Domestic stocks registered modest losses in a quiet session of trade as trading in US stock index futures indicated steep losses for US stocks at the opening bell today, 20 February 2018. The barometer index, the S&P BSE Sensex, fell 71.07 points or 0.21% at 33,703.59, as per the provisional closing data. The Nifty 50 index fell 18 points or 0.17% at 10,360.40, as per the provisional closing data. Key indices fell for third straight day with the sentiment taking a hit by the recent detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB). Most auto stocks declined.
Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade. Stocks extended early gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed gains soon after hitting intraday high in mid-morning trade. The market hovered with small gains in early afternoon trade. Indices trimmed gains after regaining strength in afternoon trade. Stocks were trading with steady gains in mid-afternoon trade. Key indices sink in negative zone in late trade as trading in US stock index futures indicated steep losses for US stocks at the opening bell today, 20 February 2018.
The S&P BSE Mid-Cap index provisionally fell 0.06%. The S&P BSE Small-Cap index provisionally declined 0.15%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,470 shares fell and 1,263 shares rose. A total of 167 shares were unchanged. Breadth was negative in early trade. It was strong in morning trade. It once again turned negative in mid-morning trade. The breadth alternately swung between positive and negative zone uptill mid-afternoon trade.
The total turnover on BSE amounted to Rs 3404.96 crore, lower than the turnover of Rs 4105.25 crore registered during the previous trading session.
Ambuja Cements gained 3.55% after consolidated net profit jumped 77.41% to Rs 479 crore on 24.74% rise in net sales to Rs 6021 crore in Q4 December 2017 over Q4 December 2016. The result was announced during market hours today, 20 February 2018.
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Most auto stocks declined. Escorts (down 0.66%), Eicher Motors (down 0.75%), Maruti Suzuki India (down 0.29%) and TVS Motor Company (down 0.2%) fell. Hero MotoCorp (up 1.15%), Ashok Leyland (up 0.64%), Tata Motors (up 0.22%) and Bajaj Auto (up 0.33%) rose.
Mahindra & Mahindra (M&M) dropped 2.42%. The company announced that it would make an additional investment at its Chakan plant in Maharashtra. As part of its expansion plans, the company will invest over Rs 500 crore in its electric vehicle (EV) project under the new EV policy of the Government of Maharashtra. The announcement was made after market hours yesterday, 19 February 2018.
The investment for EV and EV components is in addition to its ongoing expansion plan in Chakan which includes an initial investment of Rs 6500 crore. This additional investment of Rs 500 crore will be utilized towards product development and capacity enhancement for EVs and related components.
Gitanjali Gems was locked at 10% lower circuit at Rs 30.45, with the stock extending previous four session's slide after the company's promoter Mehul Choksi's name figured in the recently unearthed massive banking fraud in PNB. Mehul Choksi held 22.81% stake in Gitanjali Gems end December 2017.
Shares of Gitanjali Gems have slumped 51.55% in five trading sessions to its ruling market price of Rs 30.45, from its closing of Rs 62.85 on 12 February 2018, after Punjab National Bank (PNB) disclosed to the stock exchanges on 14 February 2018 about the detection of a massive banking fraud amounting to $1771.69 million (about Rs 11500 crore) in one of its branches in Mumbai.
The massive banking scam allegedly involves jeweller Nirav Modi as the prime accused in connivance with some PNB officials. The name of Mehul Choksi, promoter of Gitanjali Gems, also figured in this scam. Mehul Choksi is uncle of Nirav Modi. The Government of India has already directed investigative agencies for a probe into this scam.
Overseas, European stocks edged higher but gains among main national indexes remain limited as investors await for Wall Street to reopen after Monday's holiday break. Trading in US stock index futures indicated steep losses for US stocks at the opening bell today, 20 February 2018. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 191 points at the opening bell.
Most Asian stocks fell today, 20 February 2018 in thin holiday trade as markets in China and Taiwan remained closed for the Lunar New Year holidays. US markets remained closed yesterday, 19 February 2018 in observance of President's Day.
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