Domestic equity barometers extended losses and hit fresh intraday low in mid-morning trade. Sentiment was impacted by negative global cues amid rising coronavirus cases and ongoing US-China tensions. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 293.56 points or 0.77% at 37,846.91. The Nifty 50 index lost 93.95 points or 0.84% at 11,121.50.
Selling was broad based. In the broader market, the S&P BSE Mid-Cap index shed 0.88% while the S&P BSE Small-Cap index skid 0.61%.
The market breadth was negative. On the BSE, 707 shares rose and 1546 shares fell. A total of 123 shares were unchanged.
Buzzing Index:
The Nifty Metal index fell 2.27% to 2,082.95. The index gained 0.83% yesterday.
Hindustan Zinc (down 4.03%), Hindalco Industries (down 3.52%), SAIL (down 3.27%), Jindal Steel & Power (down 2.79%), NALCO (down 2.65%), Hindustan Copper (down 2.43%), Vedanta (down 2.11%), Welspun Corp (down 2.08%), Tata Steel (down 1.75%), APL Apollo Tubes (down 1.52%), Coal India (down 1.35%), MOIL (down 1.3%), NMDC (down 1.22%), JSW Steel (down 1.19%) and Ratnamani Metals Tubes (down 0.93%) declined.
Stocks in Spotlight:
ABB India tumbled 3.04% to Rs 908 after the company reported 76.66% drop in net profit to Rs 16.28 crore on 42.88% fall in net sales to Rs 985.78 crore in Q2 June 2020 over Q2 June 2019. Profit before tax (PBT) stood at Rs 21.41 crore in Q2 June 2020, falling 81% from Rs 112.66 crore in Q2 June 2019. Total tax expense stood at Rs 6.66 crore in Q2 June 2020, down 85% compared with Rs 42.92 crore in Q2 June 2019.
ABB said profitability was impacted due to lower revenues during the quarter was offset to a reasonable extent by various cost saving initiatives that were implemented by the company as well as favorable forex valuations.
The company received orders worth Rs 1200 crore in Q2 June 2020 as against Rs 1989 crore in Q2 June 2019. During the quarter,the company succeeded in securing orders in varied sectors,including power distribution equipment, automation projects for process industries, food and beverage and electronics. Sectors with continued investment include, rail infrastructure, industrial buildings as well as water and waste-water.
Can Fin Homes fell 1.59% to Rs 394.05. The company's board approved plans to raise funds up to Rs 5000 crore, of which Rs 4000 crore would be through issuance of debt secturities and Rs 1000 crore via equity.
Global Markets:
Most Asian markets declined on Friday following the selloff on Wall Street on account of rising US-China tensions.
The US stock market finished session lower on Thursday, 23 July 2020, as investors opted to book recent gains due to unexpected rise in U.S. jobless claims and mixed earnings reports. Meanwhile, simmering Sino-U.S. tensions and growing signs of a worsening coronavirus pandemic also fueled selloff.
The Labor Department data showed 1.416 million Americans filed for first-time benefits for the week ending July 18, a rise of 109,000. It was the 18th straight week in which initial claims totaled more than 1 million, and it snapped a 15-week streak of declining initial claims.
The weekly employment report has become one of the key measures of the state of the COVID-19 pandemic that has been resurgent in many US states recently, forcing the reimposition of restrictions to curtail the spread of the deadly illness.
In the latest deterioration in Sino-U.S. ties, Beijing vowed to close the U.S. consulate in the southwestern city of Chengdu. The move comes after the U.S. ordered the closure of a Chinese consulate in Houston, citing fraud and espionage, highlighting rising tensions between the global superpowers.
Investors await the outcome of negotiations by lawmakers over further fiscal stimulus. Senate Republicans and the White House struck an agreement on a $1 trillion coronavirus relief package, as a $600 weekly supplement to unemployment benefits is set to expire at the end of this month. The proposal sets the stage for further talks between Senate Republicans and Democrats, who have coalesced around a $3.5 trillion bill that was passed in the House in May.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)