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Sensex drops 308 pts, breadth weak

Published on Aug 03, 2022 11:33

The headline equity indices declined further and hit the day`s low in the mid-morning trade. The Nifty traded below the 17,250 mark. Auto stocks witnessed profit booking after gaining in the past five sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 307.55 points or 0.53% to 57,828.81. The Nifty 50 index declined 107.30 points or 0.62% to 17,238.15.

In the broader market, the S&P BSE Mid-Cap index lost 1.13% while the S&P BSE Small-Cap index shed 0.71%.

The market breadth was weak. On the BSE, 1,082 shares rose and 2,046 shares fell. A total of 145 shares were unchanged.

The market selloff came amidst geopolitical tensions between the U.S. and China. Investors kept a close eye on U.S. House Speaker Nancy Pelosi`s movement as she visited Taiwan the much anticipated stop on the trip that has angered China.

Earnings Today:

Lupin (down 0.83%), Adani Power (down 0.70%), InterGlobe Aviation (down 0.60%), Vodafone Idea (down 3.29%), Godrej Consumer Products (down 2.08%), Aditya Birla Capital (down 1.77%), Adani Transmission (up 1.86%), Adani Wilmar (down 3.23%), BASF India (up 3.19%), Birlasoft (up 2.82%), Chambal Fertilisers & Chemicals (down 0.68%), Devyani International (down 2.40%), Firstsource Solutions (down 1.51%), Gujarat Gas (down 1.25%), Inox Leisure (down 1.91%), KEC International (up 0.33%), Paras Defence and Space Technologies (down 1.39%), PI Industries (down 0.69%), Sandhar Technologies (down 1.64%), Satin Creditcare Network (up 1.59%), Tata Coffee (down 0.69%), and Zuari Agro Chemicals (down 0.16%) are among the companies that will announce their results for the quarter ended 30 June 2022 later in the day.

India Services PMI:

The seasonally adjusted S&P Global India Services PMI Business Activity Index stood at 55.5 in July, from from 59.2 in June, which was the highest figure in over 11 years. The latest reading indicated the slowest rate of growth in four months.

Meanwhile, the S&P Global India Composite PMI Output Index fell to 56.6 from 58.2 in June, highlighting the slowest increase since March. Manufacturing led the upturn with the quickest rise in production since last November, while growth of services activity eased to the weakest in four months.

Buzzing Index:

The Nifty Auto index declined 1.82% to 12,786.95. The index witnessed profit booking after gainnig 6.09% in five trading sessions.

Bharat Forge (down 4.21%), Bosch (down 2.49%), Maruti Suzuki India (down 2.26%), Balkrishna Industries (down 1.77%), Tata Motors (down 1.7%), TVS Motor Company (down 1.64%), Mahindra & Mahindra (down 1.55%), Ashok Leyland (down 1.45%), Eicher Motors (down 0.74%) and Bajaj Auto (down 0.68%), edged lower.

On the other hand, Tube Investments of India (up 0.16%) and Escorts Kubota (up 0.09%) advanced.

Bosch declined 2.49%. The technology supplier reported 9.4% rise in consolidated net profit to Rs 334 crore on a 45.1% increase in total revenue from operations to Rs 3,544 crore in Q1 FY 2022-23 over Q1 FY 2021-22. The company said that the revenue was at al all-time high is due to the low base last year and the easing of supply-chain bottlenecks, especially toward the end of the quarter, in conjunction with a positive production in the tractor segment.

Stocks in Spotlight:

Deepak Nitrite shed 0.16% after the company`s consolidated net profit declined 22.5% to Rs 234.62 crore despite of a 34.8% rise in net sales to Rs 2,057.99 crore in Q1 FY23 over Q1 FY22. Among segmental front, revenue from phenolics business rose 33.61% to Rs 1,334.9 crore and advanced intermediates segment revenue rose 38.45% to Rs 729.98 crore in Q1 FY23 over Q1 FY22.

Axis Bank declined 0.11%. The private lender said that it will acquire 8,921 equity shares of face value of Rs 10 each, representing 5.09% stake, of Equentia SCF Technologies (CredAble) for a total cash consideration of Rs 55 crore. The bank expects to complete the transaction by 30 September 2022.

Siemens slipped 3.73%. The industrial manufacturing company`s standalone net profit jumped 85% to Rs 296 crore in the quarter ended 30 June 2022 from Rs 160 crore recorded in the quarter ended 30 June 2021. For the third quarter of Financial Year 2022 ended 30 June 2022, revenue from continuing operations of Rs 3,865 crore, a 51% increase over the same quarter in the preceding year.

Global Markets:

Asian stocks are mostly higher on Wednesday as geopolitical tensions between the U.S. and China intensified over U.S. House Speaker Nancy Pelosi`s visit to Taiwan. Pelosi arrived in Taiwan on Tuesday night local time amid warnings from Beijing.

In economic news, China`s services activity grew at the fastest rate in 15 months in July as easing COVID curbs boosted consumer confidence, a private-sector survey showed on Wednesday. China`s Caixin Services Purchasing Managers` Index for July came in at 55.5, up from 54.5 in June. It`s also the highest since April 2021.

Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after US House of Representatives Speaker Nancy Pelosi visited Taiwan.

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