Indian benchmark indices showered weaker trends during Thursday’s session after several heavyweights reported below than expectation q3 earnings. BSE Sensex closed 359.64 points, or 0.51 per cent lower at 70,700.67 and Nifty 50 fell 101.35 points, or 0.47 per cent at 21,352.60.
During the early hours of trade, both Sensex and Nifty flickered near flatline amid mixed cues from the Asian and US markets. BSE Sensex opened at 38.21 points, or 0.05 per cent lower at 71,022.10 with NIFTY 50 opening 0.60 points, or 0.00 per cent at 21,454.60.
IT and banking sector stocks showed a weaker trend with the Nifty Bank index closing the trade 0.48 per cent lower. Equity benchmark indices were dragged lower by IT shares after Tech Mahindra reported a massive decline in net profit by 61 per cent to 510.4 crore during Q3FY24. Shares of Tech Mahindra tanked 85.15 points, or 6.05 per cent to 1,332.80.
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Realty and power indices posted a rally a day after India’s largest real estate developer DLF posted a 27 per cent rise in standalone profit to Rs 655.71 crore in the December quarter. Shares of DLF continues to advance over 1 per cent during Thursday’s session.
India’s domestic currency marked its closer 2 paisa higher against the US dollar at 83.11. The rupee opened at a paisa weaker at Rs 83.13 vs Wednesday’s close against the American currency. The US dollar index, which measures the currency against six global peers, remained little changed at 0.08 points, or 0.08 per cent at 102.96.
International oil prices remain elevated on the back of US crude storage withdrawal, continuing geopolitical tension as a coalition of 24 nations continues with their strikes against Houthis and a weaker dollar. US crude stockpiles tumbled by 9.2 million barrels, the Energy Information Administration said. Brent oil futures rose 1.20 points, or 1.50 per cent at $81.25 a barrel while WTI futures remained high by 1.24 points, or 1.65 per cent at $76.31 per barrel.
Asian markets witnessed the heat after below the expectations Tesla results that dragged down auto shares. Japan’s Nikkei ended flat at 9.99 points, or 0.03 per cent at 36,236.47 whereas South Korea’s Kospi 0.65 points, 0.03 per cent 2,470.34. Hong Kong’s Hang Seng reversed losses to gain over 1.5 per cent after China’s central bank, the People’s Bank of China, cut banks’ reserve ratio requirements by 50 points.
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S&P 500 and NASDAQ remained little changed as investors waited for the GDP report and Elon Musk’s Tesla missed Q4 estimates. The EV maker further estimated vehicle volume growth to remain lower in 2024. Shares of Tesla fell 0.92 points, or 0.44 per cent at $208.23. S&P 500 inches 0.08 per cent higher at 4,868.55 with NASDAQ advancing 0.36 per cent to 15,481.92 after Netflix’s strong earnings. 30-stock Dow Jones Industrial Average (DJIA) fell by 0.26 per cent at 37,806.39.