Sensex and Nifty opened marginally lower on Friday as most of the Asian shares slipped in the early trade today on uncertainty about US tax reforms. BSE Sensex fell 15.18 points to open at 33,235.75 whereas NSE Nifty lost 4.6 points to start at 10,304.35. Investors are keenly awaiting the second-quarter earnings of biggies such as State Bank of India and Bharat Petroleum Corporation which are likely to guide the markets ahead. Within minutes of trading, the key indices extended the losses and dropped further with the benchmark Sensex losing as much as 113.5 points to hit the day’s low of 33,137.43 whereas the broader Nifty tripped 38.95 points to mark the day’s low of 10,270.
Shares of SBI was trading 0.43% higher at Rs 315.1 while M&M edged down 0.59% to Rs 1,353.45 ahead of their respective Q2 results today. Shares of Tata Motors, Reliance Industries, Asian Paints, Axis Bank, TCS, and Adani Ports lost up to 1.5% while L&T, ONGC, SBI, HUL and ICICI Bank are trading slightly higher, advanced up to 0.9%. The major drag was provided by the heavyweight shares of RIL, HDFC, Tata Motors, TCS, and Axis Bank. Collectively these five stocks washed off about 100 points while L&T, ICICI Bank, and ITC helped to trim losses.
Among the major companies Bosch, DLF, Balaji Telefilms, Bank of India, Bank of Maharashtra, Allahabad Bank, Dena Bank, Alkem Laboratories, Bharat Earth Movers, Dredging Corporation of India, Motherson Sumi Systems, MRF, Muthoot Capital Services, Nestle India, Oil India, Oracle Financial Services Software, Pfizer, Sobha, Sun TV Network, Cochin Shipyard, Jain Irrigation, NHPC and Suzlon are scheduled to announce their second-quarter results.
US stocks ended lower Thursday as investors turned their attention to a US Senate Republican plan that would delay expected corporate tax cuts. “The S&P 500 is trading at 18 times expected earnings, expensive compared with its 10-year average of 14.3, according to Thomson Reuters Datastream. Cutting corporate taxes would boost earnings and make stocks relatively less expensive,” Reuters said in a report. The Dow Jones Industrial Average lost 0.43% to end at 23,461.94, while the S&P 500 declined 0.38% to 2,584.62. The Nasdaq Composite dropped 0.58% to 6,750.05.