Key benchmark indices logged modest losses on last trading day of the week led by index pivotals State Bank of India (SBI), Reliance Industries (RIL) and ICICI Bank. The barometer index, the S&P BSE Sensex, fell 155.14 points or 0.41% to settle at 37,869.23. The Nifty 50 index fell 41.20 points or 0.36% to settle at 11,429.50. The Sensex settled below the psychological 38,000 level after falling below that level in early trade.
On the macro front, the government will declare industrial production (IIP) data for June at 17:30 IST today, 10 August 2018.
Intraday volatility was high. Stocks edged lower in early trade, with the Sensex falling below the psychological 38,000 level tracking mostly negative Asian stocks. Key benchmark indices continued to trade lower in morning trade. Stocks staged a mild recovery in early afternoon trade after hitting intraday low in mid-morning trade. Indices turned range bound in afternoon trade. Volatility ruled the roost in mid-afternoon trade as stocks drifted lower soon after staging an intraday recovery. Stocks extended losses and hit intraday low in late trade.
The Sensex fell 155.14 points or 0.41% to settle at 37,869.23. The index hit high of 38,051.45 and low of 37,815.75 during the day.
The Nifty 50 index fell 41.20 points or 0.36% to settle at 11,429.50. The index hit high of 11,478.75 and low of 11,419.65 during the day.
The S&P BSE Mid-Cap index fell 0.8%. The S&P BSE Small-Cap index fell 0.78%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1051 shares rose and 1677 shares fell. A total of 132 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 2.01%), the S&P BSE Basic Materials index (down 1.58%), the S&P BSE Utilities index (down 1.41%), the S&P BSE Capital Goods index (down 1.18%), the S&P BSE Industrials index (down 1.13%), the S&P BSE Healthcare index (down 1.04%), the S&P BSE Power index (down 0.99%), the S&P BSE Telecom index (down 0.83%), the S&P BSE Bankex (down 0.8%), the S&P BSE Energy index (down 0.65%) and the S&P BSE Finance index (down 0.64%) underperformed the Sensex.
The S&P BSE Oil & Gas index (down 0.25%), the S&P BSE Realty index (down 0.15%), the S&P BSE FMCG index (up 0.09%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.17%), the S&P BSE Auto index (up 0.26%), the S&P BSE Teck index (up 0.34%), the S&P BSE IT index (up 0.5%) and the S&P BSE Consumer Durables index (up 0.79%), outperformed the Sensex.
Reliance Industries (down 1.15%), ICICI Bank (down 1.44%), Sun Pharmaceutical Industries (down 3%) edged lower from the Sensex pack.
State Bank of India (SBI) lost 3.79% after the bank reported net loss of Rs 4875.85 crore in Q1 June 2018 as compared with net profit of Rs 2005.53 crore in Q1 June 2017. Total income rose 4.1% to Rs 65492.67 crore in Q1 June 2018 over Q1 June 2017. The result was announced during market hours today, 10 August 2018.
The bank's gross non-performing assets (NPAs) stood at Rs 212839.92 crore as on 30 June 2018 as against Rs 223427.46 crore as on 31 March 2018 and Rs 188068.49 crore as on 30 June 2017.
The ratio of gross NPAs to gross advances stood at 10.69% as on 30 June 2018 as against 10.91% as on 31 March 2018 and 9.97% as on 30 June 2017. The ratio of net NPAs to net advances stood at 5.29% as on 30 June 2018 as against 5.73% as on 31 March 2018 and 5.97% as on 30 June 2017.
State Bank of India (SBI) said that executive committee of central board (ECCB) accorded approval to explore and initiate the process of divestment upto 4% of stake of SBI in SBI General Insurance Company to a non-promoter entity through small parcel share sale (SPSS). The announcement was made after market hours yesterday, 9 August 2018.
Metal and mining stocks fell. Vedanta (down 2.97%), JSW Steel (down 0.93%), Tata Steel (down 1.63%), Steel Authority of India (Sail) (down 2.74%), National Aluminium Company (down 3.18%), NMDC (down 0.75%), Hindustan Zinc (down 0.59%) and Jindal Steel & Power (down 6.24%) edged lower. Hindustan Copper (up 1.25%) rose.
