Markets end lower; Tata Motors outperforms

After a robust opening, markets were unable to sustain the rally and finished the session on a lower note amid a volatile trading session as investors booked profits in Index heavyweights at higher attractive valuations. Meanwhile, caution ahead of the outcome of the Bihar elections has further dampened the sentiments.

However, a stellar performance by auto shares with Tata Motors emerging as the star performer on the back of better-than-expected JLR sales in US capped the downside.

Provisionally, the Sensex has closed 65 points down at 26,526 and the Nifty has slipped 31 points to end at 8,029.

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(updated at 3:30 PM)

Markets have trimmed gains in the late trades as investors book profits at higher attractive valuations. Technology shares are contributing the most to the losses on the back of an appreciating rupee.

 

At 2:25 PM, the Sensex has gained 47 points to trade at 26,637 and the Nifty was up 4 points to quote at 8,065.

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(updated at 2:25 PM)

Benchmark share indices were trading higher in noon trades on Wednesday with Tata Motors emerging as the top gainer on the back of better-than-expected JLR sales in US. Further, encouraging services PMI data for October also boosted sentiment.

At 1:25pm, the 30-share Sensex was up 112 points at 26,703 and the 50-share Nifty was up 22 points at 8,083.

In the broader market, the BSE MidCap index was up 0.5% while the SmallCap index was up 0.3% each. Market breadth was strong with 1,384 gainers and 1096 losers on the BSE.

"The gains are led by Tata Motors after encouraging overseas JLR sales while other beaten down auto stocks are also witnessing buying interest," said G Chokkalingam, Founder & MD, Equinomics & Research Advisory.

The rupee has gained 14 paise to 65.50 against the US dollar on selling of the American currency by exporters and banks amid strength in the local equities.

ECONOMY

India’s services industry expanded at its fastest pace in eight months in October as new business rose with discounting probably stoking demand, a survey showed on Wednesday. The Nikkei/Markit Services Purchasing Managers’ Index rose to 53.2 in October from September’s 51.3, marking a fourth month above the 50-level that separates growth from contraction.


SECTORS & STOCKS

Except the IT index all other sectoral indices were in the green led by Auto index up 2% followed by others.

In the auto pack, Tata Motors was up over 6% on better-than-expected JLR sales in the US. Meanwhile, Hero MotoCorp has reported 11.25 per cent rise in sales at 6,39,802 units in October, its highest ever in a single month and the stock is up 1.7%. M&M and Bajaj Auto have gained 1.4-2.1% each.  

The HDFC Group has set up a new fund management company, HDFC Capital Advisors, to launch an offshore real estate fund, according to sources in the know. Shares of HDFC Bank and HDFC are up 0.4% each.

Tech Mahindra reported revenue and net profit above Street expectations. The good show was supported by operational efficiency and dollar-rupee conversion gains, along with better business from the US. The stock pared early gains and was down 1% on profit taking. Among other IT peers, TCS and Wipro have lost between 0.1-0.3% amid an appreciating rupee.

DLF has gained 3% after the company recorded a 21% increase in consolidated profit at Rs 131.5 crore during the second quarter of the financial year 2015-16.

GAIL has dropped 0.6% after it posted a 66% decline in net profit for the quarter ended September on the back of lower price realisation in transmission of Liquefied Petroleum Gas (LPG) and other petroleum products.

Metal stocks continue to trade higher on rebound in the commodity prices amid surge in the China markets. Hindalco, Vedanta and Tata Steel have gained 0.3-1% each.

Among others, shares of HSIL were up nearly 5% at Rs 292 after the company announced that its net profit for the quarter ended September 30, 2015 increased 27% to Rs 24.3 crore compared with Rs 19.1 crore in the corresponding quarter last year on the back of lower finance costs.

Shares of Petronet LNG were up nearly 3% at Rs 207 on the Bombay Stock Exchange after the Reserve Bank of India in a release on November 03, 2015 notified that Foreign Portfolio Investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) can now invest up to 30 per cent of the paid up capital of M/s Petronet LNG Limited under the Portfolio Investment Scheme (PIS).

ZF Steering Gear India has surged 9% to Rs 1,494 on the BSE in noon deals after the company reported 71% year on year (YoY) jump in net profit at Rs 13.57 crore for the quarter ended September 30, 2015 (Q2), on back of healthy operational income.