Indian markets fell sharply in the opening trade as the market participants stay cautious ahead of the major corporate earnings lined up for today and the ongoing tensions between the United States and North Korea.
Indian markets fell sharply in the opening trade as the market participants stay cautious ahead of the major corporate earnings lined up for today and the ongoing tensions between the United States and North Korea. Meanwhile, Asian stocks were supported after seeing Wall Street shares closed barely lower overnight, trimming losses, as investors appeared to brush off geopolitical concerns. BSE Sensex opened 47 points lower at 31,750.73 points and NSE Nifty declined 36 points to open below 9,900 points on Wednesday. The sentiments remain dull after the SEBI order against 331 suspected shell entities listed on exchanges.
Within minutes of trading both the benchmark indices further tripped with the benchmark Sensex losing over 150 points to the mark a low of 31,630.2 points while the broader Nifty lost 57 points to the day’s low of 9,850.95 points. Shares of Tata Motors tumbled over 5% to the day’s low of Rs 392.9 even after the automaker reported 41.54% jump in net profit to Rs 3,199.93 crore for the April-June quarter of the current fiscal, benefiting from one-time gain relating to changes made to JLR pension plans. Eicher Motors fell 1.83% after the Royal Enfield maker yesterday reported a 22.14% rise in consolidated net profit at Rs 459.62 crore for the April-June quarter.
The major drag on the benchmark Sensex was brought by the shares of Tata Motors, ICICI Bank, L&T, Maruti Suzuki and ITC. Most of the sectoral indices were trading in negative territory with losses up to 1.37% except pharma index which was trading higher. Only 14 out of 51 listed scrips on NSE were trading up, shares of Aurobindo Pharma (up 5.57%), Dr Reddy’s Laboratories (2.13%), Sun Pharma (up 2.12%), Lupin (up 1.47%) and Cipla (up 1.09%) were the major gainers on the broader Nifty 50 while Tata Motors DVR shares tanked over 6% to the day’s low of Rs 225.7.
Stocks of GAIL, Bharat Forge, Bharat Heavy Electricals, Motherson Sumi Systems, United Breweries, Adani Power, Adani Transmission, Allcargo Logistics, Balaji Telefilms, Bombay Dyeing, Dishman Pharma, Kajaria Ceramics, Manappuram Finance, Page Industries, Petronet LNG, Power Finance Corporation, SpiceJet, Symphony, Coffee Day, Deccan Cements, Deepak Fertilizers, Gujarat State Petronet, Laurus Labs, Manpasand Beverages, Shipping Corporation Of India, Zydus Wellness will be in focus today ahead of their Q1 earnings.
The domestic stock market ended in negative territory for the third consecutive day on Wednesday, with the Sensex losing over 500 points in last three sessions as pharma stocks tanked following weak first-quarter earnings reported by most of the companies. The pessimism gathered on the escalating tension between the US and North Korea after North Korea said it is considering plans for a missile strike on the US Pacific territory of Guam. Over all sentiments were also muted following the Indian market watchdog SEBI order on Monday which has clamped down 331 suspected shell companies listed on exchanges.
US stocks clawed back losses late on Wednesday as investors appeared to brush off geopolitical concerns after falling in the wake of U.S. President Donald Trump’s “fire and fury” warning to North Korea. After a dip of as much as 0.52% earlier in the day, Wall Street’s three major indexes bounced off intraday lows. The Dow Jones Industrial Average fell 0.17%, to end at 22,048.7 points, the S&P 500 lost 0.04%, to 2,474.02 points and the Nasdaq Composite dropped 0.28%, to 6,352.33 points.