Sensex, Nifty hit four-week low

Metal stocks and state-run companies led losses for key benchmark indices. At 12:24 IST, the barometer index, the S&P BSE Sensex, was off 205.11 points or 0.77% at 26,436.20. The 50-unit CNX Nifty was off 55 points or 0.68% at 8,010.80. The Sensex and the Nifty, both, hit 4-week low as a monthly survey showed a further slowdown in the manufacturing sector in October 2015. Weakness in Asian stocks also weighed on sentiment on the domestic bourses. The Sensex dropped 216.30 points or 0.81% at the day's low of 26,440.53 in early afternoon trade, its lowest level since 5 October 2015. The Nifty dropped 58.90 points or 0.73% at the day's low of 8,006.90 in early afternoon trade, its lowest level since 5 October 2015.

The outcome of a monthly survey showed a further loss of growth momentum across the Indian manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) hit 22-month low of 50.7 in October 2015 from a reading of 51.2 in September 2015. A reading above 50 indicates expansion in activity, while one below that level signals contraction.

The market breadth indicating the overall health of the market was weak. On BSE, 1,504 shares fell and 820 shares rose. A total of 102 shares were unchanged. The BSE Mid-Cap index was currently down 0.36%. The BSE Small-Cap index was currently down 0.5%. The decline in both these indices was lower in percentage terms than the Sensex's fall.

In overseas stock markets, Chinese and Japanese stocks led decline in Asian equities as China's manufacturing data pointed to slowing activity. US stocks drifted lower during the previous trading session on Friday, 30 October 2015, after a batch of weaker economic reports and mixed corporate earnings.

Coffee Day Enterprises (CDEL) was trading at Rs 287.65 on BSE, a discount of 12.3% compared with the initial public offer price of Rs 328. The stock debuted at Rs 313 on BSE, a discount of 4.57% compared with its initial public offer (IPO) price. In addition to the coffee business, CDEL operates other select businesses namely, development of IT-ITES technology parks, logistics, financial services and hospitality.

Bank stocks dropped. Among public sector banks, Bank of Baroda (down 2%), UCO Bank (down 2.35%), Syndicate Bank (down 0.64%), Punjab National Bank (down 0.62%), Corporation Bank (down 1.26%), Allahabad Bank (down 0.47%), Bank of India (down 1.98%), State Bank of India (SBI) (down 1.45%), Union Bank of India (down 1.78%), Canara Bank (down 0.92%), and United Bank of India (down 2.27%) edged lower.

Finance Minister Arun Jaitley on Saturday, 31 October 2015, said that recapitalization of public sector banks would give more strength and muscle for the banking sector to lend. Jaitley made these comments while delivering the key-note address at seminar in Mumbai organized by the Confederation of Real Estate Developers' Associations of India on the role of banking and finance in real estate development.

Among private sector banks, HDFC Bank (down 1.3%), Kotak Mahindra Bank (down 0.9%), Federal Bank (down 1.1%), Yes Bank (down 0.22%), and IndusInd Bank (down 0.24%) edged lower. Axis Bank rose 0.16%.

ICICI Bank rose 1.08%, with the stock extending gains registered during the previous trading session triggered by good Q2 September 2015 results. The stock had risen 2.04% to settle at Rs 277 on Friday, 30 October 2015, in the wake of the result announcement. ICICI Bank's net profit rose 11.85% to Rs 3030.11 crore on 8.17% growth in total income to Rs 16106.22 crore in Q2 September 2015 over Q2 September 2014.

Metal & mining stocks declined as China's manufacturing data pointed to slowing activity. Bhushan Steel (down 0.79%), Jindal Steel & Power (down 0.69%), Vedanta (down 2%), Tata Steel (down 2.84%), NMDC (down 2.85%), Hindalco Industries (down 3.21%), Steel Authority of India (down 3.19%), JSW Steel (down 0.84%), Hindustan Zinc (down 1.12%) and National Aluminium Company (down 1.68%) edged lower. China is the world's largest consumer of steel, copper and aluminum.

Activity in China's manufacturing sector unexpectedly contracted in October for a third straight month, an official survey showed on Sunday, 1 November 2015. The official Purchasing Managers' Index(PMI) was at 49.8 in October, the same pace as in previous month. A reading below 50 points suggests an contraction. Meanwhile, another data showed, the Caixin/Markit China Manufacturing PMI edged up to 48.3 in October from 47.2 in September.

Dr Reddy's Laboratories rose 0.24% after the company said it has launched pain killer product, Nise D spray. It will be available in two convenient pack sizes -- pocket pack at Rs 99 and home pack for Rs 130. By launching Nise D spray the company has strengthened its over the counter (OTC) portfolio in India. In India, the market for pain relief products is approximately Rs 1700 crore as per the A C Nielsen Retail measurement study.

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