A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in mid-morning trade after the outcome of a monthly survey showed that the growth in India's services sector accelerated last month. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 99.03 points or 0.37% at 26,689.62. The 50-unit CNX Nifty was up 25.05 points or 0.31% at 8,085.75. Gains in Asian stocks underpinned sentiment on the domestic bourses.
The Sensex 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 barometer index rose 65.53 points or 0.24% at the day's low of 26,656.12 in mid-morning trade. The Nifty 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 index gained 9.95 points or 0.12% at the day's low of 8,070.65 in mid-morning trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,353 shares rose and 863 shares fell. A total of 114 shares were unchanged. The BSE Mid-Cap index was currently up 0.51%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.35%, underperforming the Sensex.
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 inflows. 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.
In overseas stock markets, 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. In mainland China, the Shanghai Composite was currently up 2.85%. Hong Kong's Hang Seng index was up 2.11%. 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 boost investor sentiment. The tech-heavy Nasdaq Composite Index attained a record closing high.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.65%), BEML (up 1.34%), ABB India (up 0.37%), Bharat Electronics (up 1.6%), L&T (up 0.71%), Thermax (up 0.32%), and Siemens (up 0.89%) gained.
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Grasim Industries declined 0.28%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Hero MotoCorp gained 0.98%, with the stock extending gains registered during the previous trading session triggered by the company announcing record monthly sales in October 2015. The stock had risen 1.26% yesterday, 3 November 2015. The company's total sales rose 11.25% to 6.39 lakh units in October 2015 over October 2014.
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