A range bound movement was witnessed as key benchmark indices hovered in negative terrain in mid-morning trade after a monthly survey showed a further slowdown in the manufacturing sector in October 2015. At 11:20 IST, the barometer index, the S&P BSE Sensex, was off 115.97 points or 0.44% at 26,540.86. The 50-unit CNX Nifty was off 37.40 points or 0.46% at 8,028.40. Weakness in Asian stocks weighed on sentiment on the domestic bourses. The Sensex hit 4-week low when it dropped 157.81 points or 0.59% at the day's low of 26,499.02 in morning trade. Earlier due to technical error in data release from BSE, the Sensex showed a jump of 167.47 points or 0.62% at the day's high of 26,824.30 at the onset of the trading session. The Nifty has remained in negative zone right from the onset of the trading session. The Nifty also hit 4-week low when it dropped 46.45 points or 0.57% at the day's low of 8,019.35 in morning trade.
Meanwhile, the outcome of a monthly survey showed a further loss of growth momentum across the Indian manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) hit 22-month low of 50.7 in October 2015 from a reading of 51.2 in September 2015. A reading above 50 indicates expansion in manufacturing activity from a month earlier, while a reading below that level indicates contraction.
The market breadth indicating the overall health of the market was weak. On BSE, 1,297 shares fell and 849 shares rose. A total of 89 shares were unchanged. The BSE Mid-Cap index was currently down 0.07%. The BSE Small-Cap index was currently down 0.28%. The decline in both these indices was lower in percentage terms than the Sensex's fall.
In overseas stock markets, Japanese stocks led decline in Asian equities as China's manufacturing data pointed to slowing activity. US stocks drifted lower during the previous trading session on Friday, 30 October 2015, after a batch of weaker economic reports and mixed corporate earnings.
Most auto stocks gained after announcing monthly sales volume data. Maruti Suzuki India rose 1.3%. The company's total sales rose 29.1% to 1.34 lakh units in October 2015 over October 2014. Domestic sales rose 24.7% to 1.21 lakh units in October 2015 over October 2014. Exports jumped 90.4% to 13,146 units in October 2015 over October 2014.
Mahindra & Mahindra (M&M) gained 4.08% after the company reported strong auto sales in October. The company's total automobile sales rose 20% to 51,383 units in October 2015 over October 2014. Domestic sales rose 21% to 48,815 units in October 2015 over October 2014. Exports rose 3% to 2,568 units in October 2015 over October 2014.
Separately, the company announced that its total tractor sales fell 12% to 28,081 units in October 2015 over October 2014. Domestic tractor sales dropped 11% to 27,280 units in October 2015 over October 2014. Exports dropped 28% to 801 units in October 2015 over October 2014.
Tata Motors gained 1.25% after the company announced that it continued to witness strong growth in certain key segments in October 2015. Total sale of Tata Motors passenger and commercial vehicles rose 1% at 43,486 vehicles, in October 2015 over October 2014. The domestic sale of Tata commercial and passenger vehicles remained flat at 38,917 units in October 2015 over October 2014. Tata Motors passenger vehicles recorded a growth of 11% to 12,798 units in October 2015 over October 2014. In commercial vehicles, M&HCV sales rose 20% at 12,504 units in October 2015 over October 2014. The Light & Small Commercial Vehicle sales however continued to reflect industry decline and fell 19% at 13,615 units in October 2015 over October 2014. The company's sales from exports rose 13% at 4,569 units in October 2015 over October 2014.
This monthly sales data pertains to the standalone operations of Tata Motors and does not includes sales of its luxury car unit Jaguar Land Rover (JLR). Tata Motors' standalone business mainly comprises of its commercial vehicles and passenger vehicles business in India.
Bajaj Auto dropped 4.06% after the company reported weak sales in October. The company's total sales fell 9% to 3.52 lakh units in October 2015 over October 2014. Motorcycles sales fell 8% to 3.08 lakh units in October 2015 over October 2014. Commercial vehicles sales dropped 10% to 44,089 units in October 2015 over October 2014. Exports dropped 19% to 1.27 lakh units in October 2015 over October 2014.
Hero MotoCorp declined 1.1%. The company informed during market hours today, 2 November 2015, that the visionary founder of the diversified Hero Group Dr Brijmohan Lall Munjal, passed away yesterday, 1 November 2015, at the age of 92. He was the Chairman Emeritus of Hero MotoCorp.
GlaxoSmithKline Pharmaceuticals shed 2.95% after net profit fell 25.35% to Rs 96.05 crore on 6.52% decline in total income to Rs 731.43 crore in Q2 September 2015 over Q2 September 2014. The result was announced on Saturday, 31 October 2015.
Telecom stocks were mixed. Bharti Airtel (down 0.62%), Tata Teleservices (Maharashtra) (down 2.4%) and MTNL (down 0.54%) declined. Idea Cellular rose 0.57%.
Reliance Communications (RCom) rose 2.33% ahead of the firm's board meeting today, 2 November 2015, to consider a scheme of arrangement for demerger of telecom business undertaking of Sistema Shyam Teleservices into the company. The company announced about the board meeting on Saturday, 31 October 2015. On 15 June 2015, RCom had announced that the company and AFK Sistema had entered into exclusive discussions on a merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCom through a stock swap.
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