After hitting intraday low in morning trade, the key benchmark indices staged a mild recovery in mid-morning trade. At 11:25 IST, the S&P BSE Sensex was down 38.14 points or 0.13% at 28,296.41. The Nifty 50 index was currently down 13.70 points or 0.16% at 8,755.45. 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, 1,477 shares gained and 910 shares fell. A total of 120 shares were unchanged. The BSE Mid-Cap index was up 0.33%. The BSE Small-Cap index was up 0.48%. Both these indices outperformed the Sensex.
Most FMCG stocks rose. Hindustan Unilever (up 1.49%), Marico (up 0.64%), Tata Global Beverages (up 1.9%), Procter & Gamble Hygiene and Health Care (up 2.94%), Bajaj Corp (up 0.2%), GlaxoSmithkline Consumer Healthcare (up 0.03%), Dabur India (up 0.42%) rose. Godrej Consumer Products (down 1.06%), Colgate-Palmolive (India) (down 0.46%), Nestle India (down 0.08%), Jyothy Laboratories (down 1.16%), Britannia Industries (down 0.55%) fell.
Vedanta rose on reports the company is contemplating to revive The Madras Aluminium Company. The stock was up 2.19% to Rs 191.25. The stock hit a high of Rs 192.15 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 188.05 so far during the day. While ruling out any aluminium production, the company is discussing internally if The Madras Aluminium Company (Malco) unit in Tamil Nadu could be used for recycling purposes, reports suggested. Malco used to be a major aluminium producer, encompassing mining, refining and smelting. Currently, it is only into power generation, reports stated.
Separately, media reports suggested that Vedanta expects that Goa will export around 20 million tonnes of iron ore in the current fiscal. Goa produces low grade iron ore which is exported to China. After removal of the mining ban by the Supreme Court in 2014, the state is allowed to mine 20 million tonnes, with the highest share of 5.5 million tonnes going to Vedanta, reports suggested.
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Realty stocks gained. DLF (up 3.03%), Indiabulls Real Estate (up 2.09%), Housing Development and Infrastructure (up 2.1%), D B Realty (up 2.05%), Sobha (up 0.88%), Prestige Estates Projects (up 0.45%), Oberoi Realty (up 1.63%) rose. Parsvnath Developers (down 0.29%), Godrej Properties (down 0.48%) and Unitech (down 0.16%) fell.
NBCC (India) rose 2.36% after the company said it has secured orders worth about Rs 1117.34 crore in September 2016. The announcement was made after market hours yesterday, 4 October 2016.
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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