Key equity benchmarks were trading with modest losses in early afternoon trade. At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 124.96 points or 0.37% at 33,719.90. The Nifty 50 index was down 46.25 points or 0.44% at 10,351.20. Auto stocks fell. FMCG stocks edged lower.
Trading could be volatile as traders roll over positions in the F&O segment from the near month February 2018 series to March 2018 series. The February 2018 F&O contracts expire today, 22 February 2018.
Domestic stocks nudged lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade. Key benchmark indices continued to trade in a small range in negative zone in mid-morning trade.
The S&P BSE Mid-Cap index was down 0.34%. The S&P BSE Small-Cap index was down 0.2%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,474 shares fell and 982 shares rose. A total of 132 shares were unchanged. Breadth was weak till morning trade. It turned negative in mid-morning trade.
Dr Reddy's Laboratories (down 2.52%), ONGC (down 2.1%) and Axis Bank (down 0.97%) edged lower from the Sensex pack.
Auto stocks fell. Tata Motors (down 1.03%), Maruti Suzuki India (down 0.91%), Eicher Motors (down 1.15%), Ashok Leyland (down 0.34%), Bajaj Auto (down 0.47%) and Hero MotoCorp (down 0.53%) declined. Escorts (up 0.82%) and TVS Motor Company (up 0.5%) rose.
Mahindra & Mahindra (M&M) slipped 0.49%. M&M said that it has signed a share subscription & shareholders agreement and a share purchase agreement for acquisition of up to 1,296 equity shares and subscribing upto 6,074 compulsory convertible cumulative preference shares which on an as-converted to equity share basis, would result in the company holding in aggregate 22.9% of the equity share capital of Carnot Technologies on a fully diluted basis. The announcement was made after market hours yesterday, 21 February 2018.
Carnot Technologies is an Indian company, which provides products and services related to internet connected devices for monitoring performance of vehicles and equipment. It had a turnover of Rs 1.2 crore for FY 2016-17.
Acquisition of shares in Carnot is expected to support company's businesses by developing information technology solutions for its products. The indicative time period for completion of the acquisition is 31 March 2018. The cost of acquisition is Rs 6.06 crore.
FMCG stocks edged lower. Colgate-Palmolive (India) (down 2.08%), Dabur India (down 1.44%), Godrej Consumer Products (down 0.34%), Hindustan Unilever (down 1.13%), Marico (down 0.37%), Tata Global Beverages (down 1.12%), Procter & Gamble Hygiene and Health Care (down 0.48%) and Jyothy Laboratories (down 0.26%) and Bajaj Corp (down 0.25%) fell. GlaxoSmithkline Consumer Healthcare (up 2.66%), Nestle India (up 0.07%) and Britannia Industries (up 0.58%) rose.
Hatsun Agro Product rose 0.56% after the company said that the rights issue committee approved the draft letter of offer dated 21 February 2018, with respect to the issue of partly paid-up equity shares to the existing equity shareholders of the company on a rights basis for an amount aggregating up to Rs 550 crore. The announcement was made after market hours yesterday, 21 February 2018.
Cyient rose 2.18%. Cyient said its board approved reduction of aggregate investment limits of non-residents from the existing 100% to 49% of the paid up share capital of the company, subject to statutory approvals. The announcement was made after market hours yesterday, 21 February 2018.
Overseas, most Asian shares slipped as speculation of faster hikes in US interest rates soured risk appetite globally. US stocks ended a tumultuous session yesterday, 21 February 2018 firmly lower after minutes from the Federal Reserve's most recent policy-setting meeting sparked a fresh wave of volatility. Minutes of the January 30-31 Federal Open Market Committee meeting showed that officials saw a stronger economy than at the end of 2017 and that more rate increases were in the offing.
An index that tracks US manufacturers rose to a nearly 3-year high in February and a gauge for service-oriented companies hit a six-month peak, according to IHS Markit's flash PMI. The manufacturing index rose to 55.9 from 55.5. The services barometer climbed to 55.9 from 53.3.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
