Key barometers ended the session lower as investors took some cash off the table after indices scaled record highs in the previous trading session. The barometer index, the S&P BSE Sensex, fell 53.03 points or 0.16% to 33,213.13, as per the provisional closing data. The Nifty 50 index fell 24.45 points or 0.24% to 10,339.20, as per the provisional closing data.
Indices opened lower, tracking mixed cues in the Asian market and lower close for US stocks overnight. Trading turned volatile as the session proceeded as key benchmark indices re-entered negative terrain after hitting fresh intraday high in morning trade. Stocks hit fresh intraday low in mid-morning trade as selling pressure intensified. Market recovered from lower level later during the session and were trading in a narrow range in negative terrain.
The Sensex rose 28.14 points, or 0.08% at the day's high of 33,294.30 in morning trade. The index fell 101.88 points, or 0.31% at the day's low of 33,164.28 in mid-afternoon trade, its lowest level since 27 October 2017. The Nifty rose 4.05 points, or 0.04% at the day's high of 10,367.70 in morning trade. The index fell 39.70 points, or 0.38% at the day's low of 10,323.95 in mid-morning trade, its lowest level since 27 October 2017.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.14%. The BSE Small-Cap index provisionally rose 0.46%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,400 shares rose and 1,323 shares fell. A total of 161 shares were unchanged.
The total turnover on BSE amounted to Rs 4801.21 crore, higher than turnover of Rs 4282.12 crore registered during the previous trading session.
Dabur India rose 3.97% after consolidated net profit adjusted for GST and currency translations grew by 7.2% to Rs 361.90 crore on 8% growth in revenue to Rs 1958.90 crore in Q2 September 2017 over Q2 September 2016. The result was announced during market hours today, 31 October 2017.
With the GST headwinds settling down and improved consumer offtake in domestic markets, Dabur India reported a strong surge in the domestic consumer growth during Q2 September 2017. However, the overseas business performance was hit by a combination of steep currency devaluation in Egypt, Turkey and Nigeria, and the continued geopolitical disturbances in key geographies, Dabur said in a statement.
Dabur India's chief executive officer Sunil Duggal said that the company has lined up a number of exciting initiatives and are committed to aggressively launch new products leveraging on its Ayurvedic heritage and cutting-edge science.
Axis Bank surged 8.40% after reports suggested that private equity firm, Bain Capital is in advanced talks with the bank to invest between $750 million and $1 billion. As per reports, Bain Capital is in advanced talks with the bank to invest between $750 million and $1 billion (Rs 4800-6400 crore), in what could be one of the largest private equity investments in the Indian banking sector.
The bank is in talks to raise money amidst worsening asset quality and regulatory glare. Bain's proposed investment will come as a primary issuance of shares through a preferential allotment that will allow the PE fund to own up to 5% of the bank. The transaction will help Axis meet capital requirements for the medium term as competition intensifies in Indian banking, report added.
Axis Bank's gross non-performing assets (NPAs) rose to Rs 27402.32 crore as on 30 September 2017 from Rs 22030.87 crore as on 30 June 2017 and Rs 16378.65 crore as on 30 September 2016. The ratio of gross NPAs to gross advances rose to 5.9% as on 30 September 2017 from 5.03% as on 30 June 2017 and 4.17% as on 30 September 2016. The ratio of net NPAs to net advances rose to 3.12% as on 30 September 2017 from 2.3% as on 30 June 2017 and 2.02% as on 30 September 2016.
Central Bank of India lost 1.26% after the bank reported net loss of Rs 750.41 crore in Q2 September 2017, higher than net loss of Rs 641.82 crore in Q2 September 2016. The result was announced after market hours yesterday, 30 October 2017.
The bank's total income dropped 1% to Rs 6896.26 crore in Q2 September 2017 over Q2 September 2016. The bank's gross non-performing assets (NPAs) stood at Rs 31641.15 crore as on 30 September 2017 as against Rs 31398.47 crore as on 30 June 2017 and Rs 25717.95 crore as on 30 September 2016. The ratio of gross NPAs to gross advances stood at 17.27% as on 30 September 2017 as against 18.23% as on 30 June 2017 and 13.7% as on 30 September 2016. The ratio of net NPAs to net advances stood at 9.53% as on 30 September 2017 as against 11.04% as on 30 June 2017 and 8.17% as on 30 September 2016. The bank's provisions and contingencies rose 18.08% to Rs 1961.66 crore in Q2 September 2017 over Q2 September 2016.
Bharat Electronics jumped 5.04% after net profit rose 19.1% to Rs 412.39 crore on 46.1% rise in net sales to Rs 2431.73 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 30 October 2017.
Dr. Reddy's Laboratories fel 0.32%. On a consolidated basis, Dr Reddy's Laboratories' (DRL) net profit fell 3.42% to Rs 284.90 crore on 1.1% decline in revenue to Rs 3546 crore in Q2 September 2017 over Q2 September 2016. The result was announced during trading hours today, 31 October 2017.
