Market may extend recent losses on weak Asian stocks

Key indices may edge lower in early trade tracking weakness in Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 15.50 points at the opening bell.

In overseas markets, Asian stocks declined after soft Chinese factory surveys stoked global growth concerns. US stocks drifted lower on Friday, 30 October 2015, after government economic data released on that day and earlier that week suggested the economy is still sluggish,

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1464.89 crore on Friday, 30 October 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 1560.11 crore on Friday, 30 October 2015, as per provisional data.

Among corporate news, Coffee Day Enterprises (CDEL) debuts on the secondary equity market today, 2 November 2015. The company had priced the initial public offer (IPO) at the top end of the Rs 316 to Rs 328 per share price band for the IPO. The IPO closed on 16 October 2015.

On a consolidated basis, IDFC reported net loss of Rs 1468.83 crore in Q2 September 2015 compared with net profit of Rs 421.40 crore in Q2 September 2014. IDFC's total income rose 1.02% to Rs 2512.90 crore in Q2 September 2015 over Q2 September 2014. IDFC's gross loan book decreased by 15% to Rs 46889 crore as on 30 September 2015 from Rs 54851 crore as on 30 September 2014. The result was announced on Saturday, 31 October 2015.

Adani Enterprises, Adani Ports and Special Economic Zone, Piramal Enterprises and Reliance Capital will announce their July-September 2015 quarterly earnings today, 2 November 2015.

L&T may extend post-result slide after the company's management in a post earnings conference call reduced the company's order inflow guidance to around 5-7% for the current financial year as compared to earlier guidance of around 15%. Revenue growth guidance was also reduced to around 12.5% against earlier of around 15%. Lower commodity prices, weakening currency, lower demand worldwide and execution challenges were the major reasons for the reduction in guidance. The L&T management expects a significant pick up in business opportunities to happen only in the year ending 31 March 2017 (FY 2017). The L&T stock price lost 4.1% to settle at Rs 1,411.15 on BSE on Friday, 30 October 2015, after the company's Q2 September 2015 results disappointed investors.

On macro front, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) data for the month of October 2015 is due today, 2 November 2015. The seasonally adjusted Nikkei India Manufacturing PMI slipped to a seven-month low of 51.2 in September 2015 compared with 52.3 in August 2015.

Disappointing second quarter results from cigarette major ITC and engineering and construction major L&T triggered fresh slide on the domestic bourses on Friday, 30 October 2015. The Sensex lost 181.31 points or 0.68% to settle at 26,656.83, its lowest closing level since 1 October 2015.

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