Auto, cement stocks slide

Sustained selling pressure in index heavyweights L&T, Reliance Industries (RIL) and HDFC kept the key benchmark indices depressed in early afternoon trade. At 12:25 IST, the barometer index, the S&P BSE Sensex was down 301.86 points or 1.08% to 27,574.75. The Nifty 50 index was currently down 99.90 points or 1.16% at 8,526.35. A new poll showing Republican candidate Donald Trump leading the US presidential race spooked investors.

The broad market depicted weakness with many small and mid-cap stocks suffering sharp slide. There were more than two losers for every gainer on BSE. 1,898 shares declined and 715 shares rose. A total of 92 shares were unchanged. The BSE Mid-Cap index was currently down 1.68%. The BSE Small-Cap index was currently down 1.66%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

A gap-down opening in tandem with other Asian stocks pulled the key benchmark indices to their lowest level in over two weeks in early trade. The Sensex lost 341.59 points or 1.23% at the day's low of 27,535.02 in early trade, its lowest level since 17 October 2016. The barometer index fell 197.29 points or 0.71% at the day's low of 27,679.32 in opening trade. The Nifty lost 107.55 points or 1.25% at the day's low of 8,518.70 in early trade, its lowest level since 17 October 2016. The index fell 78.80 points or 0.91% at the day's high of 8,547.45 at onset of the day's trading session.

Index heavyweight and engineering and construction major L&T lost 1.68% to Rs 1,439.95. The stock hit high of Rs 1,457 and low of Rs 1,437 so far during the day.

Index heavyweight Reliance Industries (RIL) fell 1.64% to Rs 1,031.10. The stock hit high of Rs 1,042.05 and low of Rs 1,029.10 so far during the day.

Index heavyweight and housing finance major HDFC declined 1.11% to Rs 1,400.90. The stock hit high of Rs 1,409 and low of Rs 1,392.80 so far during the day.

Auto stocks fell. Tata Motors (down 2.67%), Maruti Suzuki India (down 0.83%), Hero MotoCorp (down 1%), TVS Motor Company (down 1.04%) and Ashok Leyland (down 1.11%) fell.

Mahindra & Mahindra rose 2.71% after the company reported a 61% growth in its total tractor sales at 45,177 units in October 2016 over October 2015. Mahindra & Mahindra's (M&M) domestic tractor sales rose 61% to 43,826 units in October 2016 over October 2015. Exports surged 69% to 1,351 units in October 2016 over October 2015. The company during market hours today, 2 November 2016 said its total auto sales rose 1% to 52,008 units in October 2016 over October 2015. Total domestic sales were almost flat at 48,729 units in October 2016 compared with 48,815 units in October 2015. Exports rose 28% to 3,279 units in October 2016 over October 2015.

Bajaj Auto lost 1.06% after the company said its total sales rose 1% to 3.56 lakh units in October 2016 over October 2015. Bajaj Auto's domestic sales rose 6% to 2.38 lakh units in October 2016 over October 2015. Exports declined 8% to 1.17 lakh units in October 2016 over October 2015. The company announced the monthly sales volume data during market hours today, 2 November 2016.

Escorts rose 1.08% after the company reported strong tractor sales in October 2016 over October 2015. Escorts said agri machinery segment (EAM) reported 53% growth in total tractor sales to 8,970 units in October 2016 as against 5,862 units in October 2015. Domestic tractor sales rose 51.9% to 8,859 units in October 2016 over October 2015. Export rose 270% to 111 units in October 2016 over October 2015. The announcement was made during trading hours today, 2 November 2016.

Cement stocks fell. Ambuja Cements (down 0.74%), UltraTech Cement (down 1.33%) and Shree Cement (down 0.11%) fell. ACC rose 0.05%.

Grasim Industries was off 2.4%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

In overseas markets, Asian markets were trading lower as a new poll showing Republican candidate Donald Trump leading the US presidential race spooked investors. US markets closed lower yesterday, 1 November 2016 as investors grappled with a tightening presidential race, economic data, corporate earnings, and the Federal Reserve's monetary policy decision. Polls reportedly show the race between Democratic nominee Hillary Clinton and Republican rival Donald Trump continues to tighten. Another poll reportedly showed Trump taking a one-point lead, while the polling average showed Clinton's lead narrowed to 2.2 percentage points from more than 7 points two weeks ago. Clinton is seen as the more market-friendly candidate by many investors. Meanwhile, the Federal Open Market Committee (FOMC)'s two-day meet on monetary policy will concludes today, 2 November 2016 and is widely expected to leave rates unchanged. FOMC in its September meet had kept policy rate unchanged.

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