Key benchmark indices were trading with small losses after hovering within a narrow range in the negative terrain in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex was down 65.51 points or 0.24% to 27,364.77. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently down 30.65 points or 0.36% at 8,454.30. Selling pressure was witnessed in select mid-cap and small-cap stocks.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,111 shares rose and 587 shares fell. A total of 110 shares were unchanged. The BSE Mid-Cap index was currently off 0.9%. The BSE Small-Cap index was currently off 1.88%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, most Asian stocks declined as investors were spooked by growing uncertainty about the outcome of the US presidential election next week. US stocks closed lower yesterday, 3 November 2016, marking the S&P 500's longest losing streak since the depths of the financial crisis, as Facebook shares slumped and investors fretted over election uncertainty. Fresh polls released yesterday, 3 November 2016 reportedly showed that Democrat Hillary Clinton, who is seen as the status quo candidate by markets, maintained her narrow lead over Republican Donald Trump. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.
Meanwhile, the Bank of England (BOE) scrapped its plan to cut interest rates, which it said could now move up or down, and raised its forecasts for 2017 growth and inflation sharply due to the slide in sterling since Britain's vote to leave the European Union. The BOE's nine policymakers all voted to keep rates on hold yesterday, 3 November 2016. There was also unanimous support to stick with August's bond-buying plans.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 1.9%), Ashok Leyland (up 0.27%), Tata Motors (up 0.73%), Bajaj Auto (up 0.32%) and TVS Motor Company (up 1.17%) gained. Maruti Suzuki India (down 1.98%), Eicher Motors (down 1.36%), and Hero MotoCorp (down 1.95%) declined.
Most realty stocks declined. Sobha (down 2.04%), Unitech (down 1.07%), NBCC (India) (down 1.85%), Oberoi Realty (down 4.03%), and DLF (down 1.64%) edged lower. Indiabulls Real Estate (up 0.38%) and Omaxe (up 0.55%) gained.
State run coal mining major Coal India lost 3.52% to Rs 315.25 on reports that a foreign brokerage has maintained underperform rating on the stock with a target price of Rs 270.
Colgate-Palmolive (India) rose 4.05% to Rs 990 on reports a foreign brokerage has upgraded the stock to outperform from neutral and revised target price on the stock to Rs 1,150 from Rs 1,100 earlier.
On the economic front, the GST council yesterday, 3 November 2016 approved four main tax slabs 5%, 12%, 18% and 28% under a proposed Goods and Services Tax (GST). While there will be two standard tax rates - 12% and 18% - under the GST, half of the items in the consumer price index would not be taxed at all to safeguard the interests of the poor.
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