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Market trims gains

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Capital Market
Last Updated : Nov 04 2015 | 1:28 PM IST

After holding positive zone in mid-morning trade, key benchmark indices trimmed gains in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 87.01 points or 0.33% at 26,677.60. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 17.60 points or 0.22% at 8,078.30. Data showing acceleration in growth in India's services sector last month and gains in Asian stocks aided upmove on the domestic bourses.

The market breadth indicating the overall health of the market was positive. On BSE, 1,361 shares rose and 974 shares fell. A total of 123 shares were unchanged. The BSE Mid-Cap index was currently up 0.37%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.28%, 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. 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. A signal that the European Central Bank stands ready to take more accommodative action also lifted sentiment in Asian markets. In mainland China, the Shanghai Composite was currently up 3.83%. Hong Kong's Hang Seng index was up 2.28%. 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.

European Central Bank (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.

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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Metal & mining stocks gained as metal prices rose on the global commodities markets. Bhushan Steel (up 0.69%), Hindustan Copper (up 0.53%), Vedanta (up 0.71%), Hindalco Industries (up 0.36%), Hindustan Zinc (up 0.38%), Jindal Steel & Power (up 0.59%), Tata Steel (up 0.38%), National Aluminum Company (up 0.26%) and NMDC (up 0.37%) gained. JSW Steel (down 0.01%) and Steel Authority of India (Sail) (down 0.1%) declined.

High Grade Copper for December 2015 delivery was currently up 0.32% at $2.338 per pound on the COMEX.

Telecom stocks were mixed. Bharti Airtel (down 0.62%), Tata Teleservices (Maharashtra) (down 0.29%) and MTNL (down 1.05%) declined. Idea Cellular was up 1.33%.

Reliance Communications (RCom) extended its recent rally triggered by the company's announcement of acquisition of telecom business of Sistema Shyam Teleservices (SSTL) through a stock swap. The scrip was up 1.16%.

Dr Reddy's Laboratories gained 0.66% after the company announced that it has entered into a strategic alliance with Biocodex to market and distribute the latter's products in the Romanian market. Dr Reddy's will aim to develop the access of the Romanian patients to the Rx portfolio, including Biocodex's well known over the counter products, ENTEROL and OTIPAX.

Minda Industries hit upper circuit limit of 20% at Rs 696.50 after the company posted strong consolidated numbers in Q2 September 2015. Minda Industries' profit after tax (PAT) and minority interest (MI), after excluding tax-adjusted exceptional items, increased by 110% to Rs 26 crore in Q2 September 2015 over Q2 September 2014. Consolidated revenue rose 19% to Rs 652 crore for Q2 September 2015 over Q2 September 2014.

The company's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 72% to Rs 63 crore in Q2 September 2015 over Q2 September 2014. EBITDA margin has expanded by 294 basis points to 9.7% for Q2 September 2015.

HSIL surged 4.92% after net profit rose 27.6% to Rs 24.33 crore on 0.8% decline in net sales to Rs 413.70 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 3 November 2015.

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First Published: Nov 04 2015 | 12:20 PM IST

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