Key equity indices declined on Tuesday, as investors locked profits after seven-day rising streak. The barometer index, the BSE Sensex fell 53.73 points or 0.13% to close at a 40,248.23, as per the provisional closing data. The Nifty 50 index fell 22.70 points or 0.19% to 11,918.60, as per the provisional closing data.
The BSE Sensex rose 3.28% in seven trading sessions to end at its record high of 40,301.96 in yesterday's session from a recent closing low of 39,020.39 on 24 October 2019.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 0.80% while the S&P BSE Small-Cap index fell 0.32%.
The market breadth was negative. On the BSE, 1017 shares rose and 1462 shares fell. A total of 177 shares were unchanged. In Nifty 50 index, 23 stocks advanced and 27 stocks declined.
The IHS Markit India Services Business Activity Index rose to 49.2 in October 2019 from 48.7 in September 2019.
The Composite PMI Output Index fell from 49.8 in September 2019 to 49.6 in October 2019.
The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month and below 50 an overall decrease.
The Nifty Metal index fell 0.98% at 15,517.15, as the index witnessed some profit booking. The index rose 5.65% in two trading sessions to end at 2642.15 in yesterday's session from a recent closing low of 2500.75 on 31 October 2019. The recent rally in the index was buoyed by the positive developments US-China trade war front.
Hindustan Copper (down 3.34%), Steel Authority of India (down 3.1%), Jindal Steel & Power (down 2.11%), Hindustan Zinc (down 1.69%), JSW Steel (down 1.54%) and National Aluminium Company (down 0.43%) declined.
NMDC (up 1.55%), Hindalco Industries (up 0.46%) and Vedanta (up 0.19%) advanced.
Earnings in focus:
NOCIL lost 7.18% to Rs 109.85. The company reported 3.94% rise in consolidated net profit to Rs 54.93 crore on 22.93% fall in total income to Rs 211.80 crore in Q2 September 2019 over Q2 September 2018.
Indian Overseas Bank slumped 11.27% to Rs 10.63. The bank reported net loss of Rs 2253.64 crore in Q2 September 2019 as compared to net loss of Rs 487.26 crore in Q2 September 2018. Total income fell 6.06% to Rs 5024 crore in Q2 September 2019 over Q2 September 2018.
Future Enterprises jumped 7.62% to Rs 26.85. The company announced a decent Q2 numbers during market hours today. On consolidated basis, company's net profit jumped 30.65% to Rs 21.78 crore on a 6.11% rise in revenue from operations to Rs 1699.84 crore in Q2 September 2019 over Q2 September 2018.
Dabur India rose 4.80% to Rs 481.80. The FMCG company reported a 6.91% rise in consolidated net profit to Rs 403.64 crore on 4.09% rise in net sales to Rs 2,211.97 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours today, 5 November 2019.
Punjab National Bank (PNB) fell 4.99% to Rs 64.80. The bank reported its Q2 earnings during market hours today. The bank reported a net profit of Rs 507.05 crore in Q2 September 2019 as against a net loss of Rs 4532.35 crore in Q2 September 2018.
The ratio of gross NPAs to gross advances stood at 16.76% as on 30 September 2019 as against 16.49% as on 30 June 2019 and 17.16% as on 30 September 2018. The ratio of net NPAs to net advances stood at 7.65% as on 30 September 2019 as against 7.17% as on 30 June 2019 and 8.9% as on 30 September 2018.
Apollo Tyres slipped 2.80% to Rs 108.45. On consolidated basis, company's net profit declined 43.12% to Rs 83.07 crore on a 6.35% decline in revenue from operations to Rs 3926.06 crore in Q2 September 2019 as against Q2 September 2018.
Berger Paints fell 0.83% to Rs 499.40. The paint company reported its Q2 numbers during market hours today. On consolidated basis, company's net profit jumped 67.1% to Rs 194.7 on a 7.3% rise in revenue from operations to Rs 1598.6 crore in Q2 September 2019 over Q2 September 2018.
Bharat Electronics slumped 5.23% to Rs 113.20 after consolidated net profit fell 40.9% to Rs 343.85 crore on a 19.1% decline in net sales to Rs 2663.57 crore in Q2 September 2019 over Q2 September 2018. The company's order book as on 1 October 2019 stood at Rs 56,178 crore, of which orders worth Rs 7088 crore were received during the quarter ended on 30 September 2019.
