A bout of volatility was seen in early trade as the key benchmark indices reversed initial losses triggered by uncertainty over the outcome of the upcoming US presidential election. At 9:27 IST, the barometer index, the S&P BSE Sensex was up 33.66 points or 0.12% to 27,560.88. The Nifty 50 index was currently up 9.90 points or 0.12% at 8,523.90.
In overseas stock markets, most Asian stocks were trading lower with uncertainty over next week's US presidential election sending investors rushing for the sidelines. US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,200 shares advanced and 407 shares declined. A total of 51 shares were unchanged. The BSE Mid-Cap index was currently up 0.51%. The BSE Small-Cap index was currently up 0.53%. Both these indices outperformed the Sensex.
ICICI Bank (up 1.27%), Tata Steel (up 0.92%) and Cipla (up 0.71%) edged higher from the Sensex pack.
Ambuja Cements rose 0.64% ahead of its Q3 September 2016 result today, 3 November 2016.
Hero MotoCorp rose 0.27% after the company announced that it dispatched 6.63 lakh units in October 2016, its third consecutive month of six lakh plus sales. The announcement was made after market hours yesterday, 2 November 2016.
On the macro front, Markit Economics will announce the India Services PMI data for October 2016 today, 3 November 2016. The seasonally adjusted Nikkei India Services Business Activity Index registered 52 in September down from August's 43-month high of 54.7.
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