Key indices continue to hover in positive zone

Capital Market

A bout of volatility was seen in afternoon trade as the key benchmark indices retained positive zone. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 105.46 points or 0.4% at 26,696.05. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 18.90 points or 0.23% at 8,079.60. Data showing acceleration in growth in India's services sector last month and gains in Asian stocks aided upmove on the domestic bourses.

The market breadth indicating the overall health of the market was positive. On BSE, 1,382 shares rose and 1,077 shares fell. A total of 149 shares were unchanged. The BSE Mid-Cap index was currently up 0.48%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.26%, underperforming the Sensex.

The outcome of a monthly survey showed that growth in India's services sector accelerated last month on the back of a pick up in new business. The seasonally adjusted Nikkei Services Business Activity Index reached eight-month high of 53.2 in October 2015. Services business sentiment regarding the 12-month outlook for activity remained positive in October. The degree of confidence signalled was the strongest since July.

In overseas stock markets, Chinese stocks led gains in Asian equities after China's President Xi Jinping made economy-friendly comments and as the Chinese government reportedly unveiled proposals for a five-year financial market reform plan. A signal that the European Central Bank (ECB) stands ready to take more accommodative action also lifted sentiment in Asian markets. In mainland China, the Shanghai Composite ended with gains of 4.31%. Hong Kong's Hang Seng index was currently up 2.26%. Xi was quoted as saying that China can maintain annual economic growth of around 7% over the next five years. The Chinese President, however, cautioned that there are uncertainties, including weak global trade and high domestic debt, according to media reports.

Meanwhile, ECB President Mario Draghi reiterated in a speech yesterday, 3 November 2015, that ECB policy makers are ready to act on low-inflation risks if necessary. In October, Draghi had said the central bank might announce further measures as soon as December.

US stocks rose for a second straight day yesterday, 3 November 2015, as strong monthly auto sales data for October 2015 boosted investor sentiment. The tech-heavy Nasdaq Composite Index attained a record closing high.

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Maruti Suzuki India rose 0.91% after its Japanese parent Suzuki Motor Corporation lifted its full year forecast of operating income and ordinary income at the time of announcement of its second quarter September 2015 results. Suzuki also raised its full year forecast of net income attributable to owners of the parent. Suzuki said that its overseas net sales increased during the six months ended 30 September 2015, mainly owing to the increase in sales in India and Pakistan. Japanese parent Suzuki Motor Corporation holds 56.21% stake in Maruti Suzuki India (as per the shareholding pattern as on 30 September 2015).

Suzuki left its full year net sales growth forecast unchanged at 2.8%.

Private sector bank stocks were mixed. Kotak Mahindra Bank (down 0.41%), ICICI Bank (down 0.48%) and Axis Bank (down 0.03%) declined. HDFC Bank (up 0.56%), IndusInd Bank (up 0.25%) and Yes Bank (up 0.63%) rose.

PSU bank stocks rose. State Bank of India (SBI) (up 1.63%), Punjab National Bank (up 1.34%), Bank of Baroda (up 2.04%), Canara Bank (up 0.91%), Bank of India (up 0.83%) and Union Bank of India (up 3.34%) gained.

FMCG stocks rose. Hindustan Unilever (up 1.08%), Jyothy Laboratories (up 1.07%), Britannia Industries (up 0.17%), Emami (up 0.53%), GlaxoSmithkline Consumer Healthcare (up 0.56%), Dabur India (up 0.13%), Nestle India (up 0.09%), Tata Global Beverages (up 0.84%), Procter & Gamble Hygiene and Health Care (up 0.09%) rose.

Colgate-Palmolive (India) (down 0.95%), Bajaj Corp (down 0.66%), Godrej Consumer Products (down 0.49%) and Marico (down 0.67%) fell.

Aegis Logistics tumbled 10.59% after consolidated net profit rose 3.8% to Rs 26.61 crore on 66.8% decline in net sales to Rs 494.49 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 3 November 2015.

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First Published: Nov 04 2015 | 1:23 PM IST

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