 "Nifty ends below 8,500; US election weighs")
Benchmark share indices ended flat, amid a rangebound trading session, amid persistent selling by foreign funds while growing uncertainty over Hillary Clinton's victory in the US Presidential election also weighed on market sentiment.
The benchmark S&P Sensex ended down 97 points at 27,430 and the Nifty50 index settled 29 points lower at 8,485. In the broader markets, BSE Midcap and Smallcap indices ended down over 1% each. Market breadth ended weak with 1778 losers and 1174 gainers on the BSE.
"Nifty upheld negative tone on Thursday as well and, more importantly, settled below crucial support zone of 8500. Besides global anxiety, participants were remained concerned with GST Council meet starting today, citing brewing difference between the Centre and states on certain aspects of tax structure. Though it was largely range bound for most part of the trade, but decline in last one hour, pushed it below 8500," Jayant Manglik, President, Retail Distribution, Religare Securities.
Foreign institutional investors (FIIs) were net sellers in equities worth Rs 667 crore on Wednesday, November 2, 2016 as per provisional stock exchange data. FIIs have been net sellers in equities worth Rs 6,286 crore ( US $ 941 crore) since October 10, 2016 to November 1, 2016 except for October 18 when they were marginal buyers.
Economy
A solid and accelerated upturn in incoming new business helped push up growth in India's manufacturing activity in October, the widely tracked Nikkei India Manufacturing Purchasing Managers’ Index showed.
After falling to 52 in September due to a slack in new orders, PMI in October bounced back to 54.5, near to the 43 month high of 5.7 seen in August.
Index Movers
Hero MotoCorp gained 1.6% after the company said its total motorcycle sales rose 3.65% to 6.63 lakh units in October 2016 over October 2015.
ITC ended up 1.3% on expectations that the GST Council at its crucial meeting today is likely to finalise the tax rate including the levy of cess and sort out the vexed issue of jurisdiction over assessees.
State Bank of India (SBI) and ICICI Bank have cut their respective lending rates for home loans to boost housing credit during the festive season. SBI has slashed interest rates by 0.15 per cent for its home loans up to Rs 75 lakh, while ICICI Bank is offering overdraft facility along with home loan. SBI was down over 2% while ICICI Bank ended nearly 1% lower.
Hindalco gained over 4% on upgrade by a foreign brokerage and increased the target price to Rs 190 per share.
ONGC ended down 3.5% after the stock was traded ex-dividend from today. The company's board at its meeting held on October 27, 2016 announced an interim dividend of Rs 4.50 per equity share.
Bharti Infratel extended gains to end over 4% higher amid a media report which suggested that the private equity heavyweight KKR and pension giant Canada Pension Plan Investment Board (CPPIB) are eyeing stake in the company.
Further, Infosys, Wipro and Sun Pharmaceutical Industries from the benchmark Sensex and Nifty50 indices hit their respective 52-week lows on the bourses in intra-day trade today.
Broader Markets
Shares of sugar producers ended over 5% higher after most of them reported robust earnings for the second quarter ended September 30, 2016. Dhampure Speciality Sugars, Ponni Sugars (Erode), Rana Sugars, Simbhaoli Sugars, Uttam Sugar Mills, Thiru Arooran Sugars, Sakthi Sugars and Mawana Sugars were among few trading higher between 5% and 15%.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has tanked over 17% on the back of heavy volumes.
The Exchange has sought clarification from GNFC, with reference to news flashed on ET NOW dated November 03, 2016 stating "Dahej TDI plant shut down post gas leak”, BSE said.
Strides Shasun gained 7% after the pharmaceuticals company announced that Mylan agreed to settle regulatory and general claims on Agila transaction.
Shree Pushkar Chemicals & Fertilisers rallied over 9% after the company announced the start of commercial production of Sulphate of Potash (SOP) around end September 2016.
