Key benchmark indices suffered severe setback today, 2 November 2016, in sync with weak global stocks following uncertainty over the outcome of the upcoming US presidential election. The barometer index, the S&P BSE Sensex, lost 349.39 points or 1.25% to settle at 27,527.22. The Nifty 50 index lost 112.25 points or 1.3% to settle at 8,514. The Sensex and Nifty hit their lowest closing level in almost four months. After seeing a gap-down opening key indices extended losses as the day progressed.
The broad market depicted weakness with many small and mid-cap stocks suffering sharp slide. There were two losers for every gainer on BSE. 1,967 shares declined and 965 shares rose. A total of 110 shares were unchanged. The BSE Mid-Cap index and the BSE Small-Cap index shed 1.84% each. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The Sensex lost 349.39 points or 1.25% to settle at 27,527.22, its lowest closing level since 8 July 2016. The index lost 375.80 points or 1.35% at the day's low of 27,500.81. The index fell 197.29 points or 0.71% at the day's low of 27,679.32.
The Nifty 50 index lost 112.25 points or 1.3% to settle at 8,514, its lowest closing level since 11 July 2016. The index lost 121.40 points or 1.41% at the day's low of 8,504.85. The index fell 76.75 points or 0.88% at the day's high of 8,549.50.
The total turnover on BSE amounted to Rs 3262.94 crore, lower than turnover of Rs 3318.06 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 2.76%), the S&P BSE Energy index (down 2.47%), the S&P BSE Basic Materials index (down 1.69%), the S&P BSE Finance index (down 1.37%), the S&P BSE Industrials index (down 1.84%), the S&P BSE Realty index (down 2.18%), and the S&P BSE Healthcare index (down 2.15%) underperformed the Sensex.
The S&P BSE Utilities index (down 0.92%), the S&P BSE Power index (down 0.91%), the S&P BSE Auto index (down 1.09%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.07%), the S&P BSE Metal index (down 0.79%), the S&P BSE Telecom index (down 1.06%), the S&P BSE Capital Goods index (down 1.12%), the S&P BSE Bankex (down 1.15%), the S&P BSE FMCG index (down 0.8%), the S&P BSE IT index (down 1.11%), and the S&P BSE Teck index (down 1.14%) and the S&P BSE Consumer Durables index (down 0.38%) outperformed the Sensex.
Bank stocks declined. Among public sector bank stocks, State Bank of India (SBI) (down 2.75%), Canara Bank (down 5.6%), Union Bank of India (down 3.6%), Bank of India (down 4%), Punjab National Bank (down 4.7%) Syndicate Bank (down 3.54%), Indian Overseas Bank (down 1.5%), Bank of Baroda (down 3.26%), Andhra Bank (down 3.28%), Oriental Bank of Commerce (down 5.44%), Dena Bank (down 1.33%), and Indian Bank (down 3.15%), declined.
Among private sector banks, ICICI Bank (down 1.27%), Kotak Mahindra Bank (down 0.12%), Federal Bank (down 2.93%) and HDFC Bank (down 1.09%) declined. IndusInd Bank rose 1.33%. Axis Bank gained 0.05%.
Yes Bank fell 3.1%. The bank announced that it has generated $650 million worth of business outstanding (customer assets) at its IFSC Banking Unit (IBU) in Gujarat International Finance Tec City (GIFT). The announcement was made during market hours today, 2 November 2016. Yes Bank started operations in GIFT City in October 2015.
Index heavyweight Reliance Industries (RIL) fell 2.13% to Rs 1,026. The stock hit high of Rs 1,042.05 and low of Rs 1,021.10 in intraday trade.
Pharma stocks declined. Sun Pharmaceutical Industries (down 2.4%), Alkem Laboratories (down 1.45%), Cadila Healthcare (down 3.24%), Cipla (down 2.55%), Dr Reddy's Laboratories (down 2.21%), Glenmark Pharmaceuticals (down 2.4%), GlaxoSmithKline Pharmaceuticals (down 1.26%), Aurobindo Pharma (down 2.12%) and Wockhardt (down 3.25%) fell.
Lupin slipped 1.29%. 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 yesterday, 1 November 2016.
Meanwhile, the Sensex has dropped for three sessions in a row today, 2 November 2016. The Sensex has dropped 414.29 points or 1.48% in three sessions from a close of 27,941.51 on 28 October 2016. The Sensex has fallen 402.99 points or 1.44% in first two sessions of November 2016 so far (till 2 November 2016). The Sensex has risen 1,409.68 points or 5.39% in calendar year 2016 so far (till 2 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,032.61 points or 22.37%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,550.06 points or 5.33%. The Sensex is off 2,497.52 points or 8.31% from a record high of 30,024.74 hit on 4 March 2015.
Global credit rating agency, Standard & Poor's affirmed India's sovereign ratings, welcoming the country's policy stability and improved monetary credibility, but ruled out any upgrade for this year or in 2017 because of weak public finances and low per capita income. The stance comes despite a push for a ratings upgrade by government officials, who have argued the country has kept its fiscal deficit in check and passed a slew of major economic reforms including a revamp of the goods and services tax (GST). But S&P today, 2 November 2016, stuck to its rating of "BBB-minus" with a "stable" outlook, saying it would need to see more efforts to lower the country's net general government debt level to below 60 percent of gross domestic product.
In overseas markets, global markets dropped as a new poll showing Republican candidate Donald Trump leading the US presidential race spooked investors. Eurozone factories had their most active month for almost three years in October, and raised their prices for the first time in more than a year, according to a survey of purchasing managers released today, 2 November 2016. IHS Markit said its Purchasing Managers Index for the eurozone's manufacturing sector, which is based on a survey of 3,000 companies, rose to 53.5 from 52.6 in September. That was up from its preliminary estimate of 53.3, and the highest since January 2014. A reading above 50.0 signals an increase in activity, while a reading below signals a decline.
US markets closed lower yesterday, 1 November 2016 as investors grappled with a tightening presidential race, economic data, corporate earnings, and the Federal Reserve's monetary policy decision. Polls reportedly show the race between Democratic nominee Hillary Clinton and Republican rival Donald Trump continues to tighten. Another poll reportedly showed Trump taking a one-point lead, while the polling average showed Clinton's lead narrowed to 2.2 percentage points from more than 7 points two weeks ago. Clinton is seen as the more market-friendly candidate by many investors. Meanwhile, the Federal Open Market Committee's (FOMC) two-day meet on monetary policy concludes today, 2 November 2016. The FOMC is widely expected to leave rates unchanged. FOMC in its September meet had kept policy rate unchanged.
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