Strong market breadth

Key benchmark indices were hovering in narrow range in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 239.67 points or 0.88% at 27,513.82. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was up 85 points or 1.01% at 8,518.75. The broad market depicted strength. There were more than four gainers against every loser on BSE. 1,981 shares rose and 476 shares fell. A total of 93 shares were unchanged. The BSE Mid-Cap index was currently up 1.56%. The BSE Small-Cap index was currently up 1.69%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were trading higher as US Federal Bureau of Investigations director James Comey told Congress on 6 November 2016 that the agency would not reopen any investigation into presidential candidate Hillary Clinton's email usage. Investors around the world have been watching the US elections warily, and many have reacted to the prospects of a Donald Trump presidency with horror, concerned about his outlandish and economically questionable proposals.

In US, the S&P 500 ended lower on Friday, 4 November 2016, for a ninth straight day, the longest losing streak for the benchmark index in more than 35 years, as investors stayed on edge ahead of an uncertain US election. The tech-heavy Nasdaq also ended lower for a ninth-consecutive session, while the Dow industrials closed down for a seventh straight day.

The outcome of United States presidential elections of 2016, which will be held tomorrow, 8 November 2016, will have a bearing on global stocks. Presidential election will be held between Democratic party candidate Hillary Clinton and Republican party candidate Donald Trump. The results are expected on the next day of elections.

Back home, power generation stocks edged higher. Jaiprakash Power Ventures (up 4.03%), GMR Infrastructure (up 3.08%), Reliance Infrastructure (up 2.39%), Adani Power (up 1.77%), Tata Power (up 1.54%), Reliance Power (up 1.36%), Torrent Power (up 1.22%), CESC (up 1.13%), NTPC (up 0.95%), JSW Energy (up 0.88%) and NHPC (up 0.38%), edged higher.

State-run Coal India was up 1.76%.

State-run Power Grid Corporation of India was up 0.35%.

Cement shares rose. UltraTech Cement (up 1.78%), Ambuja Cements (up 1.68%) and ACC (up 0.68%), edged higher.

Grasim Industries was up 2.82%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

PNB Housing Finance was trading at Rs 886.55 at 10:54 IST on BSE, a premium of 14.39% over the initial public offer price of Rs 775 per share on its debut on the bourses today, 7 November 2016. On BSE, so far 42.99 lakh shares were traded in the counter. The stock made its debut on the bourses at Rs 863, a premium of 11.35% over its initial public offer (IPO) of Rs 775 per share.

The IPO of PNB Housing Finance saw strong response from investors. The IPO was subscribed 29.55 times. The issue price was fixed at top end of the price band of Rs 750 to Rs 775 per share. PNB Housing Finance is the fifth largest housing finance company (HFC) in India by the size of loan portfolio. The company offers housing loans as well as non-housing loans such as loans against property (LAP), non-residential premises loans (NRPL), lease rental discounting (LRD), and corporate term loans (CTL).

Pfizer gained 2.32% to Rs 1822.55 after net profit rose 52.49% to Rs 126.33 crore on 6.35% rise in total income to Rs 581.96 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours on Friday, 4 November 2016.

Pfizer said that the Q2 results witnessed the full impact of the price reductions announced by the Government between March and June of this year. Revenue has been impacted by Rs 22 crore due to these price reductions with the impact being felt most in mid-tier and tail brands. Excluding the impact of price reductions, revenue growth for Q2 would have been 9%, it added. During Q2 September 2016, the company on completion of requisite formalities and receipt of necessary regulatory approvals has concluded the transfer of four brands for a consideration of Rs 110 crore. The consideration net of direct expenses and adjustment for proportionate allocation of fair value of consideration has been reflected as an exceptional item.

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