A bout of volatility was seen as the key benchmark indices cut losses soon after hitting fresh intraday low in early afternoon trade. At 12:25 IST, the barometer index, S&P BSE Sensex was down 72.48 points or 0.26% at 28,033.73. The Nifty 50 index was down 24.80 points or 0.28% at 8,684.75. The Sensex regained the psychologically important 28,000 mark soon after hitting intraday low below that level in early afternoon trade. Domestic bourses fell in tandem with Asian stocks as investors looked ahead to a key employment report.
The Sensex fell 115.47 points or 0.41% at the day's low of 27,990.74 in early afternoon trade trade, , its lowest level since 3 October 2016. The barometer index rose 49.47 points or 0.18% at the day's high of 28,155.68 in early trade. The Nifty lost 39.30 points or 0.45% at the day's low of 8,670.25 in early afternoon trade, its lowest level since 3 October 2016. The index rose 14.15 points or 0.16% at the day's high of 8,723.70 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,249 shares gained and 1,242 shares fell. A total of 203 shares were unchanged. The BSE Mid-Cap index was up 0.08%, outperforming the Sensex. The BSE Small-Cap index was off 0.09%. The fall in this index was lower than Sensex's decline in percentage terms.
Capital goods stocks edged lower. Bharat Heavy Electricals (Bhel) (down 0.99%), ABB India (down 0.75%), BEML (up 0.24%), Bharat Electronics (down 0.57%), Crompton Greaves (down 0.52%), L&T (down 0.82%), Siemens (down 0.24%) and Thermax (down 1.59%) fell.
Most realty stocks declined. Indiabulls Real Estate (down 2.14%), Housing Development and Infrastructure (down 0.31%), Phoenix Mills (down 1.76%), DLF (down 0.32%), Unitech (down 1%), Sobha (down 0.97%), and Parsvnath Developers (down 0.93%) fell.
D B Realty (up 1.12%), Godrej Properties (up 0.13%), Prestige Estates Projects (up 0.41%) and Oberoi Realty (up 0.68%) rose.
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NMDC rose 0.41% after the company reported increase in production and sales of iron ore in September 2016 over August 2016. NMDC reported 19.16% increase in iron ore production to 13.93 million tonnes in September 2016 over August 2016. The company reported 22.43% increase in iron ore sales to 15.83 million tonnes in September 2016 over August 2016. The announcement was made during trading hours today, 7 October 2016.
Bharat Forge rose 1.24% on reports that a foreign brokerage has upgraded the stock to buy from sell. The foreign brokerage reportedly sees likelihood of a cyclical recovery for Bharat Forge. New business' contribution could increase post FY 2018, it said. The brokerage expects Bharat Forge stock to deliver 70% return in next two and half years.
IDBI Bank rose 4.06% on reports the government is looking to get the bank's stalled disinvestment plan moving again. The Government of India (GoI) has reportedly instructed IDBI Bank's management to bring its stake down to 52%. Retaining a majority, the government hopes, will allow the asset-sale programme smoother passage and eventually help achieve the ambition of transforming IDBI Bank along the lines of Axis Bank, reports suggested. The GoI currently held 73.98% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2016).
In overseas stock markets, Asian stocks were trading lower as investors looked ahead to a key employment report. Markets in China remained closed for the Golden Week public holidays. US stocks closed near the flatline yesterday, 6 October 2016 as investors abstained from making big bets ahead of much-anticipated September jobs report. The US Bureau of Labor Statistics will announce the non farm payrolls report for September 2016 later in the global day today, 7 October 2016. Total nonfarm payroll employment in the United States increased by 151,000 in August of 2016, lower than a upwardly revised 275,000 in July. Investors and traders have been keeping a close eye on economic data as they gauge the likelihood of the US Federal Reserve raising interest rates later this year.
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