Market turns range bound

Indices traded in a narrow range near the flat line in mid-afternoon trade. The Nifty hovered around the 11,900 mark but failed to breach the level. At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 16.89 points or 0.04% at 40,112.16. The Nifty 50 index was up 1.6 points or 0.01% at 11,879.05.

The broader market continued to outperform the benchmark indices. The S&P BSE Mid-Cap index was up 0.34%. The S&P BSE Small-Cap index was up 0.49%.

The market breadth was positive. On the BSE, 1379 shares rose and 1102 shares fell. A total of 178 shares were unchanged. In Nifty 50 index, 23 stocks advanced and 27 stocks declined.

Macro data:

India's unemployment rate in October rose to 8.5%, the highest since August 2016, and up from 7.2% in September, according to data released by the Centre for Monitoring Indian Economy (CMIE) on Friday, reflecting the impact of a slowdown in the economy.

The headline seasonally adjusted IHS Markit India Manufacturing PMI fell to a two-year low of 50.6 in October 2019 from 51.4 in September. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.

India's fiscal deficit reached nearly 93% of the budget estimate at Rs 6.52 lakh crore at the end of September in the current financial year, government data showed on Thursday. In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 6,51,554 crore as on 30 September, according to the data released by the Controller General of Accounts (CGA). The deficit stood at 95.3% of the 2018-19 budget estimate (BE) in the corresponding month a year ago. The government has pegged the fiscal deficit for the current financial year at Rs 7.03 trillion, aiming to restrict the deficit at 3.3% of the gross domestic product (GDP).

The output of the core sector fell a record 5.2% in September, with production by seven of the eight industries declining. In September 2018, it had risen 4.3%, and 0.1% in August 2019. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP) and includes industries like coal, crude oil, natural gas refinery products, fertilizers, steel, cement and electricity.

Numbers to watch:

The yield on 10-year benchmark federal paper fell to 6.524% at 14:16 IST compared with 6.643% in the previous trading session.

In the foreign exchange market, the Indian rupee edged higher against the dollar in mid afternoon trade. In the spot currency market, the Indian unit was last seen trading at 70.905. On Tuesday, it closed at 70.925 against the US dollar.

In the commodities market, Brent crude for January 2020 settlement was up 7 cents at $59.69 a barrel. The contract fell 1.03% to settle at $ 59.62 a barrel during the previous trading session.

MCX Gold futures for 5 December 2019 settlement edged 0.12% lower to Rs 38,530.

Stocks in spotlight:

SML Isuzu declined 2.83% after the auto maker reported a major drop in October monthly sales. Total sales tumbled 37.9% to 515 units in October 2019 over 829 units in October 2018. With respect to YTD, sales fell by 11.8% to 6,945 units in April-October 2019 as against 7,871 units in April-October 2018.

Bank India (BOI) was trading 1.26% higher at Rs 72.2. The bank announced its Q2 2019 earnings during market hours today. The bank reported a net profit of Rs 266 crore in Q2 September 2019 as against a net loss of Rs 1156 crore in Q2 September 2018. The bank's total income rose 10.97% to Rs 11985.50 crore YoY basis. The ratio of gross NPAs to gross advances stood at 16.31% as on 30 September 2019 as against 16.50% as on 30 June 2019 and 16.36% as on 30 September 2018. The bank's provisions and contingencies fell 38.61% to Rs 2052.27 crore in Q2 September 2019 over Q2 September 2018. The bank's capital adequacy ratio improved to 14.09% in Q2 2019 as against 10.93% in Q2 2018.

Hawkins Cookers surged 4.88% after the company announced decent Q2 earnings during market hours today. The company's net profit jumped 53.27% to Rs 26.96 crore on a 11.51% rise in revenue from operations to Rs 192.56 crore in Q2 September 2019 as against Q2 September 2018.

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