The market continued trading with modest losses in the afternoon trade. At 13:30 IST, the barometer index, the S&P BSE Sensex, fell 440.19 points or 1.19% at 36,678.03. The Nifty 50 index also fell 134.70 points or 1.22% at 10,862.65. Tensions in Jammu and Kashmir (J&K), coupled with weak global cues spoiled investors sentiment.
The S&P BSE Mid-Cap index was down 1.08%. The S&P BSE Small-Cap index also fell 1.47%.
The market breadth was weak. On the BSE, 600 shares rose and 1,611 shares fell. A total of 124 shares were unchanged.
The Union Government on Monday moved a resolution in Rajya Sabha to scrap Article 370 of the Constitution that gives special status to Jammu and Kashmir. President Ram Nath Kovind issued a notification- The Constitution (Application to Jammu and Kashmir) Order, 2019 that will come into force immediately. The order is set to supersede the Constitution (Application to Jammu and Kashmir) Order, 1954 as amended from time to time.
The government also moved a bill proposing division of the state of Jammu and Kashmir into two union territories- Jammu and Kashmir division and Ladakh. Amit Shah in Rajya Sabha said the union territory in Ladakh will have no legislature while the union territory of Jammu and Kashmir will have a legislature like Delhi and Puducherry.
At least 8,000 paramilitary troops have been airlifted to J&K from different parts of the country today. The Army and the Air Force have been put on high alert, the media reported.
Jammu & Kashmir Bank fell 4.12%. The bank's net profit declined 58.4% to Rs 21.87 crore on 18.9% rise in total income to Rs 2256.25 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 3 August 2019.
Coal India (up 2.54%), TCS (up 1.71%), Bajaj Auto (up 1.32%), Tech Mahindra (up 1.22%) and Bharti Airtel (up 0.99%) advanced.
Power Grid Corporation of India (down 6.15%), Yes Bank (down 4.98%), Tata Motors (down 3.98%), Zee Entertainment Enterprises (down 3.34%) and State Bank of India (down 2.69%) declined.
Index major ITC fell 1.74%. The company's consolidated net profit rose 12.79% to Rs 3355.01 crore on 8.12% rise in total income to Rs 13305.19 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 2 August 2019.
On consolidated basis, ITC's consolidated net profit rose 12.8% to Rs 3355.01 crore on 6.7% rise in net sales to Rs 12532.31 in Q1 June 2019 over Q1 June 2018.
The company reported that it has posted a steady performance during the quarter amid sluggish demand conditions. ITC's flagship cigarette business grew 6% to Rs 5433.4 crore in Q1 June 2019 over Q1 June 2018.
The company's non-cigarette business which comprises of hotels rose 15% driven by robust performance of new properties, amidst relatively soft demand conditions. While segment EBITDA grew 18%, additional depreciation pertaining to new properties weighed on segment results.
Paperboards, paper & packaging segment revenue rose 13% in Q1 June 2019, driven by strong growth in value added paperboards segment and product mix enrichment. The company reported that packaging & printing business was impacted by slowdown in the FMCG industry and exports.
Index heavyweight Reliance Industries (RIL) slipped 3.10%. The company said that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings (RIIHL), has entered into an agreement for acquisition of equity shares of Shopsense Retail Technologies for a cash consideration not exceeding Rs 295.25 crore. RIIHL has an option to further invest an amount of up to Rs 100 crore which is likely to be completed by December 2021. The total investment will translate into approximately 87.6% of equity share capital in Fynd on a fully diluted and converted basis. The announcement was made on Saturday, 3 August 2019.
A foreign brokerage has reportedly downgraded the stock to 'Underperform' from 'Neutral' and cut price target to Rs 995 from Rs 1,350.
FMCG major Nestle India advanced 1.86% after net profit rose 10.84% to Rs 437.84 crore on 11.41% rise in total income to Rs 3073.44 crore in Q2 June 2019 over Q2 June 2018. The result was announced after market hours on Friday, 2 August 2019.
Bata India jumped 3.56%. The company's consolidated net profit rose 22.52% to Rs 100.97 crore on 11.08% rise in total income to Rs 899.62 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 2 August 2019.
The growth is attributed to successful execution of Sweeping Angela Off Her Feet strategy. This involves innovative campaigns which have helped to sustain profitable growth across categories and mindful upgradation of stores to provide world class shopping experience to our loyal customers while keeping costs under control. Retail channel continued to grow at a steady pace and supported by double- digit growth in e-commerce & non-retail channel as well.
Deepak Nitrite rose 0.58% after consolidated net profit rose 601.55% to Rs 131.61 crore on 128.64% rise in total income to Rs 1062.57 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 2 August 2019.
Lupin shed 1.20%. The pharma major announced the receipt of the Establishment Inspection Report (EIR) from the USFDA for its Aurangabad facility. The facility was inspected by the U.S. FDA between May 6, 2019 and May 15, 2019. Lupin's Aurangabad facility is involved in the manufacture of Oral Solid Dosage, Oral Liquid and Powder for Oral Suspension products for the US Market, WHO/Global Institution markets and the India market. The announcement was made during market hours today, 5 August 2019.
Tata Communications gained 1.26%. On a consolidated basis, the company reported a net profit of Rs 76.61 crore in Q1 June 2019 compared with a net loss of Rs 58.49 crore Q1 June 2018. The income from operations rose 5.7% to Rs 4168.62 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 2 August 2019.
V-Mart Retail slumped 5.43%. The company's net profit fell 29.2% to Rs 17.60 crore on 25.4% rise in net sales to Rs 453.05 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 2 August 2019.
Same store sales growth (SSSG) stood at 5.2% for the quarter. The company registered the highest revenue growth in Uttar Pradesh, its largest state in terms of retail store presence. The key growth driver for this quarter was the holy month of Ramadan, leading to Eid, a festival widely celebrated by millions of families in geographies where V-Mart has a substantial presence.
The company's earnings before interest tax depreciation and amortization (EBITDA) increased 33.79% to Rs 57.8 crore in Q1 June 2019 from 43.2 crore in Q1 June 2018.
Berger Paints India (up 1.43%) and Bombay Dyeing & Manufacturing Corporation (up 6.50%) will announce their Q1 June 2019 results today.
Overseas, shares in Europe and Asia were trading lower on Monday as a sharp escalation in the Sino-US trade war kept financial markets on edge.
US stocks ended at their lowest levels in a month on Friday as investors worried that President Trump's escalation of the trade war with China would impact economic growth. Stocks extended losses after China vowed to retaliate against President Trump's decision on Thursday to impose 10% tariffs on the remaining $300 million of imports from China not already subject to levies.
On the US data front, the U.S. economy added 164,000 jobs in July. The job gains pushed the size of the U.S. labor force to a record high. Wages rose 3.2% on a year-over-year basis.
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