A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, settled with small losses while the Nifty 50 index settled a tad higher. The barometer index, the S&P BSE Sensex fell 53.60 points or 0.19% to settle at 27,876.61. The Nifty rose 0.55 points or 0.01% to settle at 8,626.25. The Sensex settled below the psychologically important 28,000 level. The Sensex had hovered above and below the mark after regaining that level in early afternoon trade. The Sensex hit almost one-week closing low. Key indices saw high intraday volatility throughout the day's trading session as trading resumed after a one-day Diwali Balipratipada holiday yesterday, 31 October 2016.
The Sensex fell 53.60 points or 0.19% to settle at 27,876.61, its lowest closing level since 26 October 2016. The index shed 84.58 points or 0.3% at the day's low of 27,845.63. The index rose 99.59 points or 0.35% at the day's high of 28,029.80.
The Nifty rose 0.55 points or 0.01% to settle at 8,626.25, its highest closing level since 28 October 2016. The index rose 43.90 points or 0.5% at the day's high of 8,669.60. The index fell 11.20 points or 0.13% at the day's low of 8,614.50, its lowest level since 28 October 2016.
The market breadth indicating the overall health of the market was just about positive. On BSE, 1,470 shares rose and 1,442 shares fell. A total of 102 shares were unchanged. The BSE Mid-Cap index fell 0.24%. The fall in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index dropped 0.19%. The fall in this index matches with the Sensex's decline in percentage terms.
Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 0.01%), the S&P BSE Energy index (up 0.19%), the S&P BSE Utilities index (up 0.88%), the S&P BSE Power index (up 0.66%), the S&P BSE Auto index (up 0.4%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.21%), the S&P BSE Metal index (up 3.34%), the S&P BSE Telecom index (up 0.17%), the S&P BSE Basic Materials index (up 1.43%), the S&P BSE Consumer Durables index (up 0.21%), and the S&P BSE Finance index (down 0.04%) outperformed the Sensex.
The S&P BSE Capital Goods index (down 0.64%), the S&P BSE Industrials index (down 0.42%), the S&P BSE Realty index (down 0.63%), the S&P BSE Healthcare index (down 0.83%), the S&P BSE Bankex (down 0.53%), the S&P BSE FMCG index (down 0.76%), the S&P BSE IT index (down 1.19%), and the S&P BSE Teck index (down 1.06%) underperformed the Sensex.
NTPC rose 2.48%. The company announced that in continuation with company's earlier disclosures in respect of Hindustan Urvarak & Rasayn Limited (HURL), a joint venture company formed between NTPC (NTPC) and Coal India (CIL), a supplemental joint venture agreement has been signed on 31 October 2016 amongst NTPC, CIL, Indian Oil Corporation (IOC), Fertilizer Corporation of India (FCIL) and Hindustan Fertilizer Corporation (HFCL) in order to induct IOC, FCIL and HFCL, as joint venture partners and shareholders in HURL. Now, HURL shall also take up revival of Barauni plant of HFCL in addition to revival of Gorakhpur and Sindri plants of FCIL by setting up ammonia urea plants at each locations. The announcement was made after market hours today, 1 November 2016.
Coal India rose 1.18%. IOCL rose 0.46%.
Lupin declined 0.32%. The company announced that it has received final approval for Norgestimate and Ethinyl Estradiol Tablets USP, 0.25 mg/0.035 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Janssen Pharmaceuticals, Inc.'s Ortho-Cyclen 28 Tablets (Norgestimate/Ethinyl Estradiol). The approved product will be manufactured at Lupin's Pithampur facility.
Lupin's Norgestimate and Ethinyl Estradiol Tablets USP, 0.25 mg/0.035 mg are the AB rated generic equivalent of Janssen Pharmaceuticals, Inc.'s Ortho-Cyclen 28 Tablets (Norgestimate/Ethinyl Estradiol). It is indicated for use by females of reproductive potential to prevent pregnancy. Ortho-Cyclen Tablets had US sales of $178.2 million as per IMS MAT June 2016.The announcement was made after market hours today, 1 November 2016.
Eicher Motors jumped 5.36% after total motorcycle sales rose 33% to 59,127 units in October 2016 over October 2015. Sales of motorcycle models with engine capacity upto 350cc rose 35% to 55,188 units in October 2016 over October 2015. Sales of motorcycle models with engine capacity exceeding 350cc rose 6% to 3,939 units in October 2016 over October 2015. Total motorcycle exports rose 95% to 748 units in October 2016 over October 2015. The announcement was made during trading hours today, 1 November 2016.
Separately, total volume of VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors rose 14.42% to 4,560 units in October 2016 over October 2015. The announcement was made after market hours today, 1 November 2016.
Index heavyweight and housing finance major HDFC advanced 2.26% to Rs 1,412. The stock hit high of Rs 1,431.10 and low of Rs 1,377.70 in intraday trade.
