Key benchmarks were hovering in a narrow range in negative terrain in afternoon trade. At 13:22 IST, the barometer index, the S&P BSE Sensex, was down 299.37 points or 0.85% at 34,767.38. The Nifty 50 index declined 96.50 points or 0.90% at 10,664.10. The Sensex was trading below the 35,000 level after slipping below that level in intraday trade.
Key indices opened on a weaker note tracking slide in Asian markets and sharp decline in US stocks. Later, indices languished in negative terrain so far. Global stocks declined after a stronger-than-expected US jobs report sent bond yields surging. Also, the trading of US index futures showed a weak opening of US stocks today, 5 February 2018.
Among the secondary indices, the S&P BSE Mid-Cap index declined 0.60%. The S&P BSE Small-Cap index fell 0.67%. Both these indices underperformed the Sensex.
Investor sentiment remained negative after Finance Minister Arun Jaitley announced long term capital gains (LTCG) tax in Union Budget 2018. The Budget proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10%.
The market breadth, indicating the overall health of the market, was weak.
On the BSE, 1,666 shares fell and 995 shares rose. A total of 153 shares were unchanged.
IT shares were mixed. MindTree (down 5.98%), TCS (down 1.5%), Persistent Systems (down 0.51%), Hexaware Technologies (down 0.36%) and HCL Technologies (down 0.12%), edged lower. Wipro (up 0.32%), Infosys (up 0.34%), MphasiS (up 0.43%), Oracle Financial Services Software (up 0.81%) and Tech Mahindra (up 1.03%), edged higher.
Pharmaceutical shares were mixed. Wockhardt (up 1.71%), Aurobindo Pharma (up 0.88%), Sun Pharmaceutical Industries (up 0.79%), Dr Reddy's Laboratories (up 0.59%), Lupin (up 0.58%), Alkem Laboratories (up 0.30%) and GlaxoSmithKline Pharmaceuticals (up 0.01%), edged higher. Glenmark Pharmaceuticals (down 0.45%), Cadila Healthcare (down 0.51%), Cipla (down 0.74%), Piramal Enterprises (down 0.83%), Divi's Laboratories (down 1.01%), IPCA Laboratories (down 1.15%) and Strides Shasun (down 2.62%), edged lower.
Indo Rama Synthetics (India) rose 2.07% after the company said that its board of directors will consider issuance of secured redeemable non-convertible debentures to the investors. The announcement was made on Saturday, 3 February 2018.
The company said that its board of directors in a meet scheduled on 7 February 2018, will consider issuance of secured, redeemable, non-convertible debentures (NCDs) to the investors other than promoters by way of preferential issue on private placement basis. The board will also consider issuance of secured, compulsorily convertible debentures (CCDs) to the investors other than promoters by way of a preferential issue on private placement basis.
Vinati Organics lost 5.11% after net profit fell 9.45% to Rs 31.73 crore on 12.03% rise in total income to Rs 187.43 crore in Q3 December 2017 over Q3 December 2016. The result was announced on Saturday, 3 February 2018.
On the macro front, Markit Economics data of a monthly survey on the performance of India's services sector in January 2018 showed that the Nikkei India Services PMI increased to 51.7 in January from 50.9 in December 2017.
Overseas, Asian stocks were trading lower following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services purchasing managers' index (PMI) increased to 51.9 in January from 51.2 in December 2017.
China's Caixin services PMI rose to 54.7 in January from December's 53.9, expanding at its fastest pace in almost six years, data released today, 5 February 2018 showed. The 50-mark separates growth from contraction on a monthly basis.
Trading of US index futures showed that Dow could slip 165 points at the opening bell today, 5 February 2018. US stocks fell sharply on Friday, 2 February 2018 on surging bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.
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