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Market breadth turns negative from positive

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Capital Market
Last Updated : Nov 08 2016 | 11:28 AM IST

A bout of volatility was witnessed as key benchmark indices bounced back after slipping into negative terrain in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 9.82 points or 0.04% at 27,468.81. The Nifty 50 index was up 4.25 points or 0.05% at 8,501.30.

The Sensex fell 21.11 points, or 0.08% at the day's low of 27,437.88 in mid-morning trade. The index rose 141.72 points, or 0.52% at the day's high of 27,600.71 in early trade, its highest level since 3 November 2016. The Nifty fell 7.75 points, or 0.09% at the day's low of 8,489.30 in mid-morning trade. The index rose 46.10 points, or 0.54% at the day's high of 8,543.15 in early trade, its highest level since 2 November 2016.

The market breadth indicating the overall health of the market turned negative from positive. On BSE, 1,297 shares fell and 1,160 shares rose. A total of 95 shares were unchanged. The BSE Mid-Cap index was currently down 0.16%. The BSE Small-Cap index was currently down 0.02%. Both these indices underperformed the Sensex.

In overseas stock markets, Asian stocks were trading higher as the world's most closely watched election draws near. Japan's Nikkei 225 was, however, was down 0.07%. US stocks on Monday, 7 November 2016, had their best trading day since March on a percentage basis. Gains were broad, with the Dow Jones Industrial Average reclaiming the key 18,000 level and the S&P 500 snapping its nine-day losing streak, the longest since 1980. The slide had been attributed partly to polls showing a closer contest between Clinton and Republican rival Donald Trump.

The outcome of United States presidential elections of 2016, which will be held today, 8 November 2016, will have a bearing on global stocks. Presidential election will be held between Democratic party candidate Hillary Clinton and Republican party candidate Donald Trump. The results are expected on the next day of elections.

Back home, auto shares were mixed. Eicher Motors (down 0.2%), Ashok Leyland (down 0.22%), TVS Motor Company (down 0.62%), Escorts (down 1.19%) and Maruti Suzuki India (down 1.24%), edged lower. Tata Motors (up 4.49%), Bajaj Auto (up 1.41%), Mahindra & Mahindra (up 0.27%) and Hero MotoCorp (up 0.22%), edged higher.

Most IT shares edged higher. MindTree (up 2.86%), Hexaware Technologies (up 0.96%), Tech Mahindra (up 0.70%), MphasiS (up 0.43%), Oracle Financial Services Software (up 0.36%), TCS (up 0.34%) and Infosys (up 0.17%), edged higher. Persistent Systems (down 0.53%) and HCL Technologies (down 0.95%), edged lower.

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IT major Wipro rose 0.12% to Rs 451.50 after the company announced the launch of its Open Banking application programming interface platform. The announcement was made after market hours yesterday, 7 November 2016.

Wipro said that the Open application programming interface (API) platform will enable banks and financial institutions to launch Open Banking initiatives and create new forms of distribution channels and servicing capabilities, provide access to third-party application marketplaces, and comply with emerging regulatory norms through the standardization of APIs. Open Banking is an emerging trend in financial technology that uses Open APIs to enable third party developers build applications and services around a financial institution.

It facilitates greater financial transparency and helps financial institutions innovate and create new revenue models. Open Banking has been gaining significant momentum across the globe, especially in the European banking industry - driven by changing regulatory mandates. Revised Directive on Payment Services (PSD2), is one such regulatory mandate that aims to standardize, integrate and improve payment efficiency in the European Union.

Wipro expects a large number of banks and financial institutions to adopt Open Banking initiatives to conform with evolving banking regulations, meet customers' digital expectations, and stay ahead in an increasingly competitive FinTech industry. These are transforming the way banks approach products and distribution, it added.

Varun Beverages was trading at Rs 440.20 at 11:02 IST on BSE, a discount of 1.08% compared with the initial public offer price of Rs 445 per share on its debut on the bourses today, 8 November 2016.

On BSE, so far 15.26 lakh shares were traded in the counter. The stock made its debut on the bourses at Rs 430, a discount of 3.37% compared with its initial public offer (IPO) of Rs 445 per share. The stock hit a high of Rs 444 and a low of Rs 417.10 so far during the day.

The IPO of Varun Beverages saw moderate response from investors. The IPO was subscribed 1.86 times. The issue price was fixed at top end of the price band of Rs 440 to Rs 445 per share. Promoted by Ravi Kant Jaipuria, Varun Beverages is one of the largest franchisee in the world (outside USA) of carbonated soft drinks (CSD) and noncarbonated beverages (NCB) sold under trademarks owned by PepsiCo. It produces and distributes a wide range of CSD as well as a large selection of NCB including packaged drinking water.

EID Parry India gained 1.98% after the company reported consolidated net profit of Rs 126.15 crore in Q2 September 2016 compared with consolidated net loss of Rs 4 crore in Q2 September 2015. The announcement was made after market hours yesterday, 7 November 2016.

EID Parry India's total income rose 6.66% to Rs 4757.26 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 69% to Rs 508 crore in Q2 September 2016 over Q2 September 2015. V Ramesh, Managing Director of the company said that the company's sugar division witnessed a marginal improvement in sugar prices in Q2 September 2016. Both the Bio products and Nutraceutical divisions continue to work on new product to strengthen their product portfolios, he added.

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First Published: Nov 08 2016 | 11:11 AM IST

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