The domestic market dropped a little after on Wednesday after opening flat with Sensex and Nifty hovering in negative territory following the subdued global cues as US stock markets saw considerable declines on Tuesday on rising Treasury yield.
The domestic market dropped a little after on Wednesday after opening flat with Sensex and Nifty hovering in negative territory following the subdued global cues as US stock markets saw considerable declines on Tuesday on rising Treasury yield. The global indicators for Indian equities, SGX Nifty Futures traded lower on Wednesday after the major US benchmark Dow Jones Industrial Average plunged about 425 points. Shares of India’s largest telecom company Bharti Airtel and country’s third-largest IT company Wipro emerged as the top gainers among the components of BSE Sensex on Wednesday.
The benchmark Sensex fell 100.33 points to a low of 34,516.31 whereas NSE Nifty 35.4 points to a day’s low of 10,578.95 on Wednesday. Indian equities witnessed a spike in the volatility ahead of the derivatives expiry for the April series. The volatility indicator on NSE, India Vix, edged up 11.94% to 13.315 on Wednesday.
The stock of Bharti Airtel jumped 3.35% to a day’s top of Rs 419.7 after the telecom major proposed to create the largest tower company in the world outside China by the number of towers. “The combination of Bharti Infratel and Indus Towers by way of merger will create a pan-India tower company, with over 163,000 towers, operating across all 22 telecom service areas in India,” Bharti Airtel said in a statement. “The combined company, which will fully own the respective businesses of Bharti Infratel and Indus Towers, will change its name to Indus Towers Limited and will continue to be listed on the
Indian Stock Exchanges,’ Bharti Airtel said further.
Shares of Wipro gained over 2% to Rs 293.95 ahead of the Q4 earnings release due later today. Other major gainers were TCS, Adani Ports and Infosys while shares of NTPC, ONGC, Asian Paints, Kotak Mahindra Bank, Maruti Suzuki, Dr Reddy’s declined up to 1.5%.
Earlier yesterday, Bharti Airtel posted the lowest quarterly net profit in at least 14 years following the unusual competition from the disruptive telecom player Reliance Jio Infocomm Ltd. Airtel said its consolidated net profit dropped 78% to Rs 82.9 crore in the January-March period of the financial year 2017-2018. Bharti Airtel has a net profit of Rs 373.4 crore in the corresponding period of the previous fiscal. This was the eighth consecutive drop in quarterly profit and the smallest since April-June 2004.
Shares Reliance Naval and Engineering extended losses on Wednesday as worries seemed to have escalated over the company after auditors of the firm raised doubts about the company’s ability to “continue as a going concern”. The stock of Reliance Naval and Engineering shed 4.27% to a day’s low of Rs 22.4. In its notes to the company’s 2017-18 earnings statement, auditors Pathak H.D. & Associates listed cash losses, erosion of network, loans being called back by secured lenders, current liabilities being substantially higher than assets and winding up petitions being filed by few operating creditors to raise its doubts.
Shares if Zensar Technologies plunged 1.2% to Rs 1141 even as the mid-sized IT company reported a multifold surge in the consolidated net profit to Rs 72.65 crore for the quarter ended 31 March 2018. Zensar posted a consolidated net profit of Rs 10.37 crore in the January-March period a year ago.
Wall Street dropped sharply on Tuesday as warnings by bellwether companies of higher costs reverberated as the benchmark US 10-year Treasury yield pierced the 3 percent level for the first time in four years, Reuters said in a report.The S&P 500 is down 1.5 percent year-to-date. The Dow Jones Industrial Average fell 424.56 points or 1.74% to 24,024.13, the S&P 500 lost 35.73 points or 1.34% to 2,634.56 and the Nasdaq Composite dropped 121.25 points or 1.7% to 7,007.35.