 "Nifty hovers around 8,700; midcap, smallcap outshine")
Benchmark indices continue to trade in a narrow range with negative bias weighed down by selling pressure among IT and oil shares.
By 11:25 am, the benchmark S&P Sensex was at 28,043 levels down 64 points while Nifty50 index fell 24 points at 8,686 levels. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.1% each.
Top losers from the Sensex pack are Cipla, HDFC, Bajaj Auto, TCS and Asian Paints, all down over 1%. On the gaining side, Tata Steel, Tata Motors, M&M, Axis Bank and Lupin are up 1%-2%.
Tata Motors has moved higher by 2% to Rs 563 on the BSE after the company said Jaguar Land Rover (JLR) achieved a strong 28% year on year growth in global sales during the month of September.
Among other shares, NR Agarwal Industries has surged 10% to Rs 202 on BSE in an otherwise weak market after the company said that it has exited from corporate debt restructuring (CDR).
Fiem Industries has hit a record high of Rs 1,260, up 4% on the National Stock Exchange (NSE) in early morning trade after the company said it has signed technology License and assistance agreement with Japanese companies Aisan Industry Co and Toyota Tsusho Corporation for manufacturing Canister.
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Updated at 9:50 am
Key benchmark indices are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone in early trade. At 9:50 IST, the S&P BSE Sensex was down 33 points or 0.1% at 28,073. The Nifty 50 index was up 13 points or 0.15% at 8,696.
"The occurrence of a ‘Doji’ formation near the upper end of the oscillating range augurs well for termination of pullback. Nifty remained under pressure post the ‘Doji’ formation & a close below 8730 in today’s session has activated the bearish implications of the pattern. We expect nifty to drift lower towards the lower end of the oscillating range placed near 8550.Trading shorts could be added with an expectation of a reversal towards the lower end of the broad range placed near 8550," said Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal Securities.
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.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,090 shares gained and 482 shares fell. A total of 96 shares were unchanged. The BSE Mid-Cap index was up 0.41%. The BSE Small-Cap index was up 0.46%. Both these indices outperformed the Sensex.
CORPORATE NEWS
Tata Steel rose 0.8% after the company announced that its hot metal production rose 17% to 3.12 million tonnes in Q2 September 2016 over Q2 September 2015. Crude steel production rose 13% to 2.82 million tonnes in Q2 September 2016 over Q2 September 2015.
Saleable steel production increased by 11% to 2.71 million tonnes in Q2 September 2016 over Q2 September 2015. The company's sales rose 12.44% to 2.62 million tonnes in Q2 September 2016 over Q2 September 2015.
Reliance Industries (RIL) rose 0.21% after the company before market hours today, 7 October 2016 said that Reliance Jio Infocomm (RJIL) has successfully acquired the right to use 269.2 MHz (UL+DL) spectrum across all 22 service areas in India in the recently concluded spectrum auction conducted by DOT, Government of India. RJIL's spectrum footprint ensures availability of spectrum in all the three bands across the country and enhances its network capacity at negligible incremental capital and operating expenditure.
Bharti Airtel rose 0.05% after the company before market hours today, 7 October 2016 announced that it has acquired 173.8 Mhz spectrum across 1800/2100/2300 MHz bands for a total consideration of Rs 14244 crore in the latest spectrum auction conducted by the Department of Telecom, Government of India.
Airtel said it has further strengthened its pan-India spectrum portfolio and secured its spectrum requirements for the next 20 years. The company now has 4G and 3G spectrum in all circles, giving it the widest mobile broadband footprint across the country.
Kotak Mahindra Bank slipped 0.33% after the bank announced that it has revised its base rate downwards by 10 basis points (bps) to 9.4% per annum with effect from 7 October 2016. All categories of loans (other than the exceptions permitted by RBI) will be priced with reference to the revised base rate.
Idea Cellular rose 0.13% after the company announced before market hours today, 7 October 2016 that the company has successfully completed its pan-India mobile broadband footprint and significantly boosted its capacity spectrum portfolio in the recently concluded spectrum auction conducted by DOT, Government of India.
Idea is now well equipped to offer 4G services on its own spectrum across 20 service areas including 9 new service areas. It has also procured 3G spectrum in Bihar & Rajasthan extending its capability to offer 3G services to 15 service areas.
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