Aviation stocks recover after yesterday's slide

Key benchmark indices traded near the flat line in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, lost 24.98 points or 0.07% at 33,345.78. The Nifty 50 index declined 13.35 points or 0.13% at 10,336.80.

The Sensex and the Nifty opened with small gains. Later, selling pressure emerged which dragged the key indices to the day's low. Indices, however, bounced back after hitting the intraday low and were hovering in a narrow range near flat line so far.

Among secondary indices, the S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index rose 0.06%. Both these indices outperformed the Sensex.

Overseas, Asian stocks were mixed. Geopolitics remain a focus as US President Donald Trump continues his tour of Asia, wrapping up his visit to Seoul on Wednesday and then head to China. Investors were also keeping a wary eye on Saudi Arabia's sweeping anti-graft purge and an escalation of tensions with Iran.

In US, Dow industrials eked out a small gain yesterday, 7 November 2017 to end in record territory, but the broader market was weighed down by a selloff in financials, consumer discretionary and small-cap stocks amid concerns over the timing and ultimate shape of tax legislation working its way through Congress.

Closer home, the breadth, indicating the overall health of the market, was positive. On BSE, 1,313 shares rose and 1,072 shares fell. A total of 117 shares were unchanged.

Shares of power generation and power distribution companies were mostly higher. Adani Power (up 2.07%), Tata Power Company (up 1.45%), GMR Infrastructure (up 1.14%), CESC (up 0.72%), Power Grid Corporation of India (up 0.6%) and Reliance Power (up 0.01%) gained. Torrent Power (down 0.97%), NTPC (down 0.78%), NHPC (down 0.53%) and Reliance Infrastructure (down 0.43%) declined.

JSW Energy rose 1.89% after the company said it secured an order from Power Company of Karnataka for supply of 200 megawatts power on short term basis for the period from 8 November 2017 to 31 May 2018. The announcement was made after market hours yesterday, 7 November 2017.

Aviation stocks recovered after previous trading session's slide due to surge in crude oil prices. Jet Airways (India) (up 1.89%) and SpiceJet (up 1.34%) edged higher. However, InterGlobe Aviation (down 1.61%) edged lower. Aviation turbine fuel (ATF) or jet fuel prices are linked to international crude oil prices.

Bharat Heavy Electricals (Bhel) was down 3.33% at Rs 90.05. The company said it has bagged a major order for setting up two 765 kv substations on engineering, procurement and construction (EPC) basis in West Bengal. The substations are slated to be commissioned within a schedule of 30 months. The project shall be engineered and delivered by Bhel on total turnkey basis. The announcement was made during market hours today, 8 November 2017.

Maruti Suzuki India declined 0.01% at Rs 8,234.20. The company announced that its production rose 6.23% to 1.41 lakh units in October 2017 over October 2016. The announcement was made during market hours today, 8 November 2017.

On the macro front, the provisional figures of direct tax collections up to October 2017 showed that net collections were at Rs 4.39 lakh crore, which is 15.2% higher than the net collections for the corresponding period of last year. Net direct tax collections represent 44.8% of the total budget estimates of direct taxes for FY 2017-2018 (Rs 9.8 lakh crore). Gross collections (before adjusting for refunds) increased by 10.7% to Rs 5.28 lakh crore during April-October 2017. Refunds amounting to Rs 89507 crore were issued during April 2017 to October 2017, Ministry of Finance said in a statement after market hours yesterday, 7 November 2017.

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