Stocks staged a mild recovery in early afternoon trade after a steep intraday slide. At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 372.04 points or 1.09% at 33,661.92. The Nifty 50 index was down 108.90 points or 1.07% at 10,115.85. Capital goods stocks declined. Negative Asian stocks impacted sentiment on the domestic bourses.
The Sensex was currently trading below the psychological 34,000 level after sliding below that level in opening trade. Trading for the day began on a weak note as the key benchmark indices saw a gap-down opening on negative Asian stocks. Stocks extended slide in morning trade on selling pressure in index pivotals. Key indices continued to trade with weakness near the day's low in mid-morning trade.
The S&P BSE Mid-Cap index was down 1.2%. The S&P BSE Small-Cap index was down 1.48%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 641 shares rose and 1612 shares fell. A total of 95 shares were unchanged.
Trading could be volatile as traders roll over positions in the F&O segment from the near month October 2018 series to November 2018 series. The October 2018 F&O contracts expire today, 25 October 2018.
Capital goods stocks declined. ABB India (down 1.73%), BEML (down 4%), Bharat Electronics (down 2.78%), L&T (down 1.12%), Punj Lloyd (down 0.22%), Siemens (down 2.11%) and Thermax (down 0.41%) edged lower.
Bharat Heavy Electricals lost 5.33% after net profit declined 60.43% to Rs 185.17 crore on 6.35% increase in total income from operations to Rs 6779.88 crore in Q2 September 2018 over Q2 September 2017. The result was announced during trading hours today, 25 October 2018.
SKF India rose 4.94% to Rs 1,792.50. The board of directors of SKF India approved a buyback proposal for purchase by the company of up to 19 lakh equity shares (representing 3.70% of the total paid up equity capital of the company) of Rs 10 each from the shareholders of the company on a proportionate basis by way of a tender offer at a price of Rs 2,100 each for an aggregate amount not exceeding Rs 399 crore. The announcement was made after market hours yesterday, 24 October 2018.
Net profit of SKF India rose 13.98% to Rs 84.30 crore on 12.68% rise in net sales to Rs 766.04 crore in Q2 September 2018 over Q2 September 2017. The result was announced after market hours yesterday, 24 October 2018.
Overseas, Asian stocks declined as concerns mount that corporate profits and economic growth are peaking amid rising borrowing costs. US stocks dropped yesterday, 24 October 2018 as mixed corporate earnings and weak housing data fueled anxiety that rising prices will crimp economic growth.
China's recent stock market troubles and political drama in Europe surrounding Italy's budget row with the European Union as well as Britain's efforts to exit from the EU also have combined to hurt investor sentiment.
On the US data front, the flash reading of IHS Markit's manufacturing purchasing managers index rose to a five-month high of 55.9 in October from 55.6, while the flash services PMI rose to a two-month high of 54.7 from 53.5 in September. A reading of at least 50 indicates improving conditions.
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