Sensex down nearly 100 points; HDFC twins slip 2%

Main losers on the Sensex are HDFC Bank, HDFC, Sun Pharma, M&M, ICICI Bank, Axis Bank and BHEL

Benchmark indices are trading lower tracking weak global cues along with metal, financials and IT shares leading the fall.

At 11:00 AM, the 30-share Sensex was down 87 points at 27,960 and the 50-share Nifty was down 31 points at 8,359.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.4-1%.

The market breadth in BSE remains marginally positive with 1,258 shares advancing and 1,126 shares declining.

The rupee is trading steady at 61.72/73 vs its previous close.

Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 645.90 crore on that day.

GLOBAL MARKETS

Japanese stocks skidded on Monday, helping the yen rebound from a fresh seven-year low against the dollar touched after news Japan unexpectedly fell into recession in the third quarter.

Meanwhile, Shanghai and Hong Kong opened around 1% higher but quickly erased gains on suspected profit-taking by traders who had positioned for the launch of the Stock Connect scheme that will let Hong Kong and Shanghai investors buy and sell shares on each other's bourses.

Japan's economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election halfway through his term in office.

Gross domestic product (GDP) fell at an annualised 1.6% pace in July-September, after it plunged 7.3% in the second quarter following a rise in the national sales tax, which clobbered consumer spending.

US stocks were little changed on Friday with benchmark indexes near record levels, as health-care shares sank to offset gains among energy producers and investors weighed whether the recent rally in equities may have been overdone.

The US Federal Reserve reports the US industrial production data for October later in the global day today.

SECTORS & STOCKS IN FOCUS

BSE Metal, IT, Bankex and Healthcare indices have plunged by almost 1% each. However, BSE Auto, Consumer Durables and Power indices are up 0.5-1%.

The main losers on the Sensex are HDFC Bank, HDFC, Sun Pharma, M&M, ICICI Bank, Axis Bank and BHEL, all dropping between 1-2%.

HDFC twins have lost nearly 2% each. On Friday, Foreign Investment Promotion Board (FIPB) enhanced the foreign investment limit in HDFC Bank to 74%. However, the board decision to treat parent HDFC as a foreign holding will leave little headroom for any new foreign investors to buy stakes in the bank. Earlier, the bank was also excluded from the MSCI-Asia index.

On the gaining side, Tata Motors and SBI are among top gainers in the Sensex 30 pack, both surging by 3%.

Tata Motors has gained 3% after reporting a 60 bps improvement in consolidated operating profit margins to 15.8% in September quarter.

State Bank of India (SBI) has moved higher by nearly 3% to Rs 2,860, extending its Friday’s 2.5% gain on NSE, after the bank’s asset quality was stable with July-September 2014 (Q2) gross non-performing assets (NPA) as a percentage of total advances at 4.89% against 4.9% quarter-on-quarter (Q-o-Q). Net NPA was at 2.73% against 2.66% sequentially.

Other notable gainers are NTPC, Hero Moto, Bharti Airtel and Bajaj Auto.

Among other shares, JSW Engery and Jaiprakash Power Ventures have rallied by up to 6% in early morning deals on National Stock Exchange (NSE) after these companies signed a hydro power deal.

Shakti Pumps (India) has locked in lower circuit of 20% at Rs 201 on National Stock Exchange (NSE) after reporting a sharp 44% year on year decline in net profit at Rs 3.35 crore for the second quarter ended September 2014 (Q2), due to lower sales.