Capital goods stocks decline
by Admin |03/05/2018
Sustained selling pressure in index pivotals kept the key benchmark indices subdued in mid-morning trade. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 119.32 points or 0.34% at 35,057.10. The Nifty 50 index was down 55.80 points or 0.52% at 10,662.25. The market breadth, indicating the overall health of the market, was weak. Capital goods stocks edged lower. Negative Asian stocks weighed on the domestic bourses.
Domestic stocks were trading with small losses in early trade on negative Asian stocks. Key benchmark indices extended fall in morning trade.
The S&P BSE Mid-Cap index was down 1.32%. The S&P BSE Small-Cap index was down 1.15%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,749 shares fell and 578 shares rose. A total of 96 shares were unchanged.
Axis Bank (up 1.73%), ICICI Bank (up 1.19%) and HDFC (up 0.81%) edged higher from the Sensex pack.
Capital goods stocks edged lower. ABB India (down 2.82%), Bharat Heavy Electricals (Bhel) (down 0.86%), BEML (down 1.9%), Bharat Electronics (down 2.07%), L&T (down 1.37%), Punj Lloyd (down 1.78%) and Thermax (down 1.26%) declined.
Siemens dropped 8.12%. The company's net profit rose 18% to Rs 219.70 crore on 10.6% increase in net sales to Rs 3163.10 crore in Q2 March 2018 over Q2 March 2017. The result was announced after market hours yesterday, 2 May 2018.
Sical Logistics rose 1.29% after the company said it received a letter of acceptance from Northern Coalfields for excavation of overburden from Amlohri OCP. The announcement was made after market hours yesterday, 2 May 2018.
Sical Logistics said it was awarded a letter of acceptance (LoA) by Northern Coalfields for excavation of overburden of first dig [solid] by mechanical means and allied transportation activities at Amlohri opencast project (OCP) for a contract price of Rs 1345 crore for excavation of 145 million bank cubic metre (BCM) over a period of 51 months. The company considers this to be one among the prestigious contracts.
Overseas, Asian stocks fell after the Federal Reserve reiterated plans to continue raising rates gradually amid firming inflation. Japan markets are closed for a four-day holiday weekend. US stocks fell yesterday, 2 May 2018 as investors assessed the US Federal Reserve's signal that it's in no rush to raise rates even as inflation rises to its target.
The Federal Reserve on Wednesday kept a key US interest rate steady, saying that while inflation has moved higher, it's likely to run near the central bank's 2% target in the coming months. The central bank maintained its fed funds at a range of 1.5%-1.75%.
In its statement, the Fed noted the latest readings that show both overall and core inflation have moved close to the central bank's 2% goal. Fed officials were split between whether to raise rates three or four times this year.