The company's consolidated earnings before interest, tax, depreciation and amortization (EBITDA) grew by 7.28% to Rs 688.80 crore in Q2 September 2017 over Q2 September 2016. EBITDA margin improved to 19.4% in Q2 September 2017, from 17.9% in Q2 September 2016.
G.V. Prasad, CEO and Co-Chairman of DRL said that healthy performance in India, emerging markets, Europe and PSAI businesses as well as continued focus on cost control, have contributed to sequential growth in the company's top line as well as bottom line, with an EBITDA increase of 105% over the previous quarter. Looking ahead, DRL expects to see results from products launched in the US during the first half of this fiscal.
DRL will continue to focus on the launching of new products as well as on improving operational efficiencies and quality management systems across the company, Prasad said.
Tata Power Company fell 1.05%. The company announced that its board will consider issuing of non-convertible debentures (NCDs) on private placement basis at its meeting scheduled on 3 November 2017. The announcement was made during trading hours today, 31 October 2017.
LIC Housing Finance fell 3.22% after net profit fell 1.13% to Rs 489.12 crore on 6.49% growth in total revenue to Rs 3716.62 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 30 October 2017.
State-run NTPC fell 1.42%. The company informed that Unit#2 of 250 MW of Bongaigaon Thermal Power Project (3 X 250 MW) will be declared on commercial operation from 1 November 2017. With this, the commercial capacity of NTPC would become 43642 MW and that of NTPC Group would become 50858 MW. The announcement was made during trading hours today, 31 October 2017.
Realty shares were mixed. DLF (up 6.92%), Peninsula Land (up 6.21%), Phoenix Mills (up 3.85%), Oberoi Realty (up 3.55%), Prestige Estates Projects (up 2.90%), Indiabulls Real Estate (up 1.75%), D B Realty (up 0.80%), Godrej Properties (up 0.53%) and Omaxe (up 0.27%), edged higher. Unitech (down 0.44%), Parsvnath Developers (down 0.45%), Housing Development and Infrastructure (HDIL) (down 0.59%), Sunteck Realty (down 0.69%), Mahindra Lifespace Developers (down 1.62%), Sobha (down 2.07%) and Anant Raj (down 2.11%), edged lower.
Overseas, European shares were trading higher, supported by a jump in the shares of oil firm BP, which announced buoyant earnings and a share buyback program. Germany's stock market was closed for a holiday.
Investors looked ahead to key central bank policy decisions from the US Federal Reserve and the Bank of England. The US Federal Reserve holds a two-day policy meeting on Tuesday, 31 October 2017, and Wednesday, 1 November 2017, at which it is expected to leave rates unchanged. Most market participants expect the US central bank to resume hiking rates in December 2017.
The Bank of England is widely expected to raise rates on Thursday, 2 November 2017, reversing its monetary easing following Britain's June 2016 vote to leave the European Union.
Eurostat, the European Union's statistics agency, said Tuesday, 31 October 2017, that the eurozone economy grew by 0.6% during the July to September period. Though that's slightly down on the stellar 0.7% tick recorded in the second quarter.
Separately, Eurostat said unemployment fell to 8.9% in September from 9% the previous month. That's the lowest rate since January 2009.
Elsewhere, Eurostat said annual inflation in the eurozone dipped to 1.4% in October from 1.5% as the core rate, which strips out volatile items, surprisingly fell to 0.9% from 1.1%.
The French economy recorded solid growth in the third quarter, suggesting that recovery in the Eurozone's second-largest economy remains on track. Gross domestic product rose by 0.5% in the quarter and at an annual rate of 2.2%, French statistics agency Insee said.
Most Asian stocks ended on a mixed note following weak closing in the US market and as investors digested data that showed China's official manufacturing PMI for October missed economists' expectations. Japan's Nikkei 225 ended lower by 0.04% after the Bank of Japan (BoJ) lowered some of its price forecasts and left policy unchanged Tuesday. The Japanese central bank voted 8-1 to keep its short- and long-term interest rates unchanged as it continues to inject huge amounts of cash into the financial sector in the hope of reaching its 2% inflation goal.
An official gauge of China's factory activity edged down in October, indicating softening business activity after hitting a more-than-five-year high in September. The official manufacturing purchasing managers' index fell to 51.6 in October from 52.4 in September, government data showed. Separately, China's official nonmanufacturing purchasing managers' index, a measure of activity outside of factory gates, fell to 54.3 in October from 55.4 in September, the National Bureau of Statistics said
US stocks ended lower overnight as a report that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately weighed on investors' confidence. Tax cuts are the centerpiece in President Donald Trump's business-friendly agenda and are viewed as critical to sustaining the stock market rally. The Dow Jones Industrial Average shed 0.4%, the S&P 500 index fell 0.3%, and the Nasdaq Composite Index set a fresh intraday record, but slid 2.30 points to 6,698.96.
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