Key equity barometers turned rangebound in mid-morning trade. Investors across the globe were monitoring the US Presidential elections results.
At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 173.57 points or 0.43% to 40,434.70. The Nifty 50 index added 48.40 points or 0.41% at 11,861.90.
In the broader market, the S&P BSE Mid-Cap index rose 0.14% while the S&P BSE Small-Cap index gained 0.25%.
The market breadth was positive. On the BSE, 1109 shares rose and 1080 shares fell. A total of 155 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,274.40 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,100.92 crore in the Indian equity market on 3 November, provisional data showed.
U.S. Presidential Election:
In-person voting is still on in many parts of the United States. But, early results are pouring in from states where polling has closed. So far, Democratic Party candidate and former vice president Joe Biden has won 223 electoral votes while President Donald Trump has won 212 electoral votes. A candidate needs 270 electoral votes to win the election.
The US Dow Jones Futures were currently up 135 points and Nasdaq futures were up 291 points.
Economy:
IHS Markit India Services PMI rose to 54.1 in October, from 49.8 in September. The figure came above the 50 no-change mark for the first time since February. The latest reading pointed to a solid rate of growth in output that was stronger than its long-run average. The upturn was supported by improved market conditions amid the loosening of COVID-19 restrictions.
The Composite PMI Output Index rose from 54.6 in September to 58 in October, signalling the strongest increase in private sector output in close to nine years. A sharp rise in factory production was accompanied by a return to growth of services activity. (Composite indices are weighted averages of comparable manufacturing and services indices.)
Meanwhile, India's trade deficit narrowed to $8.78 billion in October 2020, compared with trade deficit of $11.76 billion, an improvement by 25.34% YoY.
India's merchandise exports in October 2020 were $24.82 billion, as compared to $26.23 billion in October 2019, showing a fall of 5.4%. The value of India's merchandise imports in October 2020 was $33.6 billion, as compared to $37.99 billion in October 2019, a decline of 11.56%.
Buzzing Index:
The Nifty Realty index fell 1.67% to 226.10. The index has lost 4% in two sessions.
Godrej Properties (down 4.35%), Oberoi Realty (down 1.58%), Sunteck Realty (down 1.37%), DLF (down 0.89%), Sobha Developers (down 0.85%), The Phoenix Mills (down 0.61%) and Prestige Estates (down 0.53%) declined.
Meanwhile, Indiabulls Real Estate (up 1.17%), Omaxe (up 0.61%) and Brigade Enterprises (up 0.27%) advanced.
Earnings Impact:
Ajanta Pharma was down 0.08% to Rs 1608. On a consolidated basis, the company's net profit increased 46.29% to Rs 170.22 crore on a 11.38% rise in revenue from operations to Rs 715.91 crore in Q2 September 2020 over Q2 September 2019.
The drug company's India sales were at Rs 202 crore, down 1%. Total exports in Q2 September 2020 were at Rs 499 crore, a growth of 12% year-on-year. During Q2 September 2020, R&D expenses declined 27.5% to Rs 29 crore (4% of revenue) from Rs 40 crore in Q2 September 2019.
Ajanta Pharma's board approved a proposal to buyback fully paid-up equity share. The company aims to buyback upto 7.35 lakh shares (0.84% of the total number of fully paid-up equity shares) at Rs 1,850 per share. The buyback will be on a proportionate basis through a tender offer route. The company has fixed 13 November 2020 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.
Ratnamani Metals & Tubes fell 1.30% to Rs 1226.80 after consolidated net profit tanked 25.8% to Rs 56.72 crore on 5.5% decrease in net sales to Rs 576.89 crore in Q2 September 2020 over Q2 September 2019.
Prince Pipes gained 0.81% to Rs 235.65 after the company's net profit rose 39.4% to Rs 46.57 crore in Q2 September 2020 from Rs 33.41 crore in Q2 September 2019. Revenue from operations stood at Rs 458.67 crore in Q2 September 2020, nearly 7% rise from Rs 429.23 crore in Q2 September 2019.
Commenting on the results, Parag Chheda, Joint MD of Prince Pipes and Fittings said, We are happy to report another quarter of continued strong performance amidst the existing pandemic situation. Our efforts were driven by sharp focus on the Agri & Plumbing segments and efficient cost optimization measures, translating into robust growth on year on year basis along with healthy margins. We continued to undertake several future-oriented initiatives already in aggressive implementation stages. As we progress, we remain cautious yet optimistic on industry outlook.
Global Markets:
Asian stocks were trading higher on Wednesday. A private survey showed China's service sector activity growing in October, with the Caixin/Markit services Purchasing Managers' index coming in at 56.8.
Hong Kong-listed shares of Alibaba tanked in Wednesday morning trade after the anticipated initial public offering of affiliate Ant Group was suspended amid regulatory concerns.
In US, stocks jumped on Tuesday as investors hoped a clear winner would emerge from the U.S. presidential election and a delayed, or contested, result would be avoided.
Heading into Tuesday's vote, former Vice President Joe Biden held a lead in national polling over President Donald Trump. In swing states, where the election will be decided, polling averages are tighter than the national polls.
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