Hindalco Industries fell 2.22%. The company's PAT rose 102% to Rs 734 crore in Q1 June 2018 over Q1 June 2017 driven by higher EBITDA and lower finance costs. The company's revenue (India operations) stood at Rs 10670 crore for Q1 June 2018. The result was announced during market hours today, 10 August 2018.
State-run gas utility GAIL (India) lost 3.4%. The company net profit rose 23% to Rs 1259 crore in Q1 June 2018 over Q1 June 2017. Gross sales rose 50% to Rs 17262 crore in Q1 June 2018 over Q1 June 2017. The increase in net profit in Q1 on year on year basis was supported by better physical performance in every segment, natural gas marketing & transmission volumes were up by 24% and 7% respectively, petrochemical sales was up by 27%, liquid hydrocarbon sales was up by 7% and LPG transmission was up by 1%. The result was announced during market hours today, 10 August 2018.
Tata Motors lost 2.82%. Jaguar Land Rover during market hours today reported total retail sales of 36,144 vehicles in July 2018, down 21.6% year on year, primarily reflecting transitional issues in certain markets. For July Jaguar retail sales were 10,992 and Land Rover retail sales were 25,152 vehicles, down 15.2% and 24% respectively on the same month last year.
Retails for July were down in China (46.9%), reflecting continued market volatility in the first month of the duty change as well as trade tensions. Sales were also down in Europe (26.5%) and the UK (18.3%), impacted by the industry-wide issue of delays in WLTP certification of 2019 model year vehicles.
Retail sales were also down in North America (9.5%), resulting from softer industry volumes (down more than 3%) combined with foregoing some higher discounted business and later timing for new model year launches this year compared to a year ago.
Eicher Motors advanced 5.55%. On a consolidated basis, net profit of Eicher Motors rose 25.36% to Rs 576.18 crore on 27.24% rise in net sales to Rs 2534.29 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 9 August 2018.
In the quarter ended June 2018, Royal Enfield posted its best ever performance. Royal Enfield sold 225,286 motorcycles in Q1 June 2018, registering a growth of 23% over 183,731 motorcycles sold in the same period last year.
Tata Consultancy Services (TCS) rose 0.98%. TCS during market hours today announced that Bahrain-based SNIC Insurance (formerly known as Saudi National Insurance Company) has selected TCS BaNCS for Insurance to support its ambitious digital transformation strategy in order to establish a unique leadership position in the market.
TCS BaNCS will power SNIC's strategy and enable competitive advantage by supporting General and Medical Insurance, Financials and Business Intelligence. By leveraging this core platform, the company will be able to harmonize several existing product lines as well as roll out new products faster.
Jet Airways (India) lost 8.39%. The company said that its board of directors deferred the matter of consideration of the unaudited financial results for the quarter ended 30 June 2018. The audit committee did not recommend the financial results to the board for its approval, pending closure of certain matters. The announcement was made after market hours yesterday, 9 August 2018.
Zensar Technologies rose 2.91% to Rs 1,230.25 after consolidated net profit rose 13.32% to Rs 83.91 crore on 11.04% increase in net sales to Rs 904.66 crore in Q1 June 2018 over Q4 March 2018. Separately, Zensar Technologies said that its board has set 10 September 2018 as record date for ascertaining entitlement to sub-divided shares. The announcement was made after market hours yesterday, 9 August 2018. At its meeting in April 2018, the company's board had approved a stock split in the ratio of five shares for every one share held.
Overseas, European shares were trading lower as investors reacted to corporate earnings, fresh turmoil for Turkey and continued fears of a trade war between the US and China. Most Asian stock markets dropped as trade and broader geopolitical concerns continue to weigh on over investor sentiment.
Japan's economy expanded in the April-June period after a mild contraction in the previous three months. The world's third-largest economy expanded at an annualized pace of 1.9% in the second quarter of 2018 after a revised 0.9% contraction in the first quarter.
The US stock market ended mostly lower on Thursday, as investors weighed the continuing trade dispute between the US and China against the backdrop of strong corporate earnings and a healthy economic performance.
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