Sensex down over 100 points; M&M drops 3%

Benchmark indices trimmed early losses but continued to remain weak as losses in auto and private bank shares failed to offset gains in IT and metals.

At 11.30AM, Sensex is trading at 26,167 with a 140 points loss while Nify is at 7,820  with a loss of 40 points.

In the broader market, both BSE Mid cap and Small Cap indices have performed marginally better than the market with losses around 0.3%.

Market breadth is weak with 1,307 declines against 971 advances.

The consumer inflation data to be released later in the day and the Q2 earnings of Reliance Industries will be the key indicators for the day.

Rupee is trading higher at 61.24 against US Dollar which has strengthened against all major currencies.

Asian Markets

Asian markets have remained subdued following a weak opening primarily due to persisting slump in global markets  and economy captured most significant by fall in crude prices. Brent crude has dropped $25 since June and on Friday came quite close to $88 a barrel for the first time in nearly four years.

Hang Seng, Strait Times and Shanghai indices  have lost around 0.7% each while NIkkei was spared the pain as Japanese market is closed on account of National Sports day.

Positive Chinese trade data, a rise of 15.3% in exports and 7% in imports, has failed to improve on market sentiments so far.

 
In the global market along with the lingering impact of weak German data, Standard & Poor's downgrade of  France to a negative outlook is likely to result in a weak opening at the European markets.

Sectors and Stocks

BSE IT, Teck and Metal indices are the only ones in green posting gains in the range of 0.5-0.8%. BSE Reality Index is the biggest loser with a decline of around 2% while BSE Auto, Oil & Gas, Capital Goods and FMCG Indices have lost around 1%.

Following upon huge gains on Friday on the back of strong Q2 performance, Infosys has has advanced around 1.3% along with its peer TCS.

Hero Motocorp is another big gainer with advance of 1.4%. Launch of new vehicles before the festive season added premium to its stocks.

After being asked by the government to prepare plans for the handling of de-allocated mines, Coal India has stepped to the task by announcing future strategy to focus on undrground mines to improve productivity while reducing procurement from less produtive mines. It is trading with a gain of around 1%.

Postive Chinese data has brought focus back to metal stocks. Tata Steel is gaining 0.5% while Hindalco and Sesa Sterlite are flat.

Among major declines,Mahindra and Mahindra stocks have declined around 3.4% on back of the company announcing no production days at its tractor plants located at Rudrapur and Jaipur for four days during the remaining period of October, to align production with sales requirements.

Tata motors has declined around 1%. The overseas sales data of company's premium brands, Jaguar and Land Rover are below the market expectations.


Sun Pharma is trading with a loss of around 1%. The company  was pulled up by US drug regulator for failing to take adequate corrective measures on the drugs which were recalled from the US market in this year.

Among other shares,Shares of Essar Group firm like Essar Ports and Essar Shipping has rallied up to 11% after the board of directors of these companies approved the delisting of company’s shares from the stock exchanges

Shares of Future Retail and Future Lifestyle Fashions were upto 3% after the Future Group announced a strategic tie-up with Amazon India.

Novartis India has declined around 2.2%  after being penalised by National Pharmaceutical Pricing Authority (NPPA) to the tune of Rs 300 crore for overcharging consumers on sale of Voveran, its best-selling painkiller medicine. Voveran, Novartis’ analgesic brand, is based on diclofenac, a component under the government’s direct price control.

Shares of multiplex chain operator PVR has trading around 8% higher after Sundaram Mutual Fund acquired nearly over one percentage points stake in the company through open market.

Diamond Power Infrastructure has surged 13%  after reporting 29% year-on-year (yoy) growth in net profit at Rs 40.32 crore for the second quarter ended September 2014 (Q2), on back of strong operational income.