Stocks cut losses in mid-afternoon trade soon after hitting intraday low. At 14:21 IST, the barometer index, the S&P BSE Sensex, was down 198.79 points or 0.53% at 37,590.34. The Nifty 50 index was down 57.85 points or 0.51% at 11,301.60. Metal and mining stocks declined.
Key indices edged lower in early trade on negative Asian stocks. Stocks cut losses in morning trade after an initial slide. The market hovered in negative zone in mid-morning trade. Shares extended losses in afternoon trade.
The S&P BSE Mid-Cap index was down 0.34%. The S&P BSE Small-Cap index was down 0.54%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 945 shares rose and 1385 shares fell. A total of 156 shares were unchanged.
Asian Paints fell 1.27% ahead of its January-March 2019 quarterly earnings today, 9 May 2019.
HCL Technologies fell 1.08% ahead of its January-March 2019 quarterly earnings today, 9 May 2019.
Metal and mining stocks declined. Vedanta (down 0.69%), JSW Steel (down 2.64%), Tata Steel (down 0.86%), Steel Authority of India (Sail) (down 1.23%), National Aluminium Company (down 0.03%), Hindustan Zinc (down 1.43%), Jindal Steel & Power (down 4.09%), NMDC (down 0.78%), edged lower. Hindustan Copper (up 0.23%) rose.
Hindalco Industries fell 1.2% after wholly-owned subsidiary, Novelis, reported a 5.5% decline in net income to $103 million in Q4 March 2019 over Q4 March 2018. Hindalco Industries made the announcement after market hours yesterday, 8 May 2019.
Novelis, the wholly-owned subsidiary of Hindalco Industries, posted a 5.5% decline in net income at $103 million in the quarter ended on 31 March 2019. It posted a net income of $109 million in the year-ago period, Hindalco said in a filing to BSE. Net sales increased 1% over the prior year to $3.1 billion in the fourth quarter of fiscal 2019, driven by higher total shipments, partially offset by lower average aluminum prices.
Shipments of flat rolled products increased 8% to 870 kilotonnes. Adjusted EBITDA for the fourth quarter of fiscal 2019 increased 12% to $357 million as compared to $319 million in the prior year. This increase reflects the favorable impacts from higher shipments, improved product mix, and favorable metal costs.
Index heavyweight Reliance Industries (RIL) dropped 3.04% to Rs 1,260 after a foreign brokerage firm reportedly downgraded the company to equal-weight, with a price target at Rs 1,349 per share. Earnings upswing of the last two fiscal is likely to reverse and the upside appears limited, as the core business of the company drags, the brokerage reportedly said.
Overseas, shares in Europe and Asia tumbled on Thursday as increased tensions ahead of key Sino-US trade negotiations raised fresh concerns about the outlook for the global economy.
The US stock market switched direction toward the closing bell to finish mostly lower Wednesday as worries over US-China trade talks lingered.
US President Trump, in a pair of tweets on Wednesday morning, said he would be happy to keep tariffs on Chinese exports rather than make a bad deal, setting the stage for a contentious round of talks between the United States and China that is set to begin on Thursday. Mr. Trump's comments provoked a swift response from the Chinese Commerce Ministry, which suggested that it was once again ready to retaliate against American companies and their products with its own countermeasures.
The United States will raise tariffs from 10% to 25% on $200 billion worth of Chinese imports effective May 10, as per reports. The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs.
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