PSU OMCs decline

Key benchmark indices were off day's low in early afternoon trade. At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 104.69 points or 0.3% at 34,906.96. The Nifty 50 index was down 43.95 points or 0.42% at 10,509.05.

The Sensex was trading below the psychological 35,000 level after sliding below that level in early trade. Domestic stocks drifted lower in early trade on negative Asian stocks. Key benchmark indices cut losses in morning trade. Fresh selling dragged the key benchmark indices to intraday low in mid-morning trade.

The S&P BSE Mid-Cap index was off 0.35%. The S&P BSE Small-Cap index was off 0.2%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1160 shares rose and 1210 shares fell. A total of 138 shares were unchanged.

Among shares of oil exploration and production (E&P) companies, Reliance Industries (up 0.35%) rose. Oil India (down 0.85%) fell.

ONGC rose 0.22% after net profit rose 61.1% to Rs 8,264.61 crore on 47.6% increase in net sales to Rs 27,989.17 crore in Q2 September 2018 over Q2 September 2017. Oil production fell 6.9% to 4.93 million tonnes, but gas output was up 2.9% at 6.13 billion cubic metres in Q2 September 2018 over in Q2 September 2017. The result was announced on Saturday, 3 November 2018.

Among PSU OMCs, HPCL (down 3.22%), BPCL (down 2.75%), and Indian Oil Corporation (down 4.86%) declined.

Shares of state-run gas transmission and distribution firm GAIL (India) rose 1.15% ahead of its Q2 September 2018 result today, 5 November 2018.

Shares of Adani Gas were locked at an upper circuit limit of 5% at Rs 73.70 post de-merger from Adani Enterprises. The shareholders of Adani Enterprises were allotted one equity share of Adani Gas for each share held in Adani Enterprises. Adani Gas is developing city gas distribution networks to supply the piped natural gas to the industrial, commercial, domestic (residential) and compressed natural gas to the transport sector.

On the macro front, October data pointed to a stronger improvement in India's service sector, with an accelerated upturn in new work underpinning quicker rises in activity and jobs. Cost inflationary pressures eased, resulting in a softer increase in selling prices. Meanwhile, business sentiment remained positive, but was hampered by political uncertainty. At 52.2 in October, the seasonally adjusted Nikkei India Services Business Activity Index posted in expansion territory for the fifth straight month. Moreover, rising from 50.9 in September, the latest figure pointed to the quickest rate of growth since July.

Overseas, Asian stocks declined as fears of faster rate hikes in the United States and uncertainty around the US-China trade war dented risk sentiment. Growth in activity in China's service sector slipped to a 13-month low in October, a private gauge showed Monday. The Caixin China services purchasing managers' index slipped to 50.8 in October from 53.1 in September, Caixin Media Co. and research firm Markit said.

US stocks declined on Friday, 2 November 2018 after optimism over a potential US-China trade deal ebbed after White House economic adviser Larry Kudlow reportedly downplayed the potential for a quick deal with China.

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