A bout of volatility was witnessed as key benchmark indices reversed intraday trend and re-entered negative terrain in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was down 42.70 points or 0.13% at 33,557.57. The Nifty 50 index was down 18.05 points or 0.17% at 10,422.45. The Nifty hit fresh intraday low in early afternoon trade.
Indices opened with small gains and firmed up as the session progressed. The Nifty hit record high level in morning trade and the Sensex hit record high level in mid-morning trade. Indices, however, failed to sustain at higher levels as profit booking set in at mid-morning trade.
The Sensex rose 57.30 points, or 0.17% at the day's high of 33,657.57 in morning trade, its record high level. The index fell 53.17 points, or 0.16% at the day's low of 33,547.10 in early trade. The Nifty rose 12.50 points, or 0.12% at the day's high of 10,453 in morning trade, its record high level. The index fell 23.05 points, or 0.22% at the day's low of 10,417.45 in early afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.46%. The BSE Small-Cap index was up 0.13%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1,320 shares fell and 1,214 shares rose. A total of 115 shares were unchanged.
State-run Coal India was up 1.86%. The company announced during market hours today, 2 November 2017, that the company and its subsidiaries achieved 93% of targeted production at 46.14 million tonnes in October 2017. The company achieved 100% of targeted offtake at 48.28 million tonnes in October 2017.
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Auto shares were mixed. Eicher Motors (up 0.93%), TVS Motor Company (up 0.85%) and Ashok Leyland (up 0.67%), edged higher. Maruti Suzuki India (down 0.02%), Escorts (down 0.88%), Tata Motors (down 1.09%) and Mahindra & Mahindra (down 1.19%), edged lower.
Two-wheelers maker Bajaj Auto rose 0.62% after total sales rose 7% to 3.82 lakh units in October 2017 over October 2016. The announcement was made before market hours today, 2 November 2017. Domestic sales rose 4% to 2.47 lakh units in October 2017 over October 2016. Exports rose 15% to 1.35 lakh units in October 2017 over October 2016.
Motorcycle major Hero MotoCorp lost 1.14%. The company's net profit rose 0.6% to Rs 1010 crore on 7.3% growth in net revenue from operations to Rs 8362 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 1 November 2017. Net revenue from operations on like-for-like basis (adjusted for GST accounting change on Haridwar sales) grew by 11.5% year on year (YoY) in Q2 September 2017.
EBITDA margin declined slightly to 17.4% in Q2 September 2017, compared with 17.6% in Q2 September 2016. The effective tax rate for the quarter (Q2 September 2017) is higher on account of phasing out of investment allowance and reduction in allowable deduction of R&D expenditure leading to lower PAT growth versus EBITDA growth.
Pawan Munjal, CMD and CEO of Hero MotoCorp said, the first half of FY 2018 has been exciting for the company. The industry rebounded in the festive quarter largely aided by the positive sentiment in the urban and rural markets. With a series of new product launches and significant brand building initiatives in the global markets, the company is confident of carrying forward the momentum in the second half of FY 2018 as well, Munjal said.
Most telecom shares rose. Tata Teleservices (Maharashtra) (up 4.97%), Idea Cellular (up 3.64%), MTNL (up 2.24%) and Reliance Communications (up 0.88%), edged higher. Bharti Airtel was down 0.63%.
Telecom tower infrastructure provider Bharti Infratel was down 1.05%.
Entertainment Network (India) fell 1.25% after consolidated net profit fell 24.34% to Rs 6.09 crore on 5.1% decline in total income to Rs 128.01 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 1 November 2017.
Overseas, most Asian stocks were trading lower as investors locked in profit from recent gains. Investors were waiting for the announcement on the next US Federal Reserve chief, shrugging off results of a Fed meeting that met their expectations. President Donald Trump is expected to name the successor to Fed Chair Janet Yellen later in the global day.
US stocks mostly closed higher Wednesday, with the Dow and the S&P 500 ending near record levels after the US Federal Reserve kept interest rates unchanged on Wednesday, but referred to the US economy in positive terms. The Dow Jones Industrial Average rose 0.25% and the S&P 500 climbed 0.16% Both ended mere points from record levels. The Nasdaq Composite Index, however, bucked the trend to slip 0.17%.
The US central bank, in its statement following a two-day meeting, said economic activity has been picking up at a solid rate, versus the moderate rate that it had referenced in September. The rosier view of the economy also suggests that it is on track to hike interest rates in December, as has been widely expected.
Private-sector employment in the US bounced back in October as employers added 235,000 jobs, ADP reported Wednesday. The gain in October ADP was higher than the 110,000 gain in September.
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