The key equity barometers once again slipped into negative terrain in mid-afternoon trade. Gains in IndusInd Bank and ITC were set off by losses in TCS and Reliance. At 13:23 IST, the barometer index, the S&P BSE Sensex, was down 18.79 points or 0.05% at 40,110.26. The Nifty 50 index was down 4.70 points or 0.04% at 11,872.75.
The broader market continued to outperformed the benchmark indices. The S&P BSE Mid-Cap index was up 0.32%. The S&P BSE Small-Cap index was up 0.46%.
The market breadth was tilted towards the buyers. On the BSE, 1300 shares rose and 1082 shares fell. A total of 174 shares were unchanged. In Nifty 50 index, 23 stocks advanced and 27 stocks declined.
Stocks in focus:
TCS fell 2.77% to Rs 2207.40. Reliance Industries fell 1.06% to Rs 1448.65.
ITC rose 1.67% to Rs 261.85.
IndusInd Bank rose 1.67% to Rs 1,333.60. The Bank informed that pursuant to the recommendation of the nomination and remuneration committee (NRC), the board of directors of the bank, at its meeting held on 30 October 2019 has finalized a potential candidate for the position of MD & CEO. The candidate will replace Ramesh Sobti, the current MD and CEO of the bank.
Mr. Sobti's tenure comes to end in March 2020, when he turns 70. He joined the bank in February 2008. The RBI norms stipulate 70 as retirement age for managing directors at banks.
Ashok Leyland fell 1.24% to Rs 75.75. The auto company reported a 35% fall in total vehicle sales to 9857 units in October 2019 as against 15149 units in October 2018. The company's net sales grew 12.27% to 9857 in October 2019 as against 8,780 units in September 2019.
Maruti Suzuki India rose 1.03% to Rs 7,635.10 after the car major reported 25.11% increase in total sales in October 2019 compared with 1.22 lakh units in September 2019. The company's total auto sales rose 4.5% to 1.53 lakh units in October 2019 over October 2019.
Mahindra & Mahindra (M&M) fell 3.83% to Rs 582.90. M&M reported 11% decline in total auto sales, selling 51,896 units in October 2019 as against 58,416 units in October 2018.
M&M recorded 19.73% increase in total sales from 43,343 units in September 2019. M&M's Farm Equipment Sector (FES) reported 4% fall in total tractor sales to 47,376 units in October 2019 as against 45,433 units in October 2018.
Bajaj Auto fell 0.50% to Rs 3230.40. The company reported a 9% decline in total auto sales, selling 4.63 lakh units in October 2019 as against 5.06 lakh units October 2018. However, the total auto sales rose 15% on a month-on-month basis from 4.02 lakh units in September 2019.
In a separate announcement post trading hours yesterday, 31 October 2019, Bajaj Auto informed about the settlement of a decade old patent dispute with TVS Motor. Both, TVS Motor and Bajaj Auto have mutually agreed to withdraw the pending proceedings and release each other from all liabilities, claims, demands and actions in respect of the pending proceedings.
Meanwhile, TVS Motor Company edged 0.87% lower to Rs 480.20.
Dr. Reddy's Laboratories fell 1% to Rs 2755. The company reported 117% jump in net profit to Rs 1,093 crore on a 26% increase in revenue to Rs 4,801 crore in Q2 September 2019 over Q2 September 2018.
The drugmaker's revenue was aided by a tax write-back of Rs 330 crore and a licence fee worth Rs 720 crore for selling territory rights for two neurology brands to U.S.-based Upsher-Smith Laboratories, the filing said.
Yes Bank fell 3.62% to Rs 67.90. A global brokerage continued to maintain its underweight rating on the stock with a target of Rs 55 per share. It believes the risk reward is unattractive.
The foreign broking house views the bank's $1.2 billion capital raise from a global investor as a positive as it would improve the common equity tier (CET) 1 ratio - a measure of bank solvency - by 260 bps. It feels this step will limit the downside, but expects a gradual turnaround to limit the upside.
Yes Bank will declare its earnings for the second quarter of FY20 today.
Shares of Bharti Airtel slipped 0.44% to Rs 372.75 after Standard & Poor's reportedly placed the company's ratings on credit watch negative following a Supreme Court order on unpaid regulatory dues. According to S&P, the company may not be able to absorb the payout.
Foreign market:
Overseas, European stocks were trading higher as investors await corporate earnings and monitor global trade developments.
Asian stocks were mostly higher Friday amid renewed concerns over the potential for a long-term trade deal between China and the U.S.
A private survey of factory activity in China showed manufacturing activity in the country expanded more than expected in October. The Caixin/Markit Purchasing Managers's Index (PMI) for the manufacturing sector rose from 51.4 in September to 51.7 in October.
The US stock market finished session lower on Thursday, 31 October 2019, on skepticism about a U.S.-China trade truce deal and weakening manufacturing data. Concerns around trade and the economy dampened the enthusiasm around strong earnings from Apple and Facebook.
Concerns over trade tensions resurfaced after reports that Chinese officials are doubtful that they will be able to reach a comprehensive, long-term trade deal with the U.S. The preliminary deal was meant to be signed at the APEC meeting in Chile, but the South American country announced this week that it will no longer be hosting. President Donald Trump tweeted Thursday "China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal."
The tariff war between the world's two biggest economies has disrupted supply chains and roiled financial markets for more than a year.
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