Key equity indices traded with modest losses in afternoon trade. At 13:23 IST, the barometer index, the S&P BSE Sensex, was down 168.24 points or 0.46% at 36,378.24. The Nifty 50 index was down 55.55 points or 0.51% at 10,888.05.
Domestic stocks drifted lower in early trade as most Asian stocks declined. Key benchmark indices extended losses and hit intraday low in morning trade. Stocks cut losses in mid-morning trade. Indices traded near day's low in afternoon trade.
Broader market witnessed selling pressure. The S&P BSE Mid-Cap index was down 1.33%. The S&P BSE Small-Cap index was down 1.38%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 710 shares rose and 1617 shares fell. A total of 137 shares were unchanged.
TCS (up 0.98%), Kotak Mahindra Bank (up 0.96%), Infosys (up 0.89%), HCL Technologies (up 0.41%) and HDFC Bank (up 0.31%), were the major Sensex gainers.
Mahindra & Mahindra (down 3.21%), ONGC (down 2.61%), Bajaj Finance (down 2.04%), Hero MotoCorp (down 1.79%) and NTPC (down 1.48%), were the major Sensex losers.
Tata Steel rose 1.39% after consolidated net profit rose 54.33% to Rs 1753.07 crore on 22.33% rise in net sales to Rs 40457.11 crore in Q3 December 2018 over Q3 December 2017. Consolidated adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 27% to Rs 7,225 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours on Friday, 8 February 2019.
Dr Reddy's Laboratories dropped 5.81%. Dr Reddy's Laboratories announced that the audit of its formulations manufacturing plant - 3 at Bachupally, Hyderabad by the US Food and Drug Administration (USFDA) completed on 8 February 2019. The company has been issued a Form 483 with 11 observations. The company said it will address them comprehensively within the stipulated timeline. The announcement was made after market hours on Friday, 8 February 2019.
Reliance Industries (RIL) fell 1.57%. RIL announced that Reliance Brands (RBL), a subsidiary of the company, has acquired a further stake of 2.5% in Future101 Design (Future101) on 7 February 2019, for a consideration of Rs. 1.99 crore, taking its total stake in Future101 to 15%.
Reliance Retail Ventures (RRVL), a subsidiary of the company has acquired a further stake of 9.44% on 7 February 2019 in Genesis Colors (GCL), for a consideration of Rs 45 crore taking its total stake in GCL to 29.07% on the enhanced capital of GCL. Consequently, the stake of RBL in GCL shall be 43.66% and the aggregate equity shareholding of RRVL and RBL in GCL stands at 72.73%.
The aforesaid acquisitions will help the company to strengthen its footage in the retail industry and support its long term strategy to enhance its value in the retail industry. No regulatory approvals were required for the said acquisition of shares. The investment does not fall within related party transaction for the Company and none of RIL's promoter / promoter group / group companies have interest in the above entities. The announcement was made after market hours on Friday, 8 February 2019.
Bharti Airtel was down 0.33%. The company announced the signing of an agreement by its subsidiary, Airtel Networks Kenya (Airtel Kenya) with Telkom Kenya (Telkom Kenya) for merging their respective mobile, enterprise and carrier services businesses in Kenya to operate as - 'Airtel- Telkom'. The finalisation and closure of the transaction is subject to approval by the relevant authorities.
As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence. The entity will invest in networks to further accelerate roll out of future technologies. The enterprise and carrier services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers - including both large corporations and SMEs who would have access to a diverse portfolio of world-class solutions. The announcement was made after market hours on Friday, 8 February 2019.
Bharat Petroleum Corporation (BPCL) was down 0.73%. BPCL's net profit declined 76.90% to Rs 495.14 crore on 30.59% rise in net sales to Rs 79168.84 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours on Friday, 8 February 2019.
Overseas, Asian stocks were mixed on Monday as concerns over global growth and US-China trade talks kept investors cautious. Markets in China and Taiwan, reopened after a weeklong Lunar New Year break. Japanese markets were closed for a holiday.
In Europe, with Brexit just 47 days away, the British government has reportedly asked lawmakers on Sunday to give Prime Minister Theresa May more time to rework her divorce deal with the European Union. Communities Secretary James Brokenshire said Parliament would get to pass judgment on May's Brexit plan no later than February 27. Britain is due to leave the EU on March 29, but Parliament has rejected May's divorce bill, leaving the prime minister to seek changes from the EU.
US stocks bounced off intraday lows to close mostly higher Friday as late afternoon buying offset pressure from lingering fears over U.S-China trade tensions.
US President Donald Trump confirmed reports that he had no plans to meet with Chinese President Xi Jinping before a March 1 trade-deal deadline. However, the US is reportedly likely to keep tariffs at 10% rather than raise them to 25% as scheduled.