Weakness continued on the bourses in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was off 230.92 points or 0.87% at 26,425.91. The losses for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently off 57.05 points or 0.71% at 8,008.75. The Nifty was currently trading above the psychological 8,000 level, having alternately moved above and below that mark since afternoon trade. Earlier, the Nifty had reclaimed the psychological 8,000 level soon after falling below that level in afternoon trade. The Nifty hit 4-1/2-week low when it dropped 70.20 points or 0.87% at the day's low of 7,995.60 in mid-afternoon trade. The Sensex hit 4-week low when it dropped 278.57 points or 1.04% at the day's low of 26,378.26 in mid-afternoon trade.
The latest slide on domestic bourses materialized after a monthly survey showed a further loss of growth momentum across the Indian manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) hit 22-month low of 50.7 in October 2015 from a reading of 51.2 in September 2015. A reading above 50 indicates expansion in activity, while one below that level signals contraction.
The market breadth indicating the overall health of the market was weak. On BSE, 1,664 shares fell and 897 shares rose. A total of 124 shares were unchanged. The BSE Mid-Cap index was currently down 0.39%. The BSE Small-Cap index was currently down 0.66%. The decline in both these indices was lower in percentage terms than the Sensex's fall.
Meanwhile, Revenue Secretary Hasmukh Adhia was quoted as saying that the government could cut corporate tax rate to 25% from 30% before a previous deadline of four years. Adhia also said that the government will provide a roadmap for ending corporate tax exemptions shortly, according to reports. Finance Minister Arun Jaitley, while presenting his annual budget in February, announced that the government would gradually pare corporate tax by 5 percentage points during the next four years and roll back various tax exemptions.
In overseas stock markets, European stocks edged lower as soft Chinese factory surveys and US consumer spending data raised concerns over the global economic outlook. In Asia, Chinese and Japanese stocks fell as China's manufacturing data pointed to slowing activity. US stocks drifted lower during the previous trading session on Friday, 30 October 2015, after a batch of weaker economic reports and mixed corporate earnings.
Index heavyweight HDFC shed 3.4% to Rs 1,214.45. The stock hit high of Rs 1,266.65 and low of Rs 1,213.30 so far during the day.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 2.19%), GVK Power & Infrastructure (down 1.01%), NHPC (down 1.38%), Tata Power Company (down 0.65%), NTPC (down 1.39%), Adani Power (down 1.43%), Power Grid Corporation of India (down 0.58%), Reliance Infrastructure (down 1.45%) and Reliance Power (down 1.79%) declined.
Capital goods stocks dropped. BEML (down 3.93%), Havells India (down 0.45%), Crompton Greaves (down 2.85%) and Siemens (down 1.99%) declined. Bharat Heavy Electricals (Bhel) (up 0.13%) and Thermax (up 0.87%) gained.
L&T dropped 2.3% to Rs 1,379, with the stock extending post-result slide after the company's management in a post earnings conference call reduced the company's order inflow guidance to around 5-7% for the current financial year as compared to earlier guidance of around 15%. Revenue growth guidance was also reduced to around 12.5% against earlier of around 15%. Lower commodity prices, weakening currency, lower demand worldwide and execution challenges were the major reasons for the reduction in guidance. The L&T management expects a significant pick up in business opportunities to happen only in the year ending 31 March 2017 (FY 2017). The L&T stock price lost 4.1% to settle at Rs 1,411.15 on BSE on Friday, 30 October 2015, after the company's Q2 September 2015 results disappointed investors.
Oriental Bank of Commerce jumped 8.08% after the state-run bank's net profit rose 3.39% to Rs 301.31 crore on 2.35% growth in total income to Rs 5454.13 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours today, 2 November 2015. On absolute basis, Oriental Bank of Commerce's gross non-performing assets (NPAs) stood at Rs 8557.76 crore as on 30 September 2015, slightly lower than Rs 8577.04 crore as on 30 June 2015 and sharply higher than Rs 6643.80 crore as on 30 September 2014. The ratio of gross NPAs to gross advances stood at 5.7% as on 30 September 2015, lower than 5.85% as on 30 June 2015 and higher than 4.74% as on 30 September 2014. The ratio of net NPAs to net advances stood at 3.55% as on 30 September 2015 as against 3.76% as on 30 June 2015 and 3.29% as on 30 September 2014.
The bank's provisions and contingencies declined 11.19% to Rs 569.42 crore in Q2 September 2015 over Q2 September 2014. Provision coverage ratio as on 30 September 2015 stood at 61.53%.
Adani Ports and Special Economic Zone gained 1.16% after the company reported good Q2 results. The company's consolidated net profit rose 16% to 667 crore on 6% rise in total income to Rs 1986 crore in Q2 September 2015 over Q2 September 2014. Consolidated cargo handled by the company rose 4% to 36 million metric tonne (MMT) in Q2 September 2015 over Q2 September 2014. The result was announced during market hours today, 2 November 2015.
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