Market languishes at lower levels

Key benchmark indices continued to hover in negative terrain in mid-afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was down 451.68 points or 1.64% at 27,066. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 151.15 points or 1.77% at 8,374.60. The Sensex regained the psychologically important 27,000 mark in volatile trade after hitting an intraday low below that level in intraday trade. A sudden spike in US bond yields to a 10-month high rattled emerging equity markets.

In overseas stock markets, most European shares edged higher, boosted by gains among financials stocks following a strong update from the region's biggest insurer Allianz. Most Asian shares edged lower as US bond yields soared on expectations US President-elect Donald Trump's policies would stoke inflation. Investors fear that a higher interest rates under incoming President Donald Trump will spark capital outflows from the emerging equity markets.

In US, the Dow Jones Industrial Average rallied to a record close yesterday, 10 November 2016, as investors continued to revise their strategies and reposition portfolios in response to Donald Trump's unexpected presidential election victory.

Back home, the broad market depicted weakness. There were almost five losers against every gainer on BSE. 2,140 shares fell and 436 shares rose. A total of 140 shares were unchanged. The BSE Mid-Cap index was currently down 2.89%. The BSE Small-Cap index was currently down 2.69%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

Auto stocks declined. TVS Motor Company (down 5.33%), Hero MotoCorp (down 3.96%), Eicher Motors (down 3.56%), Escorts (down 3.48%), Tata Motors (down 3.34%), Maruti Suzuki India (down 2.85%), Bajaj Auto (down 2.01%) and Ashok Leyland (down 0.67%), edged lower.

Mahindra & Mahindra (M&M) was down 2.39% to Rs 1,289.75. The company's net profit rose 27.08% to Rs 1163.27 crore on 16.98% rise in total income to Rs 12071.13 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 11 November 2016.

The combined net profit of M&M and Mahindra Vehicle Manufacturers Limited (MVML) rose 29% to Rs 1253 crore on 18% increase in revenue to Rs 12049 crore in Q2 September 2016 over Q2 September 2015.

MVML, was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company. Hence the combined results of M&M and MVML (combined entity) provide a comprehensive view of the company's performance.

Most capital goods shares edged lower. Havells India (down 5.88%), Crompton Greaves (down 3.96%), Bharat Electronics (down 3.29%), BEML (down 2.92%), Praj Industries (down 2.39%), Punj Lloyd (down 2.39%), GE Power India (down 2.05%), Lakshmi Machine Works (down 1.7%), Reliance Defence and Engineering (down 1.68%), Suzlon Energy (down 1.4%), Jindal Saw (down 1.37%), AIA Engineering (down 1.19%), GE T&D India (down 1.13%), Bharat Heavy Electricals (down 0.25%) and Siemens (down 0.24%), edged lower. SKF India (up 0.18%), Thermax (up 1.32%) and ABB India (up 1.43%), edged higher.

Engineering and construction major L&T was down 0.79% to Rs 1,402.50.

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