The market ended with steep losses amid broad based selling pressure. The Nifty ended below 11,000 mark after slipping below that level in morning trade. Negative leads from Asian markets and overnight slide on the Wall Street spoiled investors sentiment. Metal and auto shares witnessed major selling pressure.
The Sensex fell 424.61 points or 1.15% to settle at 36,546.48, its lowest closing level since 1 February 2019. The index fell 85.51 points, or 0.23% at the day's high of 36,885.58. The index fell 490.47 points, or 1.33% at the day's low of 36,480.62.
The Nifty 50 index fell 125.80 points or 1.14% to settle at 10,943.60, its lowest closing level since 5 February 2019. The index fell 28.20 points, or 0.25% at the day's high of 11,041.20. The index fell 143.95 points, or 1.30% at the day's low of 10,925.45.
The market opened lower and declined further as the session progressed. Indices turned range bound in early afternoon trade. Indices cut losses soon after hitting fresh intraday low in afternoon trade. Benchmarks slumped in late trade as selling pressure intensified.
Selling was broad based. Among secondary barometers, the BSE Mid-Cap index fell 1.40%. The BSE Small-Cap index fell 0.89%.
The market breadth, indicating the overall health of the market, was weak. On BSE, 952 shares rose and 1574 shares fell. A total of 125 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 3.42%), the S&P BSE Auto index (down 3.37%), the S&P BSE Industrials index (down 2.56%) underperformed the Sensex. The S&P BSE Realty index (up 1.07%), the S&P BSE Telecom index (up 1.74%), the S&P BSE Healthcare index (down 0.6%) outperformed the Sensex.
NTPC (down 2.94%), ONGC (down 2.94%), Larsen & Toubro (down 2.92%), Coal India (down 2.54%), Power Grid Corporation of India (down 2.33%) and Axis Bank (down 1.52%), were the major Sensex losers.
Kotak Mahindra Bank (up 0.95%), Bharti Airtel (up 0.85%), HCL Technologies (up 0.46%), HDFC Bank (up 0.29%) and Bajaj Finance (up 0.25%), were the major Sensex gainers.
Auto shares tumbled. Eicher Motors (down 4.49%), Escorts (down 3.82%), TVS Motor Company (down 2.36%), Maruti Suzuki India (down 1.9%), Ashok Leyland (down 1.03%) and Bajaj Auto (down 0.44%), edged lower. Hero MotoCorp was up 0.15%.
Tata Motors lost 17.28% after the company reported consolidated net loss of Rs 26992.54 crore in Q3 December 2018 as compared to net profit of Rs 1198.63 crore in Q3 December 2017. The result was announced after market hours yesterday, 7 February 2019.
Tata Motors consolidated total income rose 4.37% to Rs 77582.71 crore in Q3 December 2018 over Q3 December 2017. Tata Motors said that Q3 December 2018 was impacted by an exceptional item of asset impairment of Rs 27838 crore in Jaguar Land Rover (JLR). Weak sales in China and de-stocking impacted JLR performance.
N Chandrasekaran, Chairman commented that Tata Motors domestic business continues the strong momentum and has delivered market share gains as well as profitable growth. In JLR, the market conditions continue to be challenging particularly in China. The company has taken decisive steps to step up competitiveness, reduce the costs and improve the cash flows while continuing to invest in exciting products and leading edge technologies.
In a separate announcement made after market hours yesterday, 7 February 2019, Jaguar Land Rover retail sales in January 2019 were 43,733 vehicles, down 10.9% compared to January last year. Strong sales of E-PACE, IPACE and refreshed Range Rover and Range Rover Sport were more than offset by continuing market weakness in China and the run out of the Range Rover Evoque, ahead of the introduction of the all new Evoque later this quarter.
Mahindra & Mahindra (M&M) fell 2.64% after the company announced Q3 results during trading hours today, 8 February 2019. M&M combined profit from ordinary activities after tax (after EI) rose 7% to Rs 1396 crore in Q3 December 2018 over Q3 December 2018. Combined revenues and other income rose 14% to Rs 13235 crore. Combined operating profit margin (OPM) was reported at 13.2% in Q3 December 2018, lower than 14.7% in Q3 December 2017. The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.
In its outlook M&M said that growth in government final consumption expenditure, buoyed by higher government spending has been supportive and remains the key driver of growth. The interim budget has announced PM-KISAN- an income support scheme for farmers owning up to 2 hectares - about 120 million households - who would receive income support worth about Rs 6000 a year. This should buoy farmer incomes and support rural consumption. Improving credit growth and liquidity conditions should also help give a fillip to growth.
Escalation of trade tensions beyond those already anticipated and tightening of financial conditions are a key source of risk to the outlook. M&M said that potential triggers including a no-deal Brexit and a greater-than envisaged slowdown in China should also be watched.
Metal shares declined. Steel Authority of India (down 7.61%), Vedanta (down 5.75%), Jindal Steel & Power (down 4.37%), JSW Steel (down 3.77%), Hindustan Zinc (down 2.04%), Hindalco Industries (down 1.84%), NMDC (down 1.63%) and Hindustan Copper (down 1.13%), edged lower. National Aluminium Company rose 0.68%.
Tata Steel fell 3.7%. On a consolidated basis, Tata Steel's net profit rose 54.33% to Rs 1,753.07 crore on 23.04% increase in total income to Rs 41431.37 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 7 February 2019.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.45, compared with closing of 71.19 during the previous trading session.
In global commodities markets, Brent crude oil futures edged higher. Brent for April 2019 settlement was up 29 cents at $61.92 a barrel.
Overseas, European shares bounced back from early losses on Friday. Stocks in Asia slipped on Friday amid growing concerns over the trade fight between the US and China. Media reports on Thursday suggested that President Donald Trump is unlikely to meet Chinese leader Xi Jinping before March. As a result, investors are considering whether they will reach an agreement over trade before a self-imposed deadline of March 2. Failing to reach a compromise would mean additional tariffs on Chinese goods straight away.
US stock benchmarks on Thursday finished the session firmly lower as worries about sluggish growth outside of the US and diminishing expectations for a quick resolution to a US-China trade spat, buffeted markets.