Volatility ruled the roost in early afternoon trade as the key benchmark indices once again regained positive zone soon after reversing intraday gains. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 31.75 points or 0.12% to 27,558.97. The Nifty 50 index was currently up 11.15 points or 0.13% at 8,525.15. Subdued Asian stocks following uncertainty over the outcome of the upcoming US presidential election triggered a negative start on the domestic bourses. The Sensex hit its lowest level in over 16 weeks. The Nifty hit its lowest level in over 15 weeks. The Sensex rose 73.52 points or 0.27% at the day's high of 27,600.74 in mid-morning trade. The barometer index fell 80.91 points or 0.29% at the day's low of 27,446.31 at onset of the day's trading session, its lowest level since 11 July 2016. The Nifty rose 23.65 points or 0.28% at the day's high of 8,537.65 in mid-morning trade. The index fell 24.40 points or 0.29% at the day's low of 8,489.60 at onset of the day's trading session, its lowest level since 19 July 2016.
The market breadth indicating the overall health of the market was strong. On BSE, 1,689 shares advanced and 979 shares declined. A total of 124 shares were unchanged. The BSE Mid-Cap index was currently up 0.03%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.24%, outperforming the Sensex.
Auto stocks rose. Bajaj Auto (up 0.47%), Tata Motors (up 0.14%), Maruti Suzuki India (up 0.53%), Eicher Motors (up 0.48%) and Ashok Leyland (up 1.78%) gained. Mahindra & Mahindra (M&M) fell 0.62%.
Hero MotoCorp rose 1.73% after the company said its total motorcycle sales rose 3.65% to 6.63 lakh units in October 2016 over October 2015. Hero MotoCorp said it was its third consecutive month of six lakh plus sales. The announcement was made after market hours yesterday, 2 November 2016.
TVS Motor Company fell 1.41%. The company reported a 12% growth in total sales at 3.08 lakh units in October 2016 over October 2015. The company's total two-wheeler sales rose 15.1% to 3.03 lakh units in October 2016 over October 2015. Scooters sales rose 1.07% to Rs 92,417 units in October 2016 over October 2015. Motorcycles sales grew by 14.5% to 1.21 lakh units in October 2016 over October 2015. Three-wheeler sales declined 54.28% to 4,805 units in October 2016 over October 2015. Total exports dropped 15.7% to 35,134 units in October 2016 over October 2015. The company announced the sales volume data after market hours yesterday, 2 November 2016.
Index heavyweight and cigarette major ITC gained 1.26% to Rs 240.30. The stock hit a high of Rs 240.35 and low of Rs 236.15 so far during the day.
Most FMCG stocks fell. GlaxoSmithkline Consumer Healthcare (down 1.24%), Britannia Industries (down 0.05%), Godrej Consumer Products (down 1.24%), Marico (down 0.76%), Tata Global Beverages (down 1.26%), Procter & Gamble Hygiene and Health Care (down 1.49%), Jyothy Laboratories (down 1.09%), Bajaj Corp (down 0.08%) declined.
Hindustan Unilever (up 0.49%), Nestle India (up 0.2%), Colgate-Palmolive (India) (up 0.28%), Dabur India (up 0.1%) rose.
IL&FS Engineering and Construction Company lost 5.57% after the company reported net loss of Rs 80.67 crore in Q2 September 2016 compared with net loss of Rs 81.87 crore in Q2 September 2015. The company's net sales rose 1.4% to Rs 356.87 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 2 November 2016.
Gulshan Polyols rose 5.65% after the company said its board will consider stock split on 5 November 2016. The announcement was made after market hours yesterday, 2 November 2016.
On the macro front, the Nikkei India Services Purchasing Managers' Index, or PMI, rose to 54.5 in October from 52 in September. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy, Pollyanna De Lima, economist at IHS Markit said. She added that one underlying concern is the sustained stagnant trend in workforces, with both manufacturers and service providers showing some reluctance to hire.
Meanwhile, international rating agency Standard & Poor's (S&P) yesterday, 2 November 2016 affirmed "BBB-/A-3" rating with stable outlook for India. The stable outlook balances India's sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances, S&P said. The ratings on India reflect the country's sound external profile and improved monetary credibility, the agency said. The outlook indicates that rating agency does not expect to change its rating on India this year or next, based on our current set of forecasts, it said. Improvements in policy making continue to strengthen the prospects for India's economic and fiscal performance. Wide fiscal deficits, a heavy debt burden, and low per capita income nonetheless detract from the sovereign's credit profile, it added.
In overseas stock markets, most Asian stocks were trading lower with uncertainty over next week's US presidential election sending investors rushing for the sidelines. US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. 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.
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