BSE Sensex and NSE’s Nifty 50 declined on Wednesday after starting the year 2019 with gains in the previous session as stocks in Asian markets declined over slowing growth in China. Shares in Hong Kong and China witnessed sharp losses, while stocks traded lower in Australia and South Korea. Oil markets reversed early gains on Wednesday to fall on the back of surging U.S. crude production and concerns of an economic slowdown in 2019.
Eicher Motors shares slump over 5% on December sales data
Eicher Motors shares fell as much as 5.65% to Rs 21,873.25 after the company’s total motorcycles sales declined 13% to 58,278 units in December 2018, from 66,968 units last year. December total exports rose to 2,252 units compared to 1,601 units a year ago.
Eicher Motors on Tuesday said it sold 6,113 buses and trucks in December 2018 as compared to 5,995 units in the year-ago period. According to Eicher, Volvo Trucks India’s sold 123 vehicles in the month under consideration as against 132 vehicles last year.
Rupee falls against US dollar
The Indian rupee weakened against the US dollar as dealers are concerned about slowing global growth and foreign fund outflows from Indian debt and stock markets. At 9.10am, the rupee was trading at 69.59 dollar, down 0.23% from its previous close of 69.44. The currency opened at 69.63 a dollar, touching a high 69.55 and a low 69.64. The 10-year bond yield stood at 7.397%, from its Tuesday’s close of 7.418%.
Jet Airways shares fall 3% on defaults on debt payments
Jet Airways shares fell as much as 3.39% to Rs 271.50 per share after the company disclosed that it has delayed the payment to a consortium of Indian banks, led by State Bank of India. The payment of interest and principal instalment was delayed “due to temporary cash flow mismatch” and the company is in talks with the consortium. The deadline for the payment was Dec. 31, 2018, Jet said in a statement.
Auto stocks trade lower after December sales data
The shares of auto companies traded lower, with the Nifty Auto Index falling over 1%, following lower-than-expected vehicles sales data for December 2018 despite the festival season. Eicher Motors shares fell over 5% and M&M declined over 3%. Ashok Leyland and Tata Motors fell over 1%.
Oil prices recover; Gold, metals fall
Oil markets reversed early gains on Wednesday to fall on the back of surging U.S. crude production and concerns of an economic slowdown in 2019. International Brent crude futures were at $53.65 per barrel, down 15 cents, or 0.3%, from their final close of 2018. WTI spot crude oil futures were at $45.34 per barrel, down 7 cents, or 0.1%.
Metals: Copper slid for a second session on Wednesday as the market kicked off 2019 trading with concerns over China’s economic growth weighing on prices. Three-month LME copper was down 0.1% at $5,957 a tonne, and the most-traded contract in Shanghai dropped 0.6% to $6,982.51 a tonne.
Gold prices edged lower as Asian equities won support on the first day of the new year from gains in U.S. stock futures, pointing to an improvement in risk appetite. Spot gold fell 0.2% to $1,279.31 per ounce. The metal was not far off Monday’s more than six-month high of $1,284.09. US gold futures were little changed at $1,281 per ounce.