Market registers small losses on provisional basis

Key benchmark indices registered small losses in a volatile trade. The barometer index, the S&P BSE Sensex fell 56.20 points or 0.21% at 26,248.43, as per the provisional closing data. The Nifty 50 index lost 6.30 points or 0.08% at 8,102.15, as per the provisional closing data. Key indices pared intraday gains during the last one hour of trading session as European and Asian stocks trimmed gains.

The Sensex lost 65.42 points or 0.24% at the day's low of 26,239.21 in late trade, its lowest level since 9 November 2016. The barometer index rose 316.77 points or 1.2% at the day's high of 26,621.40 at the onset of trading session. The Nifty lost 15.30 points or 0.18% at the day's low of 8,093.15 in late trade, its lowest level since 9 November 2016. The index rose 101.60 points or 1.25% at the day's high of 8,210.05 at the onset of trading session.

In overseas stock markets, European and Asian stocks witnessed mixed trend. US stocks registered modest gains yesterday, 15 November 2016, as energy shares climbed on the back of rising crude oil prices. Federal Reserve Vice Chair Stanley Fischer reportedly said yesterday, 15 November 2016, that he was surprised by the outcome of the US presidential election. Fischer cautioned it is too early to fully assess market fallout and said market swings following Britain's vote to leave the European Union provided a cautionary example. Fischer reportedly said that US banking rules may be limiting liquidity for some securities but their impact is not unduly hurting markets.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,548 shares declined and 1,050 shares rose. A total of 157 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.47%. The BSE Small-Cap index provisionally gained 0.05%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 4253.24 crore, lower than turnover of Rs 6529.98 crore registered during the previous trading session.

Auto stocks edged higher after the public sector oil marketing companies (PSU OMCs) announced reduction in petrol and diesel prices with effect from midnight of 15/16 November 2016. Eicher Motors (up 3.55%), Maruti Suzuki India (up 3.29%), TVS Motor Company (up 3.12%), Bajaj Auto (up 1.83%), Hero MotoCorp (up 0.36%) and Tata Motors (up 0.16%) rose. Ashok Leyland (down 4.9%) and Mahindra & Mahindra (down 0.25%) declined. PSU OMCs announced reduction in selling price of petrol by Rs 1.46 per litre and reduction in selling price of diesel by Rs 1.53 per litre (excluding state levies).

Index heavyweight and housing finance major HDFC rose 2.51% after the company said that it intends to raise Rs 2000 crore through issue of senior, secured, non-convertible debentures on private placement basis. HDFC said that the debentures will carry a coupon rate of 7.72% per annum and will have a tenor of 10 years. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the company. The issue will remain open for only one day on 18 November 2016. The announcement was made after market hours yesterday, 15 November 2016.

Index heavyweight and IT major Infosys rose 1.32% at Rs 937. The stock hit a high of Rs 956.70 and a low of Rs 926.10 in intraday trade.

Ambuja Cements was off 3.36%. ACC was down 1.8%. In a press release yesterday, 15 November 2016, LafargeHolcim announced that its subsidiary Holderind Investments has increased its shareholding in Ambuja Cements by 3.91 crore shares to 125.31 crore shares (63.11% of total Ambuja shares) and in ACC, a subsidiary of Ambuja, by 78.70 lakh shares shares to 84.11 lakh shares (4.48% of total ACC shares). The purchase price will be paid in Indian rupees. The impact on LafargeHolcim's net debt is CHF 325 million. This investment was not included in the Group's net debt objective of around CHF 13 billion at the end of 2016 which should be adjusted accordingly, LafargeHolcim said. India is one of LafargeHolcim's key markets with very solid long term fundamentals and a clear potential for further improvement in business performance. These share purchases further increase the Group's interest in its two strong companies which constitute a solid platform from which to capture future growth, LafargeHolcim said.

GAIL (India) reversed intraday gains. The stock was off 2.42% at Rs 425.40. The stock hit a high of Rs 444.95 and a low of Rs 424 in intraday trade. The company's net profit surged 179.84% to Rs 924.65 crore on 15% decline in total income to Rs 12375.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 15 November 2016.

Net profit was boosted by a turnaround in its petrochemical business and reduction in interest costs. The company's profit before tax (PBT) surged 151% to Rs 1375 crore in Q2 September 2016 over Q2 September 2015.

The company's net profit rose 9% to Rs 924.65 crore in Q2 September 2016 over Q1 June 2016 (excluding the gains from stake sale in Mahanagar Gas), largely on account of better performance in natural gas transmission and petrochemical segment.

During the quarter, GAIL's petrochemical business has seen a turnaround with sales jumping 61% on year-on-year basis. This has resulted in increase in revenue in this segment by 53% to Rs 1358 crore and the profit stood at Rs 104 crore in Q2 September 2016 as against loss of Rs 364 crore in Q2 September 2015.

The increase in net profit during Q2 September 2016 on year on year basis, was also supported by increase in natural gas marketing & transmission volumes by 8% and 12% respectively and liquid hydrocarbon sales by 9%.

On the macro front, data released by the government after market hours yesterday, 15 November 2016 showed that the all-India general CPI inflation dipped to 4.2% in October 2016 compared with 4.39% in September 2016. The core CPI inflation was nearly flat 4.81% in October 2016 from 4.77% in September 2016.

India's trade deficit in October 2016 widened to $10.16 billion compared with $8.34 billion in the previous month, government data released after market hours yesterday, 15 November 2016 showed. Merchandise exports grew 9.6% year-on-year to $23.5 billion in October, while imports expanded 8.11% year-on-year to $33.67 billion.

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