Metal and mining stocks rose after the release of encouraging purchasing managers index data from China, the world's largest consumer of steel, copper and aluminum.
Vedanta (up 9.01%), National Aluminium Company (up 0.92%), Hindustan Zinc (up 7.7%), Steel Authority of India (Sail) (up 0.97%), Jindal Steel & Power (up 2.92%), Hindalco Industries (up 4.77%), NMDC (up 3.9%) and Hindustan Copper (up 2.92%) edged higher. JSW Steel (down 0.27%) fell.
Copper edged lower in the global commodities market. High Grade Copper for December 2016 delivery was currently up 0.07% at $2.2065 per pound on the COMEX.
Tata Steel rose 3.6%. The company announced yesterday, 31 October 2016 that ratings agency Brickwork Ratings downgraded the company's credit rating to BWR AA from BWR AA+, with negative outlook for the unsecured non-convertible debenture (NCD) issues of Rs 4000 crore. The ratings agency also downgraded ratings to BWR AA- from BWR AA for the company's unsecured subordinated perpetual debt issues of Rs 2500 crore, with negative outlook. The sudden change of guard at the holding company/group level has not only heightened the management risk for Tata Steel, but also has exposed it to uncertainty over continuity of critical decisions on cost cutting and deleveraging the balance sheet concerning the unprofitable UK operations and restructuring its European business, the ratings agency said. Unless the company takes appropriate measures in this regard, it may lead to a further deterioration in financial profile of the company, as also a rating action, the agency added.
Bank stocks dropped. Among public sector banks, Canara Bank (down 0.84%), Union Bank of India (down 1.9%), Bank of India (down 0.92%), Punjab National Bank (down 0.62%) Syndicate Bank (down 0.75%), Indian Overseas Bank (down 0.19%), Andhra Bank (down 0.27%), Oriental Bank of Commerce (down 0.89%), Bank of Baroda (down 0.51%), Dena Bank (down 1.05%), and Indian Bank (down 1.43%) declined. State Bank of India (SBI) rose 0.21%.
Among private sector banks, Axis Bank (down 2.53%), ICICI Bank (down 0.6%), and Kotak Mahindra Bank (down 1.55%) declined. IndusInd Bank (up 1.29%) and HDFC Bank (up 0.5%) gained.
Yes Bank shed 1.42%. The bank announced yesterday, 31 October 2016 that it has received the approval from Reserve Bank of India (RBI) for appointment of Ashok Chawla as Non-Executive Part-time Chairman of the bank for a period of three years from the date of his taking charge. Accordingly, Chawla took charge as Non-Executive Part-time Chairman of the bank with effect from 30 October 2016 upon the expiry of the term of the current Chairperson of the bank, Radha Singh. Ashok Chawla, an independent director, was appointed on the board on 5 March 2016.
Meanwhile, the Sensex has risen 1,759.07 points or 6.73% in calendar year 2016 so far (till 1 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,382 points or 23.92%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,200.67 points or 4.12%. The Sensex is off 2,148.13 points or 7.15% from a record high of 30,024.74 hit on 4 March 2015.
Among macro economic data, data released by Markit Economics today, 1 November 2016 indicated that the headline seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) climbed to a 22-month peak to 54.4 in October from 52.1 in September supported by stronger contributions from three of its five sub-components - new orders, output and stocks of purchases. The latest reading was indicative of a robust improvement in manufacturing business conditions that was in line with the long-run series average, Markit Economics said.
The growth in the Index of Eight Core Industries stood at 5% in September 2016, stronger than the 3.2% growth seen in August, data released by the government yesterday, 31 October 2016 showed. The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP).
In overseas stock markets, European stocks were trading mixed as upbeat Chinese data lifted market sentiment and investors focused on a fresh batch of earnings reports. Chinese stocks closed higher after the release of encouraging purchasing managers index data from China. Other Asian stocks ended mixed. China's official manufacturing PMI rose to 51.2 in October from 50.4 in September, adding to signs that the world's second-largest economy is stabilizing. China's official non-manufacturing purchasing managers index, a measure of activity outside factory gates, edged up to 54 in October from 53.7 in September. The Caixin manufacturing PMI for China was 51.2 in October, up from 50.1 in September. Japan's central bank largely held fire in a policy update today, 1 November 2016. The Bank of Japan (BOJ) said it would keep its deposit rate steady at -0.1%, and would continue to target a zero yield for 10-year Japan government bonds. Its only notable move was to push back the timeline for achieving 2% inflation by one year, to fiscal 2018.
US stocks closed lower yesterday, 31 October 2016 as stronger-than-expected consumer spending data underlined the view that the economy is growing at a steady pace, while a drop in oil prices and election uncertainty weighed on the minds of investors. The Federal Open Market Committee (FOMC)'s two-day meet on monetary policy will conclude tomorrow, 2 November 2016. FOMC in its September meet had kept policy rate unchanged.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
