A bout of volatility was witnessed as key benchmark indices trimmed gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 64.20 points or 0.24% at 26,654.79. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index which was trading near the flat line. The Nifty was currently up 3.85 points or 0.05% at 8,064.55. The Nifty briefly slipped into the red from green in mid-afternoon trade. The index lost 4.75 points or 0.05% at the day's low of 8,055.95 in mid-afternoon trade. Earlier, the index rose 55.40 points or 0.68% at the day's high of 8,116.10 in early trade, its highest level since 30 October 2015.
The Sensex has retained positive zone so far during the trading session. The barometer index jumped 209.47 points or 0.78% at the day's high of 26,800.06 in early trade, its highest level since 2 November 2015. The Sensex rose 20.22 points or 0.07% at the day's low of 26,610.81 in mid-afternoon trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,352 shares rose and 1,188 shares fell. A total of 148 shares were unchanged. The BSE Mid-Cap index was currently up 0.37%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.08%, underperforming the Sensex.
On the macro front, the outcome of a monthly survey showed that growth in India's services sector accelerated last month on the back of a pick up in new business. The seasonally adjusted Nikkei Services Business Activity Index reached eight-month high of 53.2 in October 2015. Services business sentiment regarding the 12-month outlook for activity remained positive in October. The degree of confidence signalled was the strongest since July.
IT stocks edged lower. TCS (down 0.65%), Infosys (down 0.34%), Wipro (down 0.18%), Oracle Financial Services Software (down 0.21%) and MphasiS (down 1.73%) edged lower. HCL Technologies rose 0.26%.
Tech Mahindra edged lower in volatile trade after the announcement of second quarter September 2015 results. The stock was currently off 1.71% at Rs 547.55. The stock hit high of Rs 569 and low of Rs 545.20 so far during the day. Tech Mahindra's consolidated net profit rose 16.2% to Rs 785.60 crore on 5.1% rise in revenue to Rs 6615.50 crore in Q2 September 2015 over Q1 June 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 16.5% to Rs 1101 crore in Q2 September 2015 over Q1 June 2015. The result was announced after market hours yesterday, 3 November 2015.
Shares of power generation and power distribution companies were mixed. NTPC (down 0.11%), Torrent Power (down 1.3%), NHPC (down 0.28%), Tata Power Company (down 0.15%) declined. Adani Power (up 0.81%), Reliance Infrastructure (up 1.72%) and Reliance Power (up 4.55%) gained.
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Power Grid Corporation of India rose 0.15% to Rs 131.65 after the company reported good Q2 results. The stock was volatile. The stock hit high of Rs 134 and low of Rs 130.55 so far during the day. The company's net profit rose 20.54% to Rs 1448.04 crore on 16.65% rise in total income to Rs 5026.90 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 3 November 2015.
Gujarat Narmada Valley Fertilizers & Chemicals surged 17.02% after the company reported net profit of Rs 52.67 crore in Q2 September 2015 compared with net loss of Rs 30.37 crore in Q2 September 2014. The result was announced after market hours yesterday, 3 November 2015.The company's net sales declined 11% to Rs 1151.57 crore in Q2 September 2015 over Q2 September 2014.
In overseas stock markets, European stocks edged higher in early trade after a signal from the European Central Bank (ECB) that it stands ready to take more accommodative action. ECB President Mario Draghi reiterated in a speech yesterday, 3 November 2015, that ECB policy makers are ready to act on low-inflation risks if necessary. In October, Draghi had said the central bank might announce further measures as soon as December.
Chinese stocks led gains in Asian equities after China's President Xi Jinping made economy-friendly comments and as the Chinese government reportedly unveiled proposals for a five-year financial market reform plan. A signal that the European Central Bank (ECB) stands ready to take more accommodative action also lifted sentiment in Asian markets. In mainland China, the Shanghai Composite ended with gains of 4.31%. Hong Kong's Hang Seng index settled with gains of 2.15%. Xi was quoted as saying that China can maintain annual economic growth of around 7% over the next five years. The Chinese President, however, cautioned that there are uncertainties, including weak global trade and high domestic debt, according to media reports.
US stocks rose for a second straight day yesterday, 3 November 2015, as strong monthly auto sales data for October 2015 boosted investor sentiment. The tech-heavy Nasdaq Composite Index attained a record closing high.
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