After recouping a lion's portion of intraday losses in early afternoon trade, key benchmark indices edged lower once again in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was off 90.88 points or 0.34% at 26,462.04. The losses for the 50-unit CNX Nifty index were higher in percentage terms than those for the Sensex. The Nifty was currently off 34.10 points or 0.42% at 8,006.10. The Nifty was currently hovering above the psychological 8,000 mark. The Nifty has alternately moved above and below the psychological 8,000 mark in intraday trade so far after falling below that level in morning trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,559 shares fell and 899 shares rose. A total of 107 shares were unchanged. The BSE Mid-Cap index was currently down 0.64%. The BSE Small-Cap index was currently down 0.71%. The decline in both these indices was higher than the Sensex's fall in percentage terms.
In overseas stock markets, key benchmark indices in emerging Asia were mostly in red after Federal Reserve Chairwoman Janet Yellen yesterday, 4 November 2015, hinted that a 25 basis point rate hike in December would not derail the US economy or the US housing market. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. New York Fed President William Dudley also struck a hawkish tone, saying yesterday, 4 November 2015, that he agreed with Fed Chairwoman that a December rate hike is a live possibility. The next monetary policy review from the Fed is scheduled on 15-16 December 2015. The Fed-funds futures market is now pricing in 56% probability of an increase in US benchmark interest rate in December 2015.
Chinese stocks bucked weakness in emerging Asian markets amid speculation Chinese authorities will roll out a trading link between the Hong Kong and Shenzhen stock markets. In mainland China, the Shanghai Composite ended with gains of 1.83%.
FMCG stocks rose. Marico (up 1.75%), Godrej Consumer Products (up 1.29%), Hindustan Unilever (up 0.91%), Britannia Industries (up 0.89%), GlaxoSmithkline Consumer Healthcare (up 0.27%), Nestle India (up 0.27%) and Jyothy Laboratories (up 1.1%) rose.
Bajaj Corp (down 0.21%), Tata Global Beverages (down 0.38%), Colgate-Palmolive (India) (down 0.03%) and Dabur India (down 0.46%) declined.
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Procter & Gamble Hygiene and Health Care lost 1.56% after announcing Q1 result. The company's net profit rose 16% to Rs 71 crore on 4% growth in net sales to Rs 598 crore in Q1 September 2015 over Q1 September 2014. The result was declared after market hours yesterday, 4 November 2015.
Telecom stocks declined. Bharti Airtel (down 2.56%), Idea Cellular (down 0.89%), MTNL (down 2.42%), Tata Teleservices (Maharashtra) (down 2.47%) and Reliance Communications (down 3.6%) edged lower.
Cement stocks dropped. UltraTech Cement (down 1.87%), Shree Cement (down 2.24%), Ambuja Cements (down 0.62%) and ACC (down 1.07%) declined.
Grasim Industries was off 0.37% at Rs 3,672.65. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
JK Lakshmi Cement lost 2.19% after reporting reverse turnaround in Q2. The company reported net loss of Rs 14.95 crore in Q2 September 2015 compared with net profit of Rs 30.61 crore in Q2 September 2014. JK Lakshmi Cement's total income rose 13.57% to Rs 651.68 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 4 November 2015.
JK Lakshmi Cement said that the company's profitability in Q2 September 2015 was adversely affected mainly due to additional burden of interest and depreciation on account of commissioning of first phase of the company's Greenfield cement plant at Durg in March 2015.
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