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Market edges lower amid initial volatility

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Capital Market
Last Updated : Nov 06 2015 | 12:01 AM IST

Key benchmark indices edged lower amid initial volatility. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 53.49 points or 0.2% at 26,499.43. The 50-unit CNX Nifty was down 17.90 points or 0.22% at 8,022.30. Pharma and banking stocks led losses on the bourses.

However, the market breadth indicating the overall health of the market was slightly positive. On BSE, 556 shares rose and 532 shares fell. A total of 32 shares were unchanged. The BSE Mid-Cap index was currently down 0.07%. The BSE Small-Cap index was currently down 0.08%. The decline in both these indices was lower than Sensex's fall in percentage terms.

In overseas markets, Asian stocks were mixed. US stocks dropped yesterday, 4 November 2015, as energy stocks turned lower on a drop in oil prices and two Federal Reserve officials said US economic strength could justify a December interest rate hike. Federal Reserve's Chairwoman Janet Yellen told Congress yesterday, 4 November 2015, the Fed expects the economy to continue to grow at a pace that returns inflation to policy-makers' target and that "if the incoming information supports that expectation, December would be a live possibility" for a rate increase at the Fed's next policy-setting meeting.

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.

Sun Pharmaceutical Industries (down 1.33%), Bharti Airtel (down 1.13%) and Lupin (down 0.91%) were the biggest losers from the Sensex pack.

Ashok Leyland dropped 2.45% despite the company reported strong Q2 results. The company's net profit rose 137.64% to Rs 286.81 crore on 52.85% rise in total income to Rs 4966.20 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 4 November 2015. Ashok Leyland's earnings before interest, taxation, depreciation and amortization (EBITDA) surged 159.38% to Rs 594 crore in Q2 September 2015 over Q2 September 2014.

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Cipla gained 0.04% ahead of its Q2 results today, 5 November 2015.

Tata Steel declined 1.08% ahead of its Q2 results today, 5 November 2015.

Bata India dropped 3.45% after the company announced its Q2 results. The company's net profit rose 38.72% to Rs 54.11 crore on 4.48% rise in total income to Rs 583.56 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 4 November 2015.

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First Published: Nov 05 2015 | 9:25 AM IST

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