A bout of volatility was witnessed in mid-morning trade as key benchmark indices trimmed losses after hitting 5-week low in morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was off 144.42 points or 0.54% at 26,408.50. The 50-unit CNX Nifty was off 45.50 points or 0.57% at 7,994.70. The Nifty was currently hovering below the psychological 8,000 mark. The Nifty alternately moved above and below the psychological 8,000 mark after falling below that level in morning trade.
The Sensex shed 179.44 points or 0.67% at the day's low of 26,373.48 in morning trade, its lowest level since 1 October 2015. The Nifty also hit 5-week low when it fell 58.30 points or 0.72% at the day's low 7,981.90 in morning trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,423 shares fell and 775 shares rose. A total of 102 shares were unchanged. The BSE Mid-Cap index was currently down 0.63%. The BSE Small-Cap index was currently down 0.75%. The decline in both these indices was higher than the Sensex's fall in percentage terms.
In overseas markets, Chinese stocks edged higher for the second day in a row on speculation Chinese authorities will roll out a trading link between the Hong Kong and Shenzhen stock markets. In mainland China, the Shanghai Composite was currently up 2.7%. Japanese stocks rose on optimism that a weaker yen will boost the nation's exports. US stocks edged lower yesterday, 4 November 2015, as Federal Reserve Chairwoman Janet Yellen hinted that a 25 basis point rate hike in December would not derail the economy or the housing market. New York Fed President William Dudley also struck a hawkish tone, saying he agreed with Fed Chairwoman that a December rate hike is a live possibility.
Meanwhile, investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets.
IT stocks declined. Tech Mahindra (down 0.79%), HCL Technologies (down 0.2%), TCS (down 1.01%), Oracle Financial Services Software (down 0.18%), MphasiS (down 0.27%) and Wipro (down 0.42%) edged lower. Infosys rose 0.12%.
Capital goods stocks dropped. BEML (down 1.09%), Bharat Heavy Electricals (Bhel) (down 0.72%), Havells India (down 0.04%), Thermax (down 0.45%), Crompton Greaves (down 2.81%) and Siemens (down 0.64%) declined.
L&T rose 0.2% after the company announced that its construction division won orders worth Rs 2048 crore across various business verticals in October 2015. The company announced during market hours today, 5 November 2015.
Bank of Baroda dropped 1.53% at Rs 160.95. Bank of Baroda has reduced interest rate on domestic term deposits including NRE deposits for deposits above Rs 1 crore across various maturities in the range of 25 to 60 basis points with effect from 5 November 2015.
ICICI Bank shed 1.08% and Axis Bank lost 2.01% after media reports said that ICICI Bank, Axis Bank and Standard Chartered are seeking to sell off some of the about $3.5 billion in loans extended to Essar Group's holding company Essar Global. According to media reports, the Essar Group has piled up billions of dollars in loans across banks in India and the UK to finance various projects, including steel plants, refineries, and power plants.
Pratibha Industries rose 4.33% after the company said it secured a work order worth Rs 1023.62 crore from Rural Water Supply and Sanitation Department, Government of Telangana. The project is to be completed within 30 months from the date of commencement. The announcement was made during trading hours today, 5 November 2015.
JK Lakshmi Cement lost 3.5% after the company reported net loss of Rs 14.95 crore in Q2 September 2015 compared with net profit of Rs 30.61 crore in Q2 September 2014. JK Lakshmi Cement's total income rose 13.57% to Rs 651.68 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 4 November 2015.
JK Lakshmi Cement said that the company's profitability in Q2 September 2015 was adversely affected mainly due to additional burden of interest and depreciation on account of commissioning of first phase of the company's Greenfield cement plant at Durg in March 2015. JK Lakshmi Cement said that the work on the company's two grinding units projects in Gujarat and Odisha are progressing satisfactorily.
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