Domestic stocks reversed a four-day rising trend on Thursday, due to profit booking. Sentiment was hit by negative global cues and an overnight rise in oil prices. Investors turned cautious ahead of the September - December 2018 quarterly earnings from Indian companies.
Indices traded with small losses in early trade. Benchmarks firmed up and hit fresh intraday high in morning trade. Indices reversed trend and traded lower in mid-morning trade. Indices extended losses in afternoon trade and hit fresh intraday low in mid-afternoon trade.
The barometer index, the S&P BSE Sensex, fell 106.41 points or 0.29% to settle at 36,106.50. The index hit high of 36,269.31 and low of 36,070.76 in intraday trade.
The Nifty 50 index fell 33.55 points or 0.31% to settle at 10,821.60. The index hit high of 10,859.35 and low of 10,801.80 in intraday trade.
Among secondary barometers, the BSE Mid-Cap index rose 0.49%. The BSE Small-Cap index rose 0.19%.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1227 shares rose and 1373 shares fell. A total of 154 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 0.81%), the S&P BSE Bankex (down 0.75%), the S&P BSE Finance index (down 0.44%) underperformed the Sensex. The S&P BSE Consumer Durables index (up 0.71%), the S&P BSE Capital Goods index (up 0.38%), the S&P BSE Power index (up 0.31%) outperformed the Sensex.
IndusInd Bank (down 2.36%), Kotak Mahindra Bank (down 1.42%), ONGC (down 1.37%), Axis Bank (down 1.05%), HDFC (down 0.89%) and Hero MotoCorp (down 0.86%) were the major Sensex losers.
Tata Motors (up 1.34), NTPC (up 1.13%), Mahindra & Mahindra (up 0.99%), Bajaj Auto (up 0.86%) and Bharti Airtel (up 0.63%) were the major Sensex gainers.
IT major TCS rose 0.02%. The company announces its Q3 December 2018 result today, 10 January 2019.
IT major Infosys rose 0.58%. Infosys will announce Q3 December 2018 results on Friday, 11 January 2019. The company announced that its board will consider proposals, including but not limited to, buyback of fully paid-up equity shares of the company, payment of special dividend, for implementation of the Capital Allocation Policy at its meeting to be held on 11 January 2019. The outcome of the board meeting will be disseminated to the stock exchanges after conclusion of the board meeting on January 11, 2019. The announcement was made after market hours on 8 January 2019.
Maruti Suzuki India fell 1.07%. The company announced during trading hours today, 10 January 2019, a price change for select models owing to increase in commodity prices and foreign exchange rates etc. The price change varies across models and ranges upto Rs 10,000 (Ex-Showroom - Delhi). The new prices are effective from 10 January 2019.
Ashok Leyland rose 0.64%. The company confirmed that it bagged orders from IRT (Institute of Road Transport, Chennai), UPSRTC (Uttar Pradesh State Roadways Transport Corporation) and CTU (Chandigarh Transport Undertaking) for 2,580 buses. All these buses can be delivered before March 2019. The announcement was made after market hours yesterday, 9 January 2019.
Delta Corp lost 1.55%. The company's consolidated net profit rose 12.94% to Rs 50.53 crore on 24.23% rise in total income to Rs 211.32 crore in Q3 December 2018 over Q3 December 2017. The announcement was made after market hours yesterday, 9 January 2019.
AGC Networks rose 9.98%. The company announced that its wholly-owned subsidiary has completed the acquisition of Black Box Corporation, a leading digital solutions provider in the US. The combination with Black Box will substantially strengthen AGC's presence and offerings to 25+ countries across six continents. The announcement was made after market hours yesterday, 9 January 2019.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.3950, compared with closing of 70.46 during the previous trading session.
In the global commodities markets, Brent for March 2019 settlement was down 13 cents at $61.31 a barrel. The contract jumped $2.72 a barrel, or 4.63% to settle at $61.44 a barrel during the previous trading session as US-China trade talks raised hopes of easing tensions between the world's top two economies.
Overseas, European shares were trading lower as investors focused on trade war developments and monetary policy in the US. Asian shares ended on a mixed note. China's Producer Price Index (PPI), which measures price increases before they reach the consumer, in December rose 0.9% on-year. That compares with the a 2.7% year-on-year increase in November. China's December consumer inflation (CPI), a gauge of prices for goods and services, rose 1.9% on year. The CPI rose 2.2% in November.
US stocks closed higher for a fourth session Wednesday, on reports that the US and China have narrowed differences over trade. Minutes from the December's Federal Open Market Committee meeting, which indicated caution on future interest rate hikes, also helped to buoy sentiment.
The US and China wrapped up their first face-to-face trade negotiations since a temporary tariff truce was declared last month. In a statement released after talks concluded, the US trade representative's office said officials had discussed making any deal subject to ongoing verification and effective enforcement. The statement added that negotiators had conveyed President Trump's commitment to addressing our persistent trade deficit and to resolving structural issues in order to improve trade between our countries.
China's commerce ministry said on Thursday trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each others' concerns.
Meanwhile, the release of Fed minutes revealed that some central-bank officials hard reservations about an interest-rate increase last month due to market volatility, though policy makers voted unanimously in favor of the move. They also recommended the Fed should be patient and stressed that a relatively limited amount of additional tightening is appropriate.