Key benchmark indices ended lower in volatile trade. The barometer index, the S&P BSE Sensex, fell 63.61 points or 0.21% to 30,301.64, as per the provisional closing data. The Nifty 50 index fell 16.40 points or 0.17% to 9,369.75, as per the provisional closing data. Sentiment was dampened by escalating Indo-Pak tensions. Moody's downgrading its sovereign credit rating on China also hurt risk appetite.
Media reports suggested that Pakistani fighter jets flew near the Siachen Glacier today, 24 May 2017, but Indian Air Force reportedly said there was no violation of India's air space. The report of Pakistani jets flying near Siachen came a day after the Indian Army announced that it had launched "punitive fire assaults" on Pakistani positions across the Line of Control (LoC) earlier this month, inflicting some damage.
The Sensex hit its lowest intraday level in more than 1-1/2 weeks in mid-afternoon trade. The Nifty hit its lowest intraday level in two weeks in mid-afternoon trade. The Sensex fell 117.65 points, or 0.39% at the day's low of 30,247.60 in mid-afternoon trade, its lowest intraday level since 12 May 2017. The index rose 168.90 points, or 0.56% at the day's high of 30,534.15 in mid-morning trade. The Nifty fell 44.50 points, or 0.47%, at the day's low of 9,341.65 in mid-afternoon trade, its lowest intraday level since 10 May 2017. The index rose 45.75 points, or 0.49% at the day's high of 9,431.90 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 1.43% . The BSE Small-Cap index provisionally fell 1.44%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness. There were almost three losers against every gainer on BSE. 2,019 shares declined and 700 shares rose. A total of 150 shares were unchanged.
The total turnover on BSE amounted to Rs 3815.25 crore, lower than turnover of Rs 4160.66 crore registered during the previous trading session.
Metal shares declined after Moody's downgraded debt rating of China, the world's biggest consumer of metals. Steel Authority of India (down 4.37%), Bhushan Steel (down 3.99%), Hindustan Zinc (down 3.7%), Hindustan Copper (down 3.2%), NMDC (down 3.06%), Vedanta (down 3.01%), Hindalco Industries (down 2.4%), JSW Steel (down 2.07%), National Aluminium Company (down 1.81%) and Tata Steel (down 1.5%), edged lower. Jindal Steel & Power rose 2.83%.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for July 2017 delivery was currently down 0.69% at $2.578 per pound on the COMEX.
Pharma major Lupin lost 0.97% after consolidated net profit fell 49.16% to Rs 380.21 crore on 1.33% growth in total revenue from operations to Rs 4253.30 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 24 May 2017.
During Q4 March 2017, the company made a provision for liability towards its Australian subsidiary amounting to Rs 155.90 crore in respect of compensation for patent litigation towards its Isabelle generic launch in Australia.
Nilesh Gupta, Managing Director, Lupin, said that the company had a stellar year with a strong double-digit growth across all its regions. Steady progress on its complex generic pipeline, its impeccable record of compliance and focus on operational excellence will help sustain its growth momentum in the mid to long-term, he added.
Adani Ports and Special Economic Zone (APSEZ) rose 2.80% after consolidated net profit rose 27% to Rs 1179 crore on 18% rise in revenue from operations to Rs 2231 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 24 May 2017.
APSEZ's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 32% to Rs 1638 crore in Q4 March 2017 over Q4 March 2016.
Meanwhile, Adani Ports has clarified with regards to news report suggesting Comptroller and auditor general (CAG) of India ruling of Vizhinjam Port agreement is not in favour of state, that the company has not received any report from CAG neither any letter from the state government on the same.
Bharat Forge rose 4.03% after net profit rose 25.32% to Rs 207.50 crore on 10.67% growth in total income to Rs 1205.37 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 24 May 2017.
Bharat Forge's Chairman & Managing Director B.N. Kalyani said that in Q4 March 2017, the company continued to witness sales growth, strong profitability and reduction of debt. The increase in sales was broad-based across segments and geographies, he said.
Looking ahead into FY 2018, the company expects its performance to be better than the underlying market demand, driven by improvement in North American market across sectors, ramp up of passenger vehicle business and increasing share of business from new sectors, Kalyani stated.
Overseas, European stocks were trading lower after China's rating was downgraded by Moody's and as markets were still recovering from the Manchester bombing.
Asian shares settled higher as investors looked ahead to US Federal Reserve views on interest rate hike prospects and await an upcoming OPEC meeting. Investors are awaiting the release of minutes from the Fed from its previous meeting for details on the probability of a rate hike in June.
China's Shanghai Composite bounced back from intraday low and settled higher by 0.06%. Moody's Investors Service downgraded China's credit rating to A1 from Aa3, changing its outlook to stable from negative, citing concerns efforts to support growth will spur debt growth across the economy.
In US, shares closed higher yesterday, 23 May 2017, marking a fourth straight session in the green following the White House's release of its 2018 budget proposal. On the economic data front, US flash PMI reading for services and manufacturing for May were mixed. Manufacturing PMI dipped to an 8-month low, while services PMI rose to a 4-month high.
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