Intraday recovery for Sensex proves short-lived

A bout of volatility was witnessed as the barometer index, the S&P BSE Sensex, once again edged lower after erasing almost entire intraday losses in mid-afternoon trade. At 14:16 IST, the Sensex was off 74.65 points or 0.27% at 27,232.18. The losses for the Sensex were lower in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently off 31.50 points or 0.38% at 8,230.15. Shares of state-run banks extended losses. Index heavyweight L&T, too, extended intraday losses. Another index heavyweight and IT major Infosys extended intraday gains.

The market breadth indicating the overall health of the market was negative. On BSE, 1,432 shares fell and 1,118 shares rose. A total of 177 shares were unchanged. The BSE Mid-Cap index was down 0.34%. The BSE Small-Cap index was down 0.63%. The decline in both these indices was higher than Sensex's decline in percentage terms.

IT major Infosys was up 1.25% at Rs 1,139.45. The stock hit a day's high of Rs 1,141.95 and a low of Rs 1,125.35 so far during the day.

Index heavyweight L&T was down 1.52% at Rs 1,549. The stock hit a day's high of Rs 1,577 and a low of Rs 1,546 so far during the day.

Cement shares were mixed. India Cements (down 1.5%), HeidelbergCement India (down 1.28%), JK Lakshmi Cement (down 1%), Ambuja Cements (down 0.52%), edged lower. UltraTech Cement (up 0.01%), Shree Cement (up 0.45%) and J K Cement (up 0.85%) edged higher.

Grasim Industries was up 0.70%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

ACC was down 0.48% at Rs 1,375.50. The stock hit a high of Rs 1,386.20 and a low of Rs 1,358 so far during the day. ACC's consolidated net profit fell 40.2% to Rs 115.21 crore on 1.5% decline in total income to Rs 2808.29 crore in Q3 September 2015 over Q3 September 2014. ACC said that the company made a provision of Rs 38 crore in Q3 September 2015 for the District Mineral Foundation and National Mineral Exploration Trust. While sales realization was almost flat, there was a reduction in input and energy costs, ACC said. The company continues its focus on cost management, ACC said.

Shares of most auto parts makers declined. Bharat Seats (down 3.39%), Munjal Showa (down 1.86%), Lumax Industries (down 1.76%), Metalyst Forgings (down 1.69%), Subros (down 1.4%), Ramkrishna Forgings (down 1.13%), Amtek Auto (down 0.9%), Automotive Axles (down 0.8%), Bharat Forge (down 0.72%) and Steel Strips Wheels (down 0.03%) edged lower. Sona Koyo Steering Systems (up 0.65%), Gabriel India (up 1.02%), Banco Products (up 1.32%), Exide Industries (up 3.99%) and Clutch Auto (up 6.82%) edged higher.

In overseas stock markets, Chinese equities retreated from an eight-week high as investors weighed whether an equity rebound had gone too far. The Shanghai Composite lost 3.06%. Japanese stocks edged higher as data showing lower-than-expected growth in Japan's merchandise exports in September 2015 added to expectations that the Japanese government will announce fiscal stimulus and the country's central bank will announce expansion of its bond-buying program. Weak Japanese data in recent months has fuelled expectations for additional fiscal and monetary stimulus. Recent data showed that Japanese industrial production fell for the second month in a row in August 2015. In Europe, key benchmark indices reversed initial gains.

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