Key benchmark indices registered modest losses as investors' sentiment was hit after a private survey data showed deterioration in India's services sector activity last month. The barometer index, the S&P BSE Sensex, fell 318.87 points or 0.94% at 33,728.07, as per the provisional closing data. The Nifty 50 index declined 98.30 points or 0.94% at 10,360.05, as per the provisional closing data. The Sensex closed below the 34,000 level after falling below that level in early trade. Metal and mining stocks dropped on fears that US President Donald Trump's announced tariffs on steel and aluminum could spark a trade war.
Weakness in Asian stocks also weighed on sentiment on the domestic bourses as investors digested the latest growth forecast for China and uncertain Italian election result.
The Sensex fell 12.56 points, or 0.04%, at the day's high of 34,034.38 in early trade. The index lost 393.53 points, or 1.15%, at the day's low of 33,653.41 in afternoon trade, its lowest level since 19 February 2018.
The Nifty fell 29.65 points, or 0.28%, at the day's high of 10,428.70 in early trade. The index lost 134.45 points, or 1.28%, at the day's low of 10,323.90 in afternoon trade, its lowest level since 19 February 2018.
Key indices kick-started the session on a weaker note and thereafter extended intraday losses to languish in red till afternoon trade. Indices trimmed some losses in mid-afternoon trade before closing the session with modest losses.
Among secondary indices, the S&P BSE Mid-Cap index provisionally fell 0.95%. The S&P BSE Small-Cap index provisionally dropped 1.09%. Both these indices underperformed the Sensex.
Overseas, European stocks edged higher amid initial volatility after an uncertain Italian election result left the country preparing for the prospect of a hung parliament. Asian stocks edged lower as China's National People's Congress meeting kicked off with Premier Li Keqiang announcing 2018 growth target for China at around 6.5%. Among other economic data, the China's Caixin services purchasing managers' index (PMI) dipped to 54.2 in February from 54.7 in the previous month.
US stocks closed well off session lows on Friday, 2 March 2018, helped by a sharp rise in health care shares. Stocks traded sharply lower earlier in the session on fears that President Donald Trump's announced tariffs on steel and aluminum could spark a trade war.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on the BSE. 2,014 shares declined and 738 shares advanced.
A total of 163 shares were unchanged.
The total turnover on BSE amounted to Rs 4025.85 crore, higher than the turnover of Rs 3926.31 crore registered during the previous trading session.
Metal and mining stocks dropped on fears that US President Donald Trump's announced tariffs on steel and aluminum could spark a trade war. Jindal Steel & Power (down 4.22%), Steel Authority of India (down 3.77%), JSW Steel (down 4.26%), NMDC (down 6.01%), Hindalco Industries (down 4.66%), Hindustan Copper (down 1.79%), National Aluminium Company (down 4.9%), Tata Steel (down 2.9%), Vedanta (down 2.43%) and Hindustan Zinc (down 0.93%) edged lower.
BPCL was down 1.32%. The company's wholly owned subsidiary Bharat PetroResources (BPRL) said that Anadarko Mocambique Area I Limitada, operator of the Rovuma Offshore Area 1, Mozambique, has announced it has received approval from the Government of Mozambique for the Golfinho- Atum Field Development Plan. This Development Plan outlines the integrated onshore LNG project from the reservoir to the LNG market and is a culmination of the progress made to date on the technical and commercial aspects of the LNG development. This marks the achievement of a critical milestone which positions the Area I consortium and Mozambique as a strategic global LNG supplier. The announcement was made during market hours today, 5 March 2018.
ONGC dropped 2.4%. The company's wholly owned subsidiary ONGC Videsh said that the Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. The plan outlines the integrated development of the Golfinho-Atum field through an initial two train onshore liquefaction plant with a total processing capacity of 12.88 million metric tons per annum (MMTPA). The announcement was made during market hours today, 5 March 2018.
Among economic data, the business conditions in India's service sector deteriorated in February. The seasonally adjusted Nikkei India services purchasing managers' index (PMI) dropped to 47.8 in February, from 51.7 in January. The data was released at 10:30 IST today, 5 March 2018.
Among key domestic events, in a big morale booster to the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) at the centre, the BJP along with its ally Indigenous People's Front Of Tripura has secured a comfortable majority by bagging 43 out of 59 seats in the recently held assembly elections in Tripura. In Nagaland, the ruling Naga Peoples Front (NPF) emerged as the single largest party, securing 27 out of 59 seats. The BJP has secured 12 seats. In a rude shock, the Congress party has been wiped out from Tripura and Nagaland, having failed to secure a single seat in these two states. In Meghalaya, the Congress has emerged as the single largest party, securing 21 out of 59 assembly seats, followed by the National People's Party bagging 19 seats. The counting of votes for the assembly elections took place over the weekend.
Meanwhile, the developments in the Budget Session of Parliament will be closely watched. Both the Houses of Parliament which were adjourned on 9 February 2018 for a recess, resumed today, 5 March 2018. The second part of the session would primarily see discussions on the demand for grants for various ministries.
Meanwhile, both the houses of Parliament were adjourned till 11:00 IST tomorrow, 6 March 2018 over ruckus on the Punjab National Bank (PNB) scam.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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