Sensex skids 318 pts while weak wins weigh; Yes Bank sinks 13 pcs
Mumbai, July 18 () Breaking its three-day growing streak, the benchmark BSE Sensex stock index slumped 318 points on Thursday as weak corporate profits silenced expectations of a rapid recovery in the economic recovery.
Weak global markets and a depreciation rupee further weakened the appetite of investors, traders said.
The 30-share Sensex, which opened with the back foot, remained moderate throughout the session and finally closed at 38,897.46, a decline of 318.18 points or 0.81 percent.
Similarly, the wider Nifty NSE cracked below the 11,600 mark, ending at 90.60 points or 0.78 percent at 11,596.90.
Yes, Bank was the biggest loser in the Sensex package, down 12.85 percent, after the company reported a massive fall of 92.44 percent in consolidated net profit for the June quarter.
ONGC, Tata Motors, Mu0026M, Maruti, Vedanta, Bajaj Auto, TCS, SBI and HCL Tech lost up to 4.24 percent.
On the other hand, HDFC won the most, with an increase of 2.26 percent, followed by Kotak Bank, HDFC Bank and ITC, which rose to 0.31 percent.
Indian stocks were sold with disappointing profits and concerns about the trade war between the United States and China. In particular, South Korea and Indonesia cut rates and there are likely to be more cuts in India and emerging markets.
Indian markets lost almost a percentage dragged by weak macros worldwide and the low yield of gains in the field. All indices in the sector ended in red, with power supply units, metals and automobiles having the worst performance.
However, foreign investors have been investing heavily in Indian debt markets, as yields remain at a high premium to those offered in developed markets. Foreign investors hungry for yields have bought Indian debt worth almost 6,000 million rupees since the Budget was presented this month, said Sunil Sharma, Director of Investments, Sanctum Wealth Management.
All sectoral indexes ended in red, with auto indexes, metals, energy, oil and gas, industrial, energy, consumer goods, consumer goods, consumer goods and real estate indices that shot up to 2.65% .
The broader medium and small-scale BSE index sank to 1.23 percent.
The largest producer of consumer goods Colgate-Palmolive India Ltd reported a 10.76 percent decline in net profits on Rs 169.11 in the June quarter due to lower growth in rural markets on Thursday.
In a report, the data analysis firm Nielsen said that the remaining consumer goods sector in India will experience a slowdown in 2019, affected by a drop in demand, particularly in rural markets.
IT firm Mindtree posted a 41.4 percent drop in first-quarter net profit on Wednesday, while Wipro's earnings rose 12.5 percent, although revenue growth remained subdued.
On the global front, stock markets struggled because the prolonged trade conflict between the United States and China showed no signs of relaxation, while investors digested a large amount of corporate results.
In the rest of Asia, the Shanghai Composite Index ended down 1.04%, the Hang Seng fell 0.46%, the Kospi 0.31% and the Nikkei 1.97%.
Stock exchanges in Europe were also marketed in red in their respective first sessions.
Meanwhile, the Indian rupee depreciated 12 paise to 68.95 against the US dollar (intraday). Crude oil futures for Brent crude rose 0.33% to USD 63.87 per barrel. ANS ABM ABM