Market trims gains

Losses for index heavyweights ITC and L&T pulled key benchmark indices off the day's high in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 60.06 points or 0.23% at 26,619.21. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 12.35 points or 0.15% at 8,063.15. The market breadth indicating the overall health of the market was positive. On BSE, 1,444 shares rose and 1,050 shares fell. A total of 109 shares were unchanged. The BSE Mid-Cap index was currently up 0.27%. The BSE Small-Cap index was currently up 0.5%. Both these indices outperformed the Sensex.

Index heavyweight and cigarette major ITC fell 1.14% to Rs 333.40. The stock hit a high of Rs 338.70 and low of Rs 332.70 so far during the day.

Index heavyweight and engineering and construction major L&T extended its recent slide triggered by the company's disappointing Q2 September 2015 results and the company's management cutting the company's order inflow and revenue guidance for the full year. The stock was currently off 1.13% to Rs 1372.70. The scrip was volatile. The stock hit a low of Rs 1,368 in intraday trade so far, which is 52-week low for the counter. The stock hit a high of Rs 1,398 so far during the day.

On Friday, 30 October 2015, L&T'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).

Shares of state-run companies edged higher on renewed buying. NTPC (up 3.35%), Bharat Electronics (up 2.2%), State Trading Corporation of India (up 2.93%), NMDC (up 0.68%), ONGC (up 0.43%), MMTC (up 0.57%), Coal India (up 0.57%), REC (up 3.31%), Neyveli Lignite Corporation (up 0.56%) edged higher. GAIL (India) (down 1.1%), Bharat Heavy Electricals (Bhel) (down 0.06%) and Steel Authority of India (down 0.78%) fell.

Power Grid Corporation of India gained 1.55% ahead of its Q2 results today, 3 November 2015.

Power Finance Corporation rose 1.83% ahead of its Q2 result today, 3 November 2015.

Cement stocks gained. ACC (up 1.49%), UltraTech Cement (up 0.86%), Shree Cement (up 0.84%) and Ambuja Cements (up 0.14%) gained.

Grasim Industries was up 0.57% at Rs 3,703. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

ABB India edged higher in volatile trade after the company reported strong Q3 September 2015 results. The stock was currently up 0.15% at Rs 1,275.25. The stock hit high of Rs 1,299.05 and low of Rs 1,221 so far during the day. ABB India's net profit rose 31.11% to Rs 59 crore on 6.72% growth in revenue to Rs 1969 crore in Q3 September 2015 over Q3 September 2014. The result was announced during market hours today, 3 November 2015.

Sugar stocks rose. Bajaj Hindusthan (up 1.75%), Dhampur Sugar Mills (up 5.09%), Sakthi Sugars (up 3.72%), Balrampur Chini Mills (up 0.39%), Shree Renuka Sugars (up 1.75%), Simbhaoli Sugar Mills (up 1.04%), Dwarikesh Sugar Industries (up 4.94%) rose. Triveni Engineering & Industries fell 0.52%.

Vadilal Industries (up 14.46%), La Opala RG (up 13.08%), Sical Logistics (up 12.54%), Kwality (up 10.29%) and Saregama India (up 10%) were among the major gainers from the BSE Small-Cap index.

On the macro front, the latest data showed that the index of eight core industries comprising nearly 38% of the weight of items included in the index of industrial production (IIP) rose 3.2% in September 2015 over September 2014. The data was announced after market hours yesterday, 2 November 2015.

In overseas stock markets, Asian stocks edged higher as investors shook off concerns about Chinese growth. US stocks edged higher yesterday, 2 November 2015, as investors brushed off weak manufacturing data and focused instead on a spate of deals and earnings.

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