Sensex, Nifty trade in red; Tata Motors touch new low
The 31-scrip index was trading at 31,685.30 down over 112 points or 0.35%, while the 51-scrip index tumbled by 33 points or 0.33% trading at 9,875.05.
- Sensex, Nifty at three-week low
- Sebi stops trading of 331 suspected shell companies'
- Tata Motors touch 52-week low post Q1 result
Sensex and Nifty opened in red for the fourth consecutive day after market regulator Sebi asked BSE and NSE to halt trading in 331 listed entities who were suspected to be shell companies.
At 0920 hours, Sensex was trading at 31,685.30 down over 112 points or 0.35%, while Nifty 50 tumbled by 33 points or 0.33% trading at 9,875.05.
Analysts at Motilal Oswal said, “Indian markets remained in correction mode. Poor results, geopolitical issues and unwinding in mid cap stocks impacted markets. Flows from DIIs continued to be positive while FIIs were net sellers.”
On Nifty, analysts at IIFL said, “Nifty now finds support around 9845 while 9950 will act as resistance on the upside. Bank Nifty finds support around 24000 while 24650 will act as resistance on the upside.”
On August 07, 2017, the Securities Exchange and Board of India (Sebi) asked stock exchanges to halt trading in 331 suspected shell companies for the month of August.
NSE has started collecting information about 48 firms, that are listed on its platform, out of the 331 suspected shell companies referred by markets regulator.
Majority of stocks were trading either flat or negative except Dr Reddy's Laboratories which took lead by trading at Rs 2,074 per piece up 1.34%. Followed by Lupin (Rs 957.90 per piece), Infosys (Rs 975 per piece), Wipro (Rs 287.40 per piece) and Tata Steel (Rs 606.25 per piece) trading positive in the range of 0.20% - 0.60%.
Despite reporting 42% year-on-year increase in its Q1FY18 net profit, Tata Motors touched a 52-week low of Rs 393.25 per piece. On BSE, the stock was trading at Rs 395.60 per piece down by Rs 22 or 5.07%.
Tata Motors reported consolidated net profit of Rs 3,200 crore in Q1, compared to Rs 2,260 crore in the corresponding period of the previous year. However, consolidated net revenue saw decline of 10% year-on-year to Rs 58,651 crore due to lower wholsale volumes.
Other losers on BSE were Adani Ports at Rs 392.05 per piece (1.23%), ONGC at Rs 163.65 per piece (1.15%), Bajaj Auto at Rs 2,804.80 per piece (1%) and Power Grid at Rs 219.80 per piece (0.95%).
While rupee surged over 0.150 paisa or 0.23% as against US dollar trading at 64.055.
Asian stocks turned lower on Thursday with Japan's Nikkei 225 was trading at 19,703.05 down 0.18%, while Hong Kong's Hang Seng at 27,328.60 lower by 1.54% and China's Shanghai SE Composite Index at 3,240.69 below 1.06%.
A Reuters report said, investors fretted about the latest flare-up of tensions between the United States and North Korea, sending Seoul shares skidding to two-month lows even as the previous day`s rush into safe-haven assets appeared to slow.