Tata Motors crashes on BSE over weak June quarter results

Tata Motors led benchmark indices on Thursday to extend their losses in early trade in response to its disappointing June quarter (Q1) results announced the previous day. The stock fell 6.75 percent to Rs 388 before recovering to trade at Rs 391, down 6.15 percent, on the BSE at around 10.20 am. Security and Intelligence Services (India), or SIS, debuted on stock exchanges at a premium of around 5 percent to the issue price of Rs 815 on the BSE.

The BSE Sensex was trading 138 points lower at 31,660 while the broad-based index Nifty was down 50 points to 9,857.

Also read: Pharma stocks led by Sun, Aurobindo drag Sensex, Nifty

Apart from Tata Motors, other blue-chip stocks in the red included ONGC, Adani Ports and ICICI Bank while pharma stocks were trading with minor gains after the previous day's losses.

Tata Motors posted a net profit of Rs 3,200 crore at a consolidated level for Q1 on the back of a one-time gain of ~£436 million, or Rs 3,605 crore from pension benefit plan. At a standalone level, the company actually posted a quarterly loss of Rs 467 crore as against net profit of Rs 26 crore in the corresponding period last year.

In related news, India's direct tax collections rose 19 percent to Rs 1.90 lakh crore for the four-month period ended July 2017. Simultaneously, the number of tax returns rose 25 percent to Rs 2.83 crore for the financial year 2016-17 till August 5, according to the finance ministry. 

Nirmal Bang Institutional Equities said in a note on Thursday that the Competition Commission of India has approved private equity major Warburg Pincus' entity buying 49 percent stake in Tata Technologies Ltd (TTL).

On Wednesday, FIIs were net sellers of Indian equities worth Rs 841 crore, according to provisional data released by the National Stock Exchange (NSE).