A bout of volatility was witnessed in today's trade as key benchmark indices ended lower after hitting over two weeks high in morning trade. The barometer index, the S&P BSE Sensex, fell 90.42 points or 0.28% to 31,833.99, as per the provisional closing data. The Nifty 50 index fell 44.65 points or 0.45% to 9,972.30, as per the provisional closing data.
The Sensex provisionally ended below the psychologically important 32,000 mark after breaching that level in opening trade. The Nifty provisionally ended below the psychologically important 10,000 mark. The Sensex and the Nifty, both declined in afternoon trade after hitting their highest intraday levels in more than two weeks in morning trade.
The Sensex fell 155.01 points, or 0.49% at the day's low of 31,769.40 in mid-afternoon trade, its lowest intraday level since 9 October 2017. The index rose 174.05 points, or 0.55% at the day's high of 32,098.46 in morning trade, its highest intraday level since 22 September 2017. The Nifty fell 61.15 points, or 0.61% at the day's low of 9,955.80 in mid-afternoon trade, its lowest intraday level since 9 October 2017. The index rose 50.30 points, or 0.50% at the day's high of 10,067.25 in mid-morning trade, its highest intraday level since 22 September 2017.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 0.82%. The BSE Small-Cap index provisionally fell 1.08%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,809 shares fell and 937 shares rose. A total of 104 shares were unchanged. The breadth was strong earlier during the session.
The total turnover on BSE amounted to Rs 4108.06 crore, higher than turnover of Rs 3898.09 crore registered during the previous trading session.
Telecom major Bharti Airtel rose 4.99% at Rs 403.20. The company and Karbonn Mobiles, a popular Indian smartphone brand, announced a partnership to bring an affordable 4G smartphone to the market, effectively at the price of a feature phone. Under the partnership, the Karbonn A40 Indian now comes at an effective price of just Rs 1,399 (compared to its current market price of approximately Rs 3499). The Google Certified Karbonn A40 Indian has a full touch screen plus dual SIM slots, and offers complete access to all apps on Google Play Store. The 4G smartphone is bundled with a monthly pack of Rs 169 from Airtel, which offers generous data and calling benefits. The announcement was made during trading hours today, 11 October 2017.
Telecom tower infrastructure provider Bharti Infratel rose 2.51% to Rs 410.25 on media reports that a consortium led by US buyout fund KKR and comprising Canada Pension Plan Investment Board, Abu Dhabi Investment Authority and GIC Singapore is in discussions to acquire Indus Towers and telecom tower company Bharti Infratel for $11 billion.
As the first step, Bharti Infratel will buy out either all or almost the entire 58% shareholding of other partners Vodafone, Idea Cellular and Providence Equity Partners in Indus Towers, reports added. Bharti Infratel currently owns 42% in Indus Towers, which has a portfolio of 1.23 lakh towers, as per reports. Bharti Airtel held 50.33% stake in Bharti Infratel as per the shareholding pattern as on 30 June 2017.
Reports suggested that Vodafone is likely to retain 8-10% stake in Indus Towers to enjoy any future upside. Bharti Infratel has the right of first refusal on Vodafone and Idea's stakes in Indus Towers, reports added.
Bharti Infratel clarified to the bourses during trading hours today, 11 October 2017, that it does not comment on speculative reports.
Metal shares declined. Bhushan Steel (down 4.82%), Steel Authority of India (down 3.51%), Jindal Steel & Power (down 3.39%), Hindustan Copper (down 2.96%), Vedanta (down 2.44%), Hindustan Zinc (down 1.62%), Tata Steel (down 1.41%), JSW Steel (down 1.06%), Hindalco Industries (down 0.97%) and NMDC (down 0.95%), edged lower. National Aluminium Company rose 1.67%.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for December 2017 delivery was currently down 0.16% at $3.0555 per pound on the COMEX.
Engineering and construction major L&T fell 0.95% at Rs 1,132. The company announced during trading hours today, 11 October 2017, that its wholly-owned subsidiary, L&T Hydrocarbon Engineering, has bagged an offshore contract for the transportation & installation - Daman development project from ONGC valued at approximately Rs 1150 crore. The contract, won against international competitive bidding, encompasses total engineering, procurement, construction, installation and commissioning for the project.
Drug major Lupin fell 1.38% to Rs 1,046. The company announced during trading hours today, 11 October 2017, that its US subsidiary, Lupin, Inc., has acquired Symbiomix Therapeutics, LLC. Lupin had entered into an option to acquire the company earlier this year. Symbiomix is a privately held company focused on bringing innovative therapies to market for gynecologic infections that can have serious health consequences. The acquisition has been made for a cash consideration of $150 million including a $50 million upfront and other time-based payments. In addition, there are sales based contingent payments. The acquisition is funded from internal funds. The transaction was closed today, 11 October 2017. The acquisition of Symbiomix and the Solosec franchise significantly expands Lupin's branded women's health specialty business, which is presently anchored by Methergine (methylergonovine) tablets.
On the macro front, global economic upswing has strengthened and is broad-based, the International Monetary Fund (IMF) said in its latest World Economic Outlook released on 10 October 2017, as it raised the growth projections for the world economy for this year and next. The growth forecast for this year was raised to 3.6% from 3.5% and the outlook for next year was lifted to 3.7% from 3.6%. The world economy grew 3.2% in 2016, which was the weakest since the global financial crisis. However, the recovery is incomplete, the IMF said, citing low wage growth, challenges faced by commodity exporters, subdued trends of productivity and demographics.
India's economic growth for 2017 and 2018 will be slower than earlier projections, IMF further said. The report cited lingering impact of demonetisation and the Goods and Services Tax (GST) for the expected slow down during the current and the next year. The IMF projected India to grow at 6.7% in 2017 and 7.4% in 2018, which are 0.5% and 0.3% less than the projections earlier this year, respectively. The IMF has meanwhile revised upwards, India's growth performance for 2016 in its latest calculations, owing to strong government spending and data revisions in India, which is now 7.1% as opposed to 6.8% in April.
Overseas, most European stocks were trading lower as investors continued to monitor ongoing political uncertainty. The Spanish government is meeting in Madrid on Wednesday in a bid to shore up its response to the Catalan independence movement. Catalan President Carles Puigdemont and other leaders in the region yesterday, 10 October 2017, signed a document proclaiming independence from Spain, although they also suspended the move for the coming weeks, following an unofficial referendum earlier this month that led to unrest and a loss of business confidence in the region.
Asian stocks ended on a mixed note. The US stock market rose to record highs on Tuesday after Wal-Mart announced a large buyback and Honeywell said it was splitting into two. The Dow Jones Industrial Average gained 0.31% to hit a new all time high, while the S&P 500 index climbed 0.23%, and the Nasdaq Composite index added 0.11%.
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