Key benchmark indices witnessed divergent trends. The barometer index, the S&P BSE Sensex, registered small losses, while the Nifty 50 index registered tiny gains. The Sensex fell 5.94 points or 0.02% to settle at 26,298.69. The Nifty rose 3.15 points or 0.04% to settle at 8,111.60. Key indices pared intraday gains during the last one hour of trading session as European and Asian stocks trimmed gains. The Sensex hit its lowest closing level in more than 5-1/2 months.
In overseas stock markets, European shares declined. Asian stocks witnessed mixed trend. US stocks registered modest gains yesterday, 15 November 2016, as energy shares climbed on the back of rising crude oil prices. Federal Reserve Vice Chair Stanley Fischer reportedly said yesterday, 15 November 2016, that he was surprised by the outcome of the US presidential election. Fischer cautioned it is too early to fully assess market fallout and said market swings following Britain's vote to leave the European Union provided a cautionary example. Fischer reportedly said that US banking rules may be limiting liquidity for some securities but their impact is not unduly hurting markets.
Back home, the Sensex fell 5.94 points or 0.02% to settle at 26,298.69, its lowest closing level since 25 May 2016. The index rose 316.77 points, or 1.20% at the day's high of 26,621.40. The index fell 65.42 points, or 0.25% at the day's low of 26,239.21.
The Nifty 50 index rose 3.15 points or 0.04% to settle at 8,111.60, its highest closing level since 11 November 2016. The index rose 101.60 points, or 1.25% at the day's high of 8,210.05. The index fell 19.05 points, or 0.23% at the day's low of 8,089.40.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,553 shares declined and 1,048 shares rose. A total of 154 shares were unchanged. The BSE Mid-Cap index rose 0.56%. The BSE Small-Cap index gained 0.05%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 4253.24 crore, lower than turnover of Rs 6529.98 crore registered during the previous trading session.
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Auto stocks edged higher after the public sector oil marketing companies (PSU OMCs) announced reduction in petrol and diesel prices with effect from midnight of 15/16 November 2016. Eicher Motors (up 3.99%), Maruti Suzuki India (up 2.91%), TVS Motor Company (up 2.19%), Bajaj Auto (up 1.36%), Escorts (up 1.11%), Hero MotoCorp (up 0.48%) and Tata Motors (up 0.14%), edged higher. Mahindra & Mahindra (down 0.69%) and Ashok Leyland (down 4.17%), edged lower. PSU OMCs announced reduction in selling price of petrol by Rs 1.46 per litre and reduction in selling price of diesel by Rs 1.53 per litre (excluding state levies).
Shares of most PSU OMCs edged higher. BPCL fell 1.51% to Rs 634.65. HPCL rose 0.02% to Rs 444.25. Indian Oil Corporation (IOCL) rose 0.58% to Rs 288.30. IOCL yesterday, 15 November 2016 announced that the petrol price was decreased by Rs 1.46 per litre and diesel price was cut by Rs 1.53 a litre (excluding state levies) with effect from the midnight of 15/16 November 2016.
GAIL (India) reversed intraday gains. The stock fell 1.71% at Rs 428.50. The stock hit a high of Rs 444.95 and a low of Rs 424 in intraday trade. The company's net profit surged 179.84% to Rs 924.65 crore on 15% decline in total income to Rs 12375.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 15 November 2016.
Net profit was boosted by a turnaround in its petrochemical business and reduction in interest costs. The company's profit before tax (PBT) surged 151% to Rs 1375 crore in Q2 September 2016 over Q2 September 2015.
The company's net profit rose 9% to Rs 924.65 crore in Q2 September 2016 over Q1 June 2016 (excluding the gains from stake sale in Mahanagar Gas), largely on account of better performance in natural gas transmission and petrochemical segment.
During the quarter, GAIL's petrochemical business has seen a turnaround with sales jumping 61% on year-on-year basis. This has resulted in increase in revenue in this segment by 53% to Rs 1358 crore and the profit stood at Rs 104 crore in Q2 September 2016 as against loss of Rs 364 crore in Q2 September 2015.
The increase in net profit during Q2 September 2016 on year on year basis, was also supported by increase in natural gas marketing & transmission volumes by 8% and 12% respectively and liquid hydrocarbon sales by 9%.
