Fresh selling derailed a brief intraday recovery as the key benchmark indices once again grinded near intraday low in early afternoon trade. At 12:25 IST, the S&P BSE Sensex was down 94.01 points or 0.33% at 28,240.54. The Nifty 50 index was currently down 24.70 points or 0.28% at 8,744.45. Weakness in Asian stocks triggered decline on domestic bourses.
Key indices hit over one-week high at onset of the day's trading session after the International Monetary Fund (IMF) raised slightly India's growth forecast. The Sensex rose 143.10 points or 0.51% at the day's high of 28,477.65 at onset of the day's trading session, its highest level since 26 September 2016. The barometer index lost 102.59 points or 0.36% at the day's low of 28,231.96 in morning trade, its lowest level since 3 October 2016. The Nifty rose 37.80 points or 0.43% at the day's high of 8,806.95 at onset of the day's trading session, its highest level since 26 September 2016. The index lost 35.20 points or 0.4% at the day's low of 8,733.95 in morning trade.
In overseas stock markets, most Asian stocks were trading lower as concern shifted to the likelihood of a US Federal Reserve rate increase by the year's end. Mainland Chinese markets remained closed for the National Day holiday. US stocks closed lower yesterday, 4 October 2016 as investors digested data from the International Monetary Fund and remarks from a Federal Reserve official. Federal Reserve Bank of Richmond President Jeffrey Lacker stating that the central bank should pre-emptively raise short-term interest rates to stave off accelerating inflation.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,566 shares gained and 982 shares fell. A total of 121 shares were unchanged. The BSE Mid-Cap index was up 0.26%. The BSE Small-Cap index was up 0.46%. Both these indices outperformed the Sensex.
Index heavyweight and housing finance major HDFC lost 1.08% after the company announced that the profit on sale of investments declined 60.41% to Rs 19 crore in Q2 September 2016 over Q2 September 2015. Income from dividend rose 7.29% to Rs 456 crore in Q2 September 2016 over Q2 September 2015. The company, under the loan assignment route sold loans amounting to Rs 1939 crore in Q2 September 2016 to HDFC Bank. HDFC sold loans amounting to Rs 13086 crore in the preceding twelve months. The company is scheduled to announce its Q2 September 2016 results on 26 October 2016. The announcement was made after market hours yesterday, 4 October 2016.
Cement stocks saw mixed trend. Ambuja Cements (down 0.76%) and ACC (down 0.44%) fell. UltraTech Cement (up 1.21%) and Shree Cement (up 0.12%) gained.
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Grasim Industries was up 0.98% at Rs 4,960. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Telecom stocks rose. Bharti Airtel (up 0.45%), MTNL (up 0.03%), Tata Teleservices (Maharashtra) (up 1.38%) and Reliance Communications (up 0.53%) rose. Idea Cellular fell 0.06%.
Shares of Bharti Infratel rose 1.19%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Jagran Prakashan surged 4.96% after the company said the High Court of Judicature at Allahabad approved the demerger of radio business undertaking of Shri Puran Multimedia into Music Broadcast. The announcement was made after market hours yesterday, 4 October 2016.
Jagran Prakashan said that the High Court of Judicature at Allahabad approved the amalgamation of Crystal Sound & Music (Crystal) and Spectrum Broadcast Holdings (Spectrum) with the company and the demerger of radio business undertaking of Shri Puran Multimedia (SPML) into Music Broadcast (MBL). The scheme is pending for approval from High Court of Judicature at Mumbai and other requisite approvals. The scheme shall be effective from the date of filing of certified/authenticated copies of orders of the High Courts with the Registrar of Companies Uttar Pradesh and Registrar of Companies at Mumbai, as applicable.
Bombay Burmah Trading Corporation gained 8.46% after the company announced that its board approved the proposal for raising funds upto Rs 250 crore through issue of commercial paper/secured, redeemable, non- convertible debentures (NCDs). The board entrusted the functions of deciding on the issue date, denomination, terms and conditions of issue etc. to a committee formed for the purpose.
Global economic growth will remain subdued this year following a slowdown in the United States and Britain's vote to leave the European Union, the IMF said in its October 2016 World Economic Outlook yesterday, 4 October 2016. The world economy will expand 3.1% this year, the IMF said, unchanged from its July projection.
Meanwhile, the International Monetary Fund (IMF) has raised India's growth forecast a tad, citing the resilience of its economy and robust growth momentum. The IMF now expects the economy to expand 7.6% in 2016-17, up from its earlier projection of 7.4%.
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