A recovery in stocks of state-run banks helped key benchmark indices trim losses in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was off 31.62 points or 0.12% at 27,439.19. The 50-unit CNX Nifty was currently off 16.70 points or 0.2% at 8,278.75.
The Sensex and the Nifty reversed direction after both these key benchmark indices struck 9-1/2-week high at the onset of the trading session. The Sensex fell 77.23 points, or 0.28% at the day's low of 27,393.58 in afternoon trade, its lowest level since 21 October 2015. The barometer index jumped 147.33 points, or 0.53% at the day's high of 27,618.14 at the onset of the trading session, its highest level since 20 August 2015. The Nifty fell 31.90 points, or 0.38% at the day's low of 8,263.55 in afternoon trade, its lowest level since 21 October 2015. The index rose 40.85 points, or 0.49% at the day's high of 8,336.30 at the onset of the trading session, its highest level since 20 August 2015.
The market breadth indicating the overall health of the market was weak. On BSE, 1,584 shares declined and 940 shares rose. A total of 134 shares were unchanged. The BSE Mid-Cap index was off 0.28%. The BSE Small-Cap index was off 0.46%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Pharmaceutical shares were mixed. Cadila Healthcare (down 2.47%), Strides Arcolab (down 2.22%), Glenmark Pharmaceuticals (down 1.89%), Lupin (down 1.52%), Dr Reddy's Laboratories (down 0.58%), GlaxoSmithKline Pharmaceuticals (down 0.54%) and Cipla (down 0.04%), edged lower. Wockhardt (up 0.18%), Aurobindo Pharma (up 0.21%), Sun Pharmaceutical Industries (up 0.36%), Divi's Laboratories (up 0.41%), Piramal Enterprises (up 0.50%) and IPCA Laboratories (up 2.10%), edged higher.
Capital goods shares were mixed. Jindal Saw (down 3.06%), Punj Lloyd (down 2.37%), BEML (down 1.43%), AIA Engineering (down 1.28%), Pipavav Defence and Offshore Engineering Company (down 1.03%), Lakshmi Machine Works (down 0.82%), Bharat Electronics (down 0.78%), ALSTOM India (down 0.64%), Alstom T&D India (down 0.59%), Praj Industries (down 0.33%) and SKF India (down 0.05%), edged lower. Havells India (up 0.14%), Thermax (up 0.37%), Larsen & Toubro (up 0.94%), Siemens (up 0.96%), Suzlon Energy (up 1.08%), Crompton Greaves (up 1.23%), ABB India (up 1.37%) and Bharat Heavy Electricals (up 3.46%) edged higher.
The government has put out a draft national capital goods policy, seeking comments and suggestions on the various proposals. The draft proposals released by the Department of Heavy Industry include incentivizing foreign direct investment in high technology manufacturing, increasing investment allowance to 25% from 15% over five years, interest subvention scheme for SMEs among others. The Department of Heavy Industry has sought comments on the draft policy by 31 October 2015.
Gujarat State Fertilizers & Chemicals surged 9.65% after net profit rose 14.7% to Rs 142.64 crore on 18.9% growth in net sales to Rs 1762.18 crore in Q2 September 2015 over Q2 September 2014. The Q2 result was announced after market hours on Friday, 23 October 2015.
In overseas stock markets, Asian stocks edged higher after China's central bank unexpectedly cut interest rates and lenders' reserve requirements in a bid to lower corporate financing costs and pump liquidity into the economy. After close of trading hours in Asia on Friday, 23 October 2015, the People's Bank of China announced reduction in one-year lending rate by 25 basis points to 4.35% and cut its one-year deposit rate by 25 basis points to 1.5%. It also announced reduction in banks' reserve-requirement ratio requirement. US stocks rallied during the previous trading session on Friday, 23 October 2015, after a surprise interest-rate cut from the People's Bank of China and a string of better-than-expected earnings from heavyweight tech companies.
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