Key benchmark indices hit fresh intraday low in mid-afternoon trade, tracking negative cues from European market. At 14:16 IST, the barometer index, the S&P BSE Sensex was down 207.86 points or 0.76% to 27,222.42. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently down 68.10 points or 0.80% at 8,416.85. Selling pressure was witnessed in select mid-cap and small-cap stocks.
The Sensex and the Nifty hit their lowest intraday levels in almost four months in mid-afternoon trade. The Sensex fell 213.13 points, or 0.78% at the day's low of 27,217.15 in mid-afternoon trade, its lowest level since 8 July 2016. The index rose 68.63 points, or 0.25% at the day's high of 27,498.91 in early trade. The Nifty fell 75.20 points, or 0.89% at the day's low of 8,409.75 in mid-afternoon trade, its lowest level since 11 July 2016. The index rose 19.05 points, or 0.22% at the day's high of 8,504 in early trade.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,205 shares rose and 595 shares fell. A total of 121 shares were unchanged. The BSE Mid-Cap index was currently off 1.63%. The BSE Small-Cap index was currently off 2.40%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, European stocks were trading lower today, 4 November 2016, following declines overnight on Wall Street as the closeness of the US elections continues to rattle nerves in the market. Meanwhile, the Bank of England (BoE) scrapped its plan to cut interest rates, which it said could now move up or down, and raised its forecasts for 2017 growth and inflation sharply due to the slide in sterling since Britain's vote to leave the European Union. The BOE's nine policymakers all voted to keep rates on hold yesterday, 3 November 2016. There was also unanimous support to stick with August's bond-buying plans.
Most Asian stocks declined as investors were spooked by growing uncertainty about the outcome of the US presidential election next week. US stocks closed lower yesterday, 3 November 2016, marking the S&P 500's longest losing streak since the depths of the financial crisis, as Facebook shares slumped and investors fretted over election uncertainty. Fresh polls released yesterday, 3 November 2016 reportedly showed that Democrat Hillary Clinton, who is seen as the status quo candidate by markets, maintained her narrow lead over Republican Donald Trump. 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.
Power generation stocks edged lower. Reliance Infrastructure (down 3.25%), Reliance Power (down 2.84%), GMR Infrastructure (down 2.72%), Jaiprakash Power Ventures (down 2.53%), Adani Power (down 2.29%), Torrent Power (down 1.87%), JSW Energy (down 1.79%), Tata Power (down 1.37%), NHPC (down 0.38%) and CESC (down 0.37%), edged lower. NTPC was up 0.42%.
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State-run Power Grid Corporation of India was down 1.32% at Rs 172.20.
State-run Coal India was down 3.90% to Rs 314 on reports that a foreign brokerage has maintained underperform rating on the stock with a target price of Rs 270.
Cement shares edged lower. ACC (down 1.48%), UltraTech Cement (down 1.27%) and Ambuja Cements (down 1.05%), edged lower.
Grasim Industries was down 1.88%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Tube Investments of India lost 3.6% after net profit surged 113.32% to Rs 53.80 crore on 3.18% growth in total income to Rs 1079.94 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 3 November 2016.
Tube Investments of India's (TIIL) revenue rose 2% to Rs 1062 crore in Q2 September 2016 over Q2 September 2015. Other income spurted 104.78% to Rs 18.41 crore in Q2 September 2016 over Q2 September 2015. L. Ramkumar, Managing Director of TIIL said that during Q2 September 2016, auto industry registered a growth of 11% in passenger vehicles and 14% in two wheeler segment. The company's export turnover grew by 72% over corresponding quarter in the previous year.
On the economic front, the GST council yesterday, 3 November 2016 approved four main tax slabs 5%, 12%, 18% and 28% under a proposed Goods and Services Tax (GST). While there will be two standard tax rates - 12% and 18% - under the GST, half of the items in the consumer price index would not be taxed at all to safeguard the interests of the poor.
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