Sensex, Nifty hit over one-week low

Key benchmark indices extended losses and hit fresh intraday low in morning trade as weakness in Asian stocks affected sentiment adversely. At 10:22 IST, the barometer index, the S&P BSE Sensex was down 102.47 points or 0.35% at 27,738.09. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently down 41.50 points or 0.48% at 8,573.75. The Sensex and the Nifty, both, hit their lowest level in more than a week.

The Sensex lost 134.85 points or 0.48% at the day's low of 27,701.66 in morning trade, its lowest level since 18 October 2016. The barometer index rose 7.11 points or 0.02% at the day's high of 27,843.62 in early trade. The Nifty lost 52.35 points or 0.6% at the day's low of 8,562.90 in morning trade, its lowest level since 18 October 2016. The index fell 5.35 points or 0.06% at the day's high of 8,609.90 in early trade.

In overseas stock markets, most Asian stocks dropped as investors reacted to a slew of earnings at companies from Samsung Electronics to Nintendo. Data showed that profit growth in China's industrial firms slowed in September from the previous month's rapid pace as several sectors showed weak activity, suggesting the world's second-biggest economy remains underpowered despite emerging signs of stability. Profits in September rose 7.7% to 577.1 billion yuan, slowing sharply from August's 19.5% jump, according to data released by the National Bureau of Statistics (NBS). US stocks edged lower yesterday, 26 October 2016 as health care companies fell and Apple pulled technology companies down.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,120 shares fell and 875 shares rose. A total of 131 shares were unchanged. The BSE Mid-Cap index was currently down 0.6%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.27%. The decline in this index was lower than the Sensex's decline in percentage terms.

Most auto stocks declined. Mahindra & Mahindra (M&M) (down 0.35%), Ashok Leyland (down 0.46%), Eicher Motors (down 0.08%), and Bajaj Auto (down 0.16%) declined.

TVS Motor Company rose 0.79% ahead of its Q2 results today, 27 October 2016.

Hero MotoCorp fell 1.19% after the company reported Q2 results. The company's net profit rose 27.74% to Rs 1004.22 crore on 15.33% increase in total income to Rs 8601.10 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to its highest-ever 16.2% in Q2 September 2016, as against 14.91% in Q2 September 2015 aided by softer commodities and cost control measures.

The company reported highest ever quarterly sales of 18.23 lakh units in Q2 September 2016, up 15.8% compared with 15.74 lakh units in Q2 September 2015.

Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero MotoCorp, said the highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of the company's products. At the same time, the company has also delivered on its commitment of further strengthening its profitability by crossing the threshold Rs 1000 crore in net profit for the first time in a quarter. The domestic market has seen a revival in the past two quarters due to an above-average monsoon and positive consumer sentiment. The trend is expected to continue through the year and likely to result in double-digit growth for the industry. In the global markets, however, the industry continues to face headwinds due to volatile business environment driven by continued weakness in crude prices and sharp depreciation of local currencies.

Meanwhile, in a separate announcement, Hero MotoCorp said that its board of directors approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure. The strategic investment is subject to execution of definitive agreements and completion of certain conditions customary for a transaction of this nature.

Maruti Suzuki India rose 0.33% ahead of its Q2 results today, 27 October 2016.

Telecom stocks were mixed. Reliance Communications (RCom) (up 0.21%) and MTNL (up 0.25%) gained. Bharti Airtel (down 0.74%), Tata Teleservices (Maharashtra) (down 6.83%) and Idea Cellular (down 0.7%) declined.

Shares of Bharti Infratel fell 3.77%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

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