Market sees a bout of mild volatility

A bout of mild volatility was witnessed as key benchmark indices came off after erasing a lion's portion of intraday losses in mid-afternoon trade. At 14:21 IST, the barometer index, the S&P BSE Sensex, was off 84.78 points or 0.32% at 26,084.63. The losses for the Nifty 50 index Nifty were higher in percentage terms than those for the Sensex. The Nifty was currently off 36.15 points or 0.45% at 7,918.75. The Sensex lost 127.73 points or 0.48% at the day's low of 26,041.68 in mid-morning trade, its lowest level since 27 November 2015. Earlier, the barometer index hit its highest level in almost four weeks when it rose 87.01 points or 0.33% at the day's high of 26,256.42 at the onset of the trading session. The Nifty dropped 44.10 points or 0.55% at the day's low of 7,910.80 in mid-morning trade, its lowest level since 27 November 2015. The Nifty hit its highest level in almost four weeks when it rose 24.40 points or 0.3% at the day's high of 7,979.30 in early trade.

The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,334 shares rose and 1,303 shares fell. A total of 148 shares were unchanged. Earlier, the breadth had turned negative from positive in mid-morning trade. The BSE Mid-Cap index was down 0.03%. The BSE Small-Cap index was down 0.09%. The decline in both these indices was lower in percentage terms than the Sensex's fall.

Airline stocks surged. Jet Airways (India) (up 9.74%), Interglobe Aviation (up 1.55%), and SpiceJet (up 6.33%) edged higher

Steel stocks gained on hopes China may announce further stimulus measures to prop up slowing economy. Bhushan Steel (up 1.17%), Steel Authority of India (Sail) (up 2.79%) and Jindal Steel & Power (up 0.01%) gained. China is the World's largest consumer of steel, copper and aluminum.

Tata Steel gained 2.92% after the company announced that its subsidiary incorporated in Singapore T S Global Holdings Pte Ltd. (TSGH) has executed agreements worth $1.5 billion for refinancing exiting debt. The new loan facilities comprise of a 5 year loan of $750 million and a 6 year loan of $750 million. The company said that the new loan facilities are at lower cost with extension of the loan tenor.

JSW Steel rose 3.06% to Rs 976.15. The stock was volatile. The stock hit high of Rs 979.25 and low of Rs 939.10 so far during the day. The company said a decision has been pronounced by the US Court against its subsidiary, JSW Steel USA Inc. JSW Steel is studying and analysing the judgement in detail and evaluating all options available to defend the company's position under the applicable laws, it added.

SRF fell 2.56% after the company said that the operations at its factory located at Manali Industrial Area in Chennai, Tamil Nadu have been disrupted due to flooding of the factory premises caused by incessant rains. The announcement was made during trading hours today, 2 December 2015. The factory has been shut down after midnight of 1 December 2015. Due to heavy water logging and continuous rain, the damage could not be ascertained as of now. The factory is adequately covered by insurance. Adequate steps are being taken to restore normalcy and further updates will be communicated in due course, the company said.

Cox & Kings lost 2.91% after the company through its Holidaybreak plc subsidiary sold 100% of the issued and outstanding shares of Explore Worldwide for GBP 25.8 million to Hotelplan UK Group. The announcement was made after market hours yesterday, 1 December 2015. Explore Worldwide which includes the brands Explore soft adventure tours and RegalDive -- diving adventure specialist, generated net revenue of GBP 11.2 million and earnings before interest, taxation, depreciation and amortization (EBITDA) of GBP 2.3 million in the year ended 31 March 2015 (FY 2015). Peter Kerkar, Director of Cox & Kings said that the sale of Explore Worldwide business helps the company to further increase focus on its three key verticals viz. leisure, education and hybrid hotels (Meininger).

In overseas stock markets, European stocks edged higher amid speculation that the European Central Bank will announce a round of fresh measures to boost the eurozone economy at its regular monetary policy review scheduled tomorrow, 3 December 2015. Chinese stocks edged higher as disappointing manufacturing data spurred hopes of stimulus for the world's second biggest economy.

US stocks edged higher yesterday, 1 December 2015, after downbeat manufacturing report hinted at gradual pace of US interest rate increases next year. The US Federal Reserve is widely expected to announce an increase of 25 basis points in the federal funds rate after a regular monetary policy review scheduled during the middle of this month. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done.

Powered by Capital Market - Live News