Nifty, Sensex under Pressure Again Due to Global Trends – Wednesday closing report
We had mentioned in Monday’s closing report that Nifty, Sensex might be headed higher. The major indices of the Indian stock markets suffered a correction on Wednesday, as premarket US futures traded deeply in the negative and the Hong Kong market fell more than 700 points, down 2.77%. The rupee fell sharply and there was a slowdown in the manufacturing PMI data. On the NSE, there were 549 advances, 1,134 declines and 381 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Most sectoral indices traded in the negative, led by auto, metal and banking stocks. The S&P BSE auto index lost 534.70 points on weak December auto sale figures. Also, the decline in the Nikkei Manufacturing Purchasing Managers' Index released during the day subdued the market sentiments. The index declined to 53.2 in December, from 54 in November.
The Indian currency slumped 45 paise on Tuesday to trade at 69.89 per dollar (around 1.20 p.m.), against the previous close of 69.45 per dollar.
Automobile major Maruti Suzuki India reported a decline of 1.3% in its total sales including exports for December 2018. According to the company, a total of 128,338 units were sold last month, compared to 130,066 units' off-take recorded during the corresponding period of the last financial year. The total sales were dragged down by heavy decline in export. It slumped 36.4% to 6,859 vehicles. However, the company's domestic sales rose 1.8% on a year-on-year basis to 121,479 units in December. The company's domestic passenger vehicles sales was up 1% to 1,19,804 units, while sales of light commercial vehicles in the country rose 130.7 per cent to 1,675 units. The company’s shares closed at Rs7,269.00, down 2.78% on the NSE.
Automobile major Tata Motors reported a 7.7% decline in domestic sales in December on a year-on-year basis. The company sold 50,440 units in the country last month, against 54,627 units in December 2017, Tata Motors said in a statement. "During the month, consumer sentiment remained slightly subdued as the customer was still waiting to see a sustained level of improvement in factors like fuel prices and profitability before deciding to further invest in new vehicles," it quoted Girish Wagh, President, Commercial Vehicles Business, Tata Motors, as saying. In the commercial vehicle segment, the company sold 36,180 units during the period under review, 10.6% lower than 40,447 units sold during the corresponding period of financial year 2017-18. "In December 2018, liquidity crisis in the industry, higher interest rates and rising fuel costs continued to impact the commercial vehicle sales, with M&HCV and I&LCV segment witnessing a decline while the passenger vehicle business bounced back," said the statement. Sale of passenger vehicles rose marginally, by 0.6% to 14,260 units "due to good demand for new generation passenger vehicles", the company said. On exports, Tata Motors recorded a 36.5% fall in sales to 3,999 units as against 6,293 units in December 2017. Tata Motors shares closed at Rs168.40, down 2.91% on the NSE.
Automobile major Mahindra and Mahindra (M&M) reported a meagre 1% rise in its total vehicle sales for December 2018, owing to tight liquidity and low buying sentiment in the domestic market. The company’s shares closed at Rs740.55, down 4.24% on the NSE.
Petrol prices fell nearly 20 paise to Rs68.65 a litre in Delhi on Tuesday to touch the lowest levels in over a year across the four metros.
S & P BSE Auto Index closed at 20,103.45, down 3.01% on the BSE.
A last hour pick-up in banking and realty stocks, along with positive global markets, buoyed the key Indian equity indices on Tuesday. The day's trade saw 30-scrip Sensex gaining over 180 points to regain the 36,000 points-mark. However, the two key indices traded mostly in the red throughout the day's session, but a sharp recovery in the last hour changed the overall scenario. Index-wise, the S&P BSE Sensex settled 186.24 points or 0.52% higher at 36,254.57 points after touching an intra-day high of 36,284.04 and a low of 35,888.62. The NSE Nifty50 closed at 10,910.10 points up 47.55 points or 0.44%. Expectations of weak monthly auto sales and slower industrial November data, concerned the market, observed market analysts. Apart from realty sector, finance stocks also edged higher, gaining close to 1%.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: