The domestic equity benchmarks hit fresh intraday low in afternoon trade. At 13:24 IST, the barometer index, the S&P BSE Sensex, tumbled 523.11 points or 1.39% at 37,083.78. The Nifty 50 index lost 140.15 points or 1.27% at 10,933.30.
Weak domestic economic data and negative global cues weighed on sentiment. A surge in fresh coronavirus cases and intensifying US-China tensions also put pressure on stocks.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.22% while the S&P BSE Small-Cap index was gained 0.96%.
The market breadth was positive. On the BSE, 1340 shares rose and 1148 shares fell. A total of 177 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 958.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 442.73 crore in the Indian equity market on 31 July, provisional data showed.
Total COVID-19 confirmed cases worldwide stood at 18,080,067 with 689,370 deaths. India reported 5,79,357 active cases of COVID-19 infection and 38,135 deaths while 11,86,203 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The seasonally adjusted IHS Markit India Manufacturing PMI fell to 46 in July, from 47.2 in June, and pointed to a marked deterioration in business conditions across the Indian manufacturing sector.
Commenting on the latest survey results, Eliot Kerr, Economist at IHS Markit, said: "Latest PMI data from Indian manufacturers shed more light on the state of economic conditions in one of the countries worst affected by the COVID-19 pandemic. The survey results showed a re-acceleration of declines in the key indices of output and new orders, undermining the trend towards stabilisation seen over the past two months. Anecdotal evidence indicated that firms were struggling to obtain work, with some of their clients remaining in lockdown, suggesting that we won't see a pick-up in activity until infection rates are quelled and restrictions can be further removed."However, on a more positive note, firms remained optimistic, with confidence towards future activity continuing to strengthen during July."
India's fiscal deficit reached Rs 6.62 lakh crore, or 83.2% of the budgeted estimate in the quarter ended June. The gap between the revenue and expenditure during the same period in 2019-20 stood at 61.4% of the budgeted target.
GST collections in July fell to Rs 87,422 crore from Rs 90,917 crore in June, according to a Finance Ministry statement. However, July collections are higher than Rs 62,009 crore in May and Rs 32,294 crore in April.
India's infrastructure output contracted 15% in June from a year earlier, government data released on Friday showed, as a lockdown in response to COVID-19 weighed on economic activities. Infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of industrial output, contracted 24.6% in the three months through June - the first quarter of the fiscal year - from a year earlier, the data showed.
Stocks in Spotlight:
Tata Motors (up 5.26%), Titan Company (up 3.78%), Dr. Reddy's Laboratories (up 1.64%), Tata Steel (up 1.26%) and BPCL (up 0.94%) were the top gainers.
UPL (down 5.39%), IndusInd Bank (down 3.49%), HDFC Life Insurance Company (down 3.73%), Kotak Mahindra Bank (down 3.29%), Axis Bank (down 3.24%) were the top losers.
Maruti Suzuki declined 1.54% to Rs 6,164.05. The car major reported total sales of 108,064 units in July 2020, up 88.2% as against 57,428 units sold in June 2020. Annually, the total sales have fallen 1.1% from 109,264 units sold in July 2019. While total domestic sales rose 1.3% to 101,307 units, total exports sales have fallen 27% to 6,757 units in July 2020 over July 2019.
Mahindra & Mahindra (M&M) shed 0.31% to Rs 604.65. M&M's total tractor sales during July 2020 were at 25,402 units, up by 27% from 19,992 units sold in the same period last year. It reported 36% decline in total automobile sales to 25,678 units in July 2020 from 40,142 units in July 2019. Sequentially, the total auto sales have jumped 32.6% as compared to 19,358 units sold in June 2020.
Bajaj Auto fell 2.31% at Rs 2,935. The auto maker's total vehicle sales tanked 33% to 2.55 lakh units in July 2020 from 3.81 lakh units in July 2019. On a month-on-month (M-o-M) basis, total vehicles sales declined 8.27% in July 2020 from 2.78 lakh units in June 2020.
Total two-wheeler sales declined 26% to 2.38 lakh units in July 2020 over July 2019. Total commercial vehicles sales slumped 71% YoY to 17,276 units in July 2020.
Coal India slipps 0.19% to Rs 129.10. The state-run coal major reported 3% decline in production to 37.36 million tonnes in July 2020 as against 38.51 million tonnes in July 2019. Coal offtake declined 6.9% to 43.39 million tonnes in July 2020 compared with 46.59 million tonnes in July 2019. On a month-on-month basis, coal production slipped 4.69% and coal offtake advanced 4.27% compared with last month. The disclosure was made on Saturday, 1 August 2020.
Bandhan Bank slumped 9.80% to Rs 311.40 after the counter witnessed multiple block deals in early trade today, 3 August 2020.
On the BSE, the counter clocked a volume of 37.34 crore shares as against its average trading volume of 7.21 lakh shares in the past three months. The stock tumbled 11.88% to hit a low of Rs 304.2 on BSE in trade today. Over 91% of the total traded quantity is marked for delivery, BSE data showed.
The media reported that Bandhan Bank's promoter will sell Rs 10,500 crore worth of equity stake in the private sector lender through a block deal on Monday. The block deal involves selling 33.74 crore shares in the lender at a floor price of Rs 311 per share.
The bank's main shareholder Bandhan Financial Holdings, which currently owns 60.95% shares in the lender, was reportedly expected to offload about 20.95% stake in Bandhan Bank. The move is a part of the bank's effort to bring down promoter shareholding in the lender to meet the Reserve Bank of India (RBI) regulatory norms.
Shares in Europe and Asia were trading mixed on Monday as US lawmakers struggled to hammer out a new stimulus plan and a global surge of new coronavirus cases showed no sign of abating.
A private survey released Monday showed China's manufacturing activity expanded in July. The Caixin/Markit manufacturing Purchasing Manager's Index came in at 52.8 for July as compared to 51.2 for June.
Japan's economy shrank an annualised 2.2% in January-March, unchanged after a second revision, data from the Cabinet Office showed on Monday. On a quarter-on-quarter basis GDP shrank 0.6%, unchanged from the second preliminary reading.
South Korea's manufacturing activity shrank at a much slower pace in July, signalling that a gradual recovery in demand is gaining momentum on easing lockdowns, although the resurgence in infections remained a risk. The IHS Markit purchasing managers' index (PMI) rose to 46.9 in July from 43.4 in June, marking the highest reading since January. But that was still below the 50 threshold that separates growth from contraction.
On Friday, Fitch Ratings cut the outlook on the United States' triple-A rating to negative from stable, citing eroding credit strength and a ballooning deficit. The credit rating agency also said the future direction of U.S. fiscal policy depends in part on the November election and the resulting makeup of Congress, cautioning there is a risk policy gridlock could continue.
Tensions between Washington and Beijing likely continued being watched by investors, with U.S. Secretary of State Mike Pompeo reportedly saying Sunday that US President Donald Trump is set to announce “in the coming days” new actions related to Chinese software companies viewed by his administration as a national security threat.
On Friday, Trump reportedly said he will act soon to ban Chinese-owned video app TikTok from the US. Microsoft on Sunday confirmed it has held talks to buy TikTok in the US from Chinese tech firm ByteDance.
In US, stocks wiped out earlier losses and closed higher on Friday as the biggest tech companies and market leaders soared after posting stellar quarterly results. Inspired by blowout earnings from tech heavyweights Apple, Amazon, Facebook and Google parent Alphabet, stocks rallied at the open, slipped into mostly negative territory during the session, and then recovered in the final hour.
Shares of Apple roared 10.5% higher to a new all-time high, after the iPhone maker reported record profit, and announced a 4-for-1 stock split. Amazon, meanwhile, jumped 3.7% after delivering results that soared past forecasts for sales and earnings. Facebook shares rallied 8.2% as the social media giant easily topped expectations for earnings and revenue. Alphabet shares were down 3% after the Google parent met expectations despite a dip in advertising revenue.
Consumer sentiment deteriorated amid a resurgence in new coronavirus cases. The final reading of the index of consumer sentiment stood at 72.5 in July, lower than the flash estimate of 73.2 early in the month and down from June's 78.1, the University of Michigan said Friday.