25%.
At his press conference, Fed chair Jerome Powell added that the Fed has moved to a somewhat more accommodative stance as part of a mid-cycle adjustment as trade tensions seem to be having a significant effect on the economy and the global manufacturing slowdown is a bigger factor than expected last year.
Overnight US and Chinese delegates, including Trade Secretary Robert Lighthizer and Treasury Secretary Steven Mnuchin, reportedly concluded the first round of talks since the G-20 gathering in May without any substantive developments on the tariff front. The United States and China will resume negotiations in Washington in early September.
Back home, Eicher Motor dropped 1.87% after consolidated net profit fell 21.59% to Rs 451.77 crore on 5.56% fall in total income to Rs 2523.17 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
ZEE Entertainment Enterprises (ZEEL) lost 3.71%. Essel Group announced that Invesco Oppenheimer Developing Markets Fund (hereafter referred to as The Fund) has agreed to make an additional investment in ZEE Entertainment Enterprises (ZEEL). The Fund has agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs 4224 crore. The announcement was made after market hours yesterday, 31 July 2019.
Wipro gained 2.58%. Wipro announced after market hours yesterday, 31 July 2019 that the company received final comments from the Securities and Exchange Board of India on 30 July 2019, with respect to the draft letter of offer filed by the company for buyback. Pursuant thereto and in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, the company will dispatch the letter of offer for the buyback to eligible shareholders appearing on the record date of 21 June 2019, on or before 6 August 2019.
UPL fell 1.18% after consolidated net profit fell 65.1% to Rs 178 crore on 86.63% rise in total income to Rs 7945 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Tata Global Beverages rose 1.57% after consolidated net profit rose 7.82% to Rs 125.33 crore on 5.27% rise in total income to Rs 1927.66 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Bosch fell 1%. Bosch said that with a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend all manufacturing operations at the company's plant in Bidadi for 3 days from 1 August to 3 August 2019. The announcement was made after market hours yesterday, 31 July 2019.
Container Corporation of India slipped 0.69% after consolidated net profit fell 5.72% to Rs 244.01 crore on 3.93% rise in total income to Rs 1722.79 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
Ashok Leyland rose 3%. The company's consolidated net profit fell 44.24% to Rs 247.21 crore on 8.53% fall in total income to Rs 6613.52 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 31 July 2019.
On the macro front, the combined Index of Eight Core Industries stood at 131.4 in June 2019, which was 0.2$ higher as compared to the index of June 2018. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). The data was released by government after market hours yesterday, 31 July 2019.
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