Stocks in spotlight:
Yes Bank rose 3.71% to Rs 68.55. According to the bulk deal data, Rakesh Jhunjhunwala, purchased 1,29,50,000 shares, or 0.51% stake, in Yes Bank at an average price of Rs 67.10 on the BSE yesterday, 4 November 2019.
InterGlobe Aviation rose 1.46% to Rs 1457. Reports suggested that the company and Qatar Airways will make a strategic business announcement on 7 November 2019. IndiGo is planning an aggressive push to more international destinations and the airline's CEO Ronojoy Dutta and Qatar Airways CEO Akbar Al Baker will talk about the vision and future for both the airlines, reports suggested.
Qatar Airways CEO later confirmed to the media that he has no plans for making any investment in IndiGo.
Mahindra & Mahindra fell 1.06% to Rs 580.25. M&M announced the proactive inspection & replacement of suspension component, on a limited batch of XUV300 vehicles manufactured till 19 May 2019. The inspection and subsequent rectification will be carried out free of cost for all XUV300 customers, who will be individually contacted by the company.
Bajaj Finance rose 2.39% to Rs 4214.25. The NBFC said that the special committee of the board has at its meeting held yesterday authorized the opening of the qualified institutions placement from 4 November 2019. The company's special committee has recommended a floor price of Rs 4,019.78 per equity share. The company may offer such discount on the floor price as may be approved by the special committee.
In a separate announcement, Bajaj Finance said that a meeting of the special committee is scheduled to be held on 7 November 2019 to consider and approve the issue price, including a discount for the equity shares to be allotted to qualified institutional buyers, pursuant to the issue.
Varun Beverages surged 12.65% to Rs 709.40. A global brokerage has maintained buy rating with a price target of Rs 860 per share. The company has posted strong growth in the international segment and it remains as our preferred pick in the consumer space, the brokerage said.
India on Monday declined to join a 16-nation grouping led by China known as the Regional Comprehensive Economic Partnership (RCEP).
RCEP is a proposed agreement between the member states of the Association of Southeast Asian Nations (Asean) and its free trade agreement (FTA) partners. The pact aims to create an integrated market with 16 countries, making it easier for products and services of each of these countries to be available across this region. The RCEP countries include the 10 members of the Association of Southeast Asian Nations, plus China, Japan, South Korea, Australia and New Zealand.
A summit of the leaders of RCEP left open the door for India to still join if it can resolve issues before the deal is set to be signed in 2020.
Overseas, most European shares were trading higher as investors awaited updates on a potential U.S.-China trade deal and monitored global economic developments.
New data published by the British Retail Consortium (BRC) on Tuesday showed that consumer spending in the U.K. saw its strongest year-over-year increase in October for six months. However, the organization warned that sales growth over a 12-month period fell to a new low of 0.1%.
PMI data from IHS Markit showed that the euro zone's manufacturing sector continued to contract during October.
Back in Asia, stocks ended higher following record closes overnight on Wall Street. A private survey of China's services sector showed activity slowing to a eight month low in October. The Caixin/Markit services Purchasing Managers' Index (PMI) for October came in at 51.1 - its lowest reading since February. The 50-point level separates expansion from contraction in PMI readings.
The US stock market finished session at fresh record high on Monday, 4 November 2019, as investors risk sentiments boosted up on hopes of a U.S.-China trade deal, third-quarter earnings season, and an improving U.S. economy.
Media reports suggested that US President Donald Trump has invited his Chinese counterpart Xi Jinping to sign the phase one of a bilateral trade deal when it is agreed upon.
The U.S. market commenced trading with firm footing after Mr. Ross's comments reignited hopes that an initial agreement is in the cards. The U.S. Commerce Secretary Wilbur Ross said on Sunday that U.S.-China trade deal expected to be signed between U.S. President Donald Trump and Chinese President Xi Jinping. Ross said the agreement could be reached by the two leaders in one of several locations, including Iowa, Alaska, Hawaii or somewhere in China.
The deal was originally anticipated to be inked at this month's Asia-Pacific Economic Cooperation summit in Chile, an event that has since been canceled due to protests in the country. Last month, the U.S. and China agreed to finalize the first phase of a trade agreement, which includes a pause in tariff escalation and China buying U.S. agriculture products.
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