Side counters tumble

A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex was down 99.61 points or 0.36% to 27,330.67. The Nifty 50 index was currently down 42 points or 0.49% at 8,442.95. Side counters witnessed major selling pressure.

The Sensex fell 100.17 points, or 0.37% at the day's low of 27,330.11 in mid-morning trade, its lowest level since 8 July 2016. The index rose 68.63 points, or 0.25% at the day's high of 27,498.91 in early trade. The Nifty fell 41.90 points, or 0.49% at the day's low of 8,443.05, its lowest level since 11 July 2016. The index rose 19.05 points, or 0.22% at the day's high of 8,504.

In overseas stock markets, Asian stocks declined as investors were spooked by growing uncertainty about the outcome of the US presidential election next week. US stocks closed lower yesterday, 3 November 2016, marking the S&P 500's longest losing streak since the depths of the financial crisis, as Facebook shares slumped and investors fretted over election uncertainty. Fresh polls released yesterday, 3 November 2016 reportedly showed that Democrat Hillary Clinton, who is seen as the status quo candidate by markets, maintained her narrow lead over Republican Donald Trump. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics. Meanwhile, the Bank of England (BOE) scrapped its plan to cut interest rates, which it said could now move up or down, and raised its forecasts for 2017 growth and inflation sharply due to the slide in sterling since Britain's vote to leave the European Union. The BOE's nine policymakers all voted to keep rates on hold. There was also unanimous support to stick with August's bond-buying plans.

Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 2,031 shares declined and 489 shares advanced. A total of 97 shares were unchanged. The BSE Mid-Cap index was currently off 1.84%. The BSE Small-Cap index was currently off 2.53%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

FMCG shares were mixed. Tata Global Beverages (down 2.02%), Godrej Consumer Products (down 1.75%), Bajaj Corp (down 1.18%), Procter & Gamble Hygiene & Health Care (down 0.98%), Jyothy Laboratories (down 0.83%), Nestle India (down 0.55%), GlaxoSmithKline Consumer Healthcare (down 0.54%) and Marico (down 0.13%), edged lower. Britannia Industries (up 0.53%), Dabur India (up 1.82%), Hindustan Unilever (up 2.17%) and Colgate Palmolive (India) (up 4.66%), edged higher.

Most capital goods shares edged lower. Jindal Saw (down 3.38%), Reliance Defence and Engineering (down 2.91%), Havells India (down 2.62%), AIA Engineering (down 2.11%), Crompton Greaves (down 1.76%), Punj Lloyd (down 1.62%), Siemens (down 1.41%), BEML (down 1.34%), ABB India (down 1.25%), Suzlon Energy (down 1.1%), GE T&D India (down 1.05%), SKF India (down 1%), Bharat Electronics (down 0.85%), Lakshmi Machine Works (down 0.78%), Bharat Heavy Electricals (down 0.73%) and Praj Industries (down 0.62%), edged lower. Thermax (up 0.08%) and GE Power India (up 0.35%), edged higher.

Engineering and construction major L&T fell 1.34% to Rs 1,425.25. Media reports suggested that the government is selling stake in L&T via block deal mechanism on the stock exchanges today, 4 November 2016. As per reports, the government proposes to offload up to 3% stake in the company held under Specified Undertaking of the Unit Trust of India (Suuti). The base price for the share sale has been set at Rs 1,415.66 per share, about 2% discount to the stock's closing price of Rs 1,444.55 on the BSE yesterday, 3 November 2016, reports added. Suuti currently holds 8.14% stake in L&T as per the shareholding pattern as on 30 September 2016.

Magma Fincorp lost 15.14% after consolidated net profit rose 3.66% to Rs 50.40 crore on 1.72% decline in total income from operations to Rs 600.16 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 3 November 2016.

Esab India advanced 4.42% after net profit rose 61.23% to Rs 9.98 crore on 4.26% growth in net sales to Rs 120.19 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 3 November 2016.

Meanwhile, the GST council yesterday, 3 November 2016 approved four main tax slabs 5%,12%, 18% and 28% under a proposed Goods and Services Tax (GST). While there will be two standard tax rates - 12% and 18% - under the GST, half of the items in the consumer price index would not be taxed at all to safeguard the interests of the poor.

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