Index heavyweight and housing finance major HDFC rose 2.51% to Rs 1,257 after the company said that it intends to raise Rs 2000 crore through issue of senior, secured, non-convertible debentures on private placement basis. HDFC said that the debentures will carry a coupon rate of 7.72% per annum and will have a tenor of 10 years. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the company. The issue will remain open for only one day on 18 November 2016. The announcement was made after market hours yesterday, 15 November 2016.
Index heavyweight and IT major Infosys rose 1.66% at Rs 940.10. The stock hit a high of Rs 956.70 and a low of Rs 926.10 in intraday trade.
Ambuja Cements fell 3.60% to Rs 202.40. ACC fell 1.80% to Rs 1322.30. In a press release yesterday, 15 November 2016, LafargeHolcim announced that its subsidiary Holderind Investments has increased its shareholding in Ambuja Cements by 3.91 crore shares to 125.31 crore shares (63.11% of total Ambuja shares) and in ACC, a subsidiary of Ambuja, by 78.70 lakh shares shares to 84.11 lakh shares (4.48% of total ACC shares). The purchase price will be paid in Indian rupees. The impact on LafargeHolcim's net debt is CHF 325 million. This investment was not included in the Group's net debt objective of around CHF 13 billion at the end of 2016 which should be adjusted accordingly, LafargeHolcim said. India is one of LafargeHolcim's key markets with very solid long term fundamentals and a clear potential for further improvement in business performance. These share purchases further increase the Group's interest in its two strong companies which constitute a solid platform from which to capture future growth, LafargeHolcim said.
Stocks of most public sector banks edged lower. United Bank of India (down 5.03%), Punjab National Bank (down 3.72%), Allahabad Bank (down 3.16%), Bank of Maharashtra (down 3.1%), Indian Bank (down 2.8%), Central Bank of India (down 2.78%), UCO Bank (down 2.17%), Bank of India (down 1.66%), Andhra Bank (down 1.46%), Vijaya Bank (down 1.44%), Punjab & Sind Bank (down 1.37%), Syndicate Bank (down 1.28%), Bank of Baroda (down 0.63%), Union Bank of India (down 0.37%) and State Bank of India (down 0.34%), edged lower. IDBI Bank (up 0.43%), Corporation Bank (up 0.53%) and Canara Bank (up 1.22%), edged higher.
Stocks of private sector banks edged lower. City Union Bank (down 3.47%), Kotak Mahindra Bank (down 2.46%), RBL Bank (down 2.44%), Federal Bank (down 2.03%), ICICI Bank (down 1.13%) and HDFC Bank (down 0.9%), edged lower. IndusInd Bank (up 0.14%) and Yes Bank (up 1.77%), edged higher.
Axis Bank fell 1.48% to Rs 472.05. The bank announced lending rates based on marginal cost of funds to be effective from 18 November 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.65%, for one month will be 8.70% and for three months will be 8.90%. The MCLR on 6-month loans will be 9% and for one-year loans the rate would be 9.05%, the bank said. MCLR for two-year loans would be at 9.10% and loans with three-year maturity would carry an MCLR of 9.15%, the bank said. The announcement was made during market hours today, 16 November 2016.
Meanwhile, the Sensex has fallen 1,218.99 points or 4.43% in two consecutive trading sessions from its close of 27,517.68 on 10 November 2016. The Sensex has fallen 1,631.52 points or 5.84% in November 2016 so far (till 16 November 2016). The Sensex has risen 181.15 points or 0.69% in calendar year 2016 so far (till 16 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,804.08 points or 16.91%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,778.59 points or 9.56%. The Sensex is off 3,726.05 points or 12.41% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, data released by the government after market hours yesterday, 15 November 2016 showed that the all-India general CPI inflation dipped to 4.2% in October 2016 compared with 4.39% in September 2016. The core CPI inflation was nearly flat 4.81% in October 2016 from 4.77% in September 2016.
India's trade deficit in October 2016 widened to $10.16 billion compared with $8.34 billion in the previous month, government data released after market hours yesterday, 15 November 2016 showed. Merchandise exports grew 9.6% year-on-year to $23.5 billion in October, while imports expanded 8.11% year-on-year to $33.67 billion.
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