Sensex, Nifty languish in red; Manufacturing PMI hits nearly 2-year low

On the sectoral front, 9 out of 12 sectoral indices are trading red with BSE Meatl index down 1.6%

Markets continue to trade with weakness for the sixth straight session on sustained selling by foreign investors amid weak Asian cues. Meanwhile, sluggish manufacturing data touching nearly two-year low on absence of fresh orders dampened the sentiments.

By 1:10 pm, the Sensex dropped 224 points at 26,433 and the Nifty slipped 56 points at 8,010. Among broader markets, BSE Midcap and Smallcap indices are down between 0.3-0.5%. Market breadth is weak with 1,570 shares declining and 833 shares advancing.

For the domestic market, the Nikkei Manufacturing Purchasing Managers' Index, compiled by Markit, fell to 50.7 in October from September's 51.2. The 50-mark divides expansion from contraction

On the global front, China's factory activity fell for an eighth straight month in October but at a slower pace as export orders flickered into life, a private survey showed on Monday, pointing to continued sluggishness in the world's second-largest economy.

RUPEE

The Indian has weakened by 21 paise to 65.47 tracking persistent dollar demand from banks and importers despite a weak US currency overseas.

AUTO PACK

Bajaj Auto slumped 5% after the company reported 8.6% drop in total sales at 3,52,822 units in October 2015 compared with 3,86,017 units in October 2014.

Maruti Suzuki India (MSI) today reported a 29.1% rise in total sales in October at 1,34,209 units as against 1,03,973 units in the same month a year ago. The stock is up nearly 1%.

Mahindra & Mahindra is trading higher by 3% after automaker reported 20% year on year (YoY) growth in total sales of 51,383 units in the month of October 2015. It had sold 42,780 units in the same month year ago.

STOCK TRENDS

On the sectoral front, BSE Healthcare, Capital Goods, Metal and Power indices are trading lower between 1-2%. However, BSE Auto and Consumer Durables indices have gained between 0.2-0.5%.

ICICI Bank’s September quarter met analysts expectations on Friday with standalone profit increasing 11.8 percent year-on-year to Rs 3,030 crore, aided by revenue, other income and operating profit.

Sun Pharmaceuticals has dropped 2.4% as its profits and revenue is likely to be adversely impacted due to the temporary supply constraints at its Halol facility and charges arising out of Ranbaxy integration as well as remedial actions.

Larsen and Toubro has fallen 2.5% after it slashed its full-year growth forecast for both order intake and revenue because of a subdued domestic market and a slowdown in the Middle East.

Metal stocks took a beating on the back of weak China manufacturing data. Hindalco, Tata Steel and Vedanta have lost between 0.5-4%.

Reliance Communication has surged 2% after the company said it is merging the telecom business of Sistema Shyam Teleservices Ltd (SSTL) that operates MTS brand with itself in an all-stock deal worth around Rs.5,000 crore, marking the start of the much-anticipated consolidation in India’s telecom sector.

Jet Airways soared 8% after Rakesh Jhunjhunwala bought 1.05% stake in the airline for Rs.50.52 crore, according to BSE and NSE block deal data. SpiceJet Ltd rises 3.7% to Rs.48.50.