Amid a narrow movement, the key benchmark indices held onto small gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 53.35 points or 0.19% to 27,580.57. The Nifty 50 index was currently up 15.75 points or 0.18% at 8,529.75.
Subdued Asian stocks following uncertainty over the outcome of the upcoming US presidential election triggered a negative start on the domestic bourses. The Sensex hit its lowest level in over 16 weeks. The Nifty hit its lowest level in over 15 weeks. The Sensex rose 73.52 points or 0.27% at the day's high of 27,600.74 in mid-morning trade. The barometer index fell 80.91 points or 0.29% at the day's low of 27,446.31 at onset of the day's trading session, its lowest level since 11 July 2016. The Nifty rose 23.65 points or 0.28% at the day's high of 8,537.65 in mid-morning trade. The index fell 24.40 points or 0.29% at the day's low of 8,489.60 at onset of the day's trading session, its lowest level since 19 July 2016.
In overseas stock markets, most Asian stocks were trading lower with uncertainty over next week's US presidential election sending investors rushing for the sidelines. US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,770 shares advanced and 743 shares declined. A total of 103 shares were unchanged. The BSE Mid-Cap index was currently up 0.26%. The BSE Small-Cap index was currently up 0.5%. Both these indices outperformed the Sensex.
Capital goods stocks edged higher. Bharat Heavy Electricals (Bhel) (up 1.75%), BEML (up 0.92%), Bharat Electronics (up 1.26%), Crompton Greaves (up 0.19%), L&T (up 1.14%), Siemens (up 0.27%), Thermax (up 0.11%) rose. ABB India fell 0.1%.
Cement stocks gained. ACC (up 1.72%), UltraTech Cement (up 0.5%) and Shree Cement (up 0.12%) rose.
Ambuja Cements rose 0.83% ahead of its Q3 September 2016 result today, 3 November 2016.
Grasim Industries was off 0.94% at Rs 928.20. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
On the macro front, the Nikkei India Services Purchasing Managers' Index, or PMI, rose to 54.5 in October from 52 in September. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy, Pollyanna De Lima, economist at IHS Markit said. She added that one underlying concern is the sustained stagnant trend in workforces, with both manufacturers and service providers showing some reluctance to hire.
Meanwhile, international rating agency Standard & Poor's (S&P) yesterday, 2 November 2016 affirmed "BBB-/A-3" rating with stable outlook for India. The stable outlook balances India's sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances, S&P said. The ratings on India reflect the country's sound external profile and improved monetary credibility, the agency said. The outlook indicates that rating agency does not expect to change its rating on India this year or next, based on our current set of forecasts, it said. Improvements in policy making continue to strengthen the prospects for India's economic and fiscal performance. Wide fiscal deficits, a heavy debt burden, and low per capita income nonetheless detract from the sovereign's credit profile, it added.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content