Indices pare losses; breadth negative

The benchmark indices pared losses in mid-morning trade. The Nifty was currently trading above the 11,850 level. At 11:24 IST, the barometer index, the S&P BSE Sensex, was down 99.82 points or 0.25% at 40,148.41. The Nifty 50 index was down 37.65 points or 0.32% at 11,879.55.

In the broader market, the S&P BSE Mid-Cap index was down 0.07%. The S&P BSE Small-Cap index was down 0.21%.

The market breadth was negative. On the BSE, 965 shares rose and 1048 shares fell. A total of 128 shares were unchanged. In Nifty 50 index, 20 stocks advanced while 30 stocks declined.

Buzzing sector:

The Nifty Realty index jumped 2.15% to 273.45, reversing losses incurred in past two sessions. The index has fallen 1.27% to end at 267.70 in yesterday's session from a recent closing high of 271.15 on 1 November 2019.

Indiabulls Real Estate (up 4.95%), Housing Development and Infrastructure (HDIL) (up 4.82%), Sobha (up 4.72%), Unitech (up 3.85%), Godrej Properties (up 2.98%), Prestige Estates Projects (up 2.61%), DLF (up 2.15%), Anant Raj (up 2.09%), Sunteck Realty (up 2.06%), Oberoi Realty (up 1.17%), Peninsula Land (up 0.89%), D B Realty (up 0.77%), Omaxe (up 0.22%) and Phoenix Mills (up 0.12%) advanced.

Realty stocks were buzzing on hopes that the government's next round of reforms are likely to be focused on real estate sector. Finance minister Nirmala Sitharaman was quoted by the media as saying on Tuesday, that "the real estate sector requires a lot more attention because the sluggishness which prevails there has got to be addressed. The government is very keen and is working very clearly together with Reserve Bank of India (RBI) to see how best we can make necessary tweaks to the existing blocks to help the people who are affected in this one sector which I have not really completely addressed till now," she added.

Earnings in focus:

Divi's Laboratories slipped 0.95% to Rs 1671.10. The drug manufacturer's consolidated net profit fell 11.6% to Rs 356.78 crore on a 9.2% increase in net sales to Rs 1445.57 crore in Q2 September 2019 over Q2 September 2018.

Torrent Power surged 5.59% to Rs 295.50. On consolidated basis, the power distribution company's net profit jumped 83% to Rs 754.41 crore on a 11.5% rise in net sales to Rs 3842 crore in Q2 September 2019 as against Q2 September 2018.

Cholamandalam Investment and Finance Company slumped 5.79% to Rs 298. The financial services company's consolidated net profit rose 2.7% to Rs 306.94 crore on a 29.9% rise in total income to Rs 2212.48 crore in Q2 September 2019 over Q2 September 2018.

Stock in spotlight:

Aurobindo Pharma fell 4.32% to Rs 453.05. The company said that the U.S. Food and Drug Administration (FDA) issued Form 483 to the company with four observations after inspecting its Hyderabad facilities in October 2019.

Motherson Sumi Systems rose 0.63% to Rs 127.30. Moody's Investors Service, on 4 November 2019 affirmed its "Baa3 rating" on the company while it has revised the outlook to 'negative' from 'stable'.

As per Moody's, the negative outlook principally reflects the weak performance of Motherson's greenfield operations as well as slowing global auto sales, and our concerns around timely recovery, in turn weighing on the company's consolidated earnings and cash flow generation.

PI Industries advanced 0.84% to Rs 1395.50. The company along with its wholly owned subsidiary, PI Life Science Research, acquired Isagro (Asia) Agrochemicals, from lsagro SpA for a cash consideration of Rs 345 crore.

Isagro Asia is engaged in the business of manufacture, sale and distribution of agrochemicals (including insecticides, fungicides, herbicides and other speciality chemicals) from its manufacturing plant situated at Panoli (Gujarat). The proposed acquisition would provide PI access to additional manufacturing capacities to meet growing demand of global customers.

Foreign markets:

Most Asian stocks were trading higher on Wednesday as investors awaited new developments toward scaling back a bruising trade war between the United States and China.

US stocks were mixed on Tuesday as investors paused in the wake of a rally buoyed by hopes of a trade deal between the United States and China that sent the three main U.S. stock indexes to record highs in the previous session.

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