Key benchmark indices logged decent gains in what was a volatile trading session. The barometer index, the S&P BSE Sensex, rose 132.15 points or 0.48% to settle at 27,591.14. The Nifty 50 index rose 46.50 points or 0.55% to settle at 8,543.55. The Sensex and the Nifty, both, settled at one week high. Volatility was high ahead of the presidential elections in the United States.
PSU bank stocks saw mixed trend. Private bank stocks rose. Most pharma stocks declined.
The Sensex rose 132.15 points or 0.48% to settle at 27,591.14, its highest closing level since 1 November 2016. The Sensex rose 187.85 points, or 0.68% at the day's high of 27,646.84. The index fell 52.23 points, or 0.19% at the day's low of 27,406.76.
The Nifty 50 index rose 46.50 points or 0.55% to settle at 8,543.55, its highest closing level since 1 November 2016. The Nifty rose 62.35 points, or 0.73% at the day's high of 8,559.40. The index fell 16.95 points, or 0.20% at the day's low of 8,480.10 .
The market breadth indicating the overall health of the market was negative. On BSE, 1,528 shares fell and 1,354 shares rose. A total of 128 shares were unchanged. The BSE Mid-Cap index rose 0.36%. The BSE Small-Cap index rose 0.16%. Both these indices underpeformed the Sensex.
The total turnover on BSE amounted to Rs 3130.88 crore, lower than turnover of Rs 3203.53 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (up 1.67%), the S&P BSE Industrials index (up 1.47%), the S&P BSE Oil & Gas index (up 1%), the S&P BSE Basic Materials index (up 0.84%), the S&P BSE Bankex (up 0.83%), the S&P BSE Finance index (up 0.61%), the S&P BSE Utilities index (up 0.5%) outperformed the Sensex. The S&P BSE Energy index (up 0.41%), the S&P BSE Metal index (up 0.37%), the S&P BSE Telecom index (up 0.34%), the S&P BSE Teck index (up 0.33%), the S&P BSE Power index (up 0.33%), the S&P BSE IT index (up 0.33%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.29%), the S&P BSE Consumer Durables index (up 0.21%), the S&P BSE Capital Goods index (up 0.11%), the S&P BSE Realty index (down 0.18%), the S&P BSE FMCG index (down 0.18%) and the S&P BSE Healthcare index (down 1.23%) underperformed the Sensex.
PSU bank stocks saw mixed trend. Indian Bank (up 2.57%), Punjab National Bank (up 0.25%), Bank of Baroda (up 0.64%), Bank of India (up 0.41%) rose. Canara Bank (down 0.97%), Dena Bank (down 1.42%), IDBI Bank (down 0.71%), and Union Bank of India (down 2.74%) dropped.
State Bank of India (SBI) shed 0.04%. The bank announced before market hours today, 8 November 2016, that a meeting of executive committee of the Central board of the bank is scheduled to be held on 10 November to examine and decide for issuance of long term bonds of Rs 5000 crore in domestic and overseas markets for financing of infrastructure and affordable housing (Infra bonds) during the year ending 31 March 2017 (FY 2017) on private placement in tranches at appropriate time.
Vijaya Bank rose 0.97% after the bank said it intends to raise tier 1 capital through private placement of Basel III complaint additional tier 1 bonds of 10 lakh each at par aggregating to Rs 750 crore. The announcement was made after market hours yesterday, 7 November 2016.
Private bank stocks rose. HDFC Bank (up 0.41%), Kotak Mahindra Bank (up 1.17%), RBL Bank (up 0.68%), Axis Bank (up 1.32%), IndusInd Bank (up 0.81%) and Yes Bank (up 1.49%) rose.
ICICI Bank gained 1.6% after net profit rose 2.38% to Rs 3102.27 crore on 41.31% rise in total income to Rs 22759.08 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016. Gross non-performing assets (NPAs) rose to Rs 32178.60 crore as on 30 September 2016 as against Rs 27193.58 crore as on 30 June 2016 and Rs 15857.82 crore as on 30 September 2015. The ratio of gross NPAs to gross advances rose to 6.82% as on 30 September 2016 as against 5.87% as on 30 June 2016 and 3.77% as on 30 September 2015.
The ratio of net NPAs to net advances increased to 3.57% as on 30 September 2016 as against 3.35% as on 30 June 2016 and 1.65% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) jumped 651.75% to Rs 7082.69 crore in Q2 September 2016 over Q2 September 2015.
ICICI Bank's other income in Q2 September 2016 includes gains of Rs 5682 crore relating to sale of 12.63% stake of the bank in the initial public offer of ICICI Prudential Life Insurance Company, which completed its IPO recently. ICICI Bank's net interest income rose 0.04% to Rs 5253 crore in Q2 September 2016 over Q2 September 2015.
State-run Bharat Heavy Electricals (Bhel) rose 2.62% at Rs 142.80 after the company reported net profit of Rs 109 crore in Q2 September 2016 compared with net loss of Rs 180.78 crore in Q2 September 2015. Total income rose 8.65% to Rs 6860.53 crore in Q2 September 2016 over Q2 September 2015. Order backlog stood at Rs 1.03 lakh crore as on 30 September 2016. The result was announced during trading hours today, 8 November 2016.
Hindalco Industries rose 0.36% to Rs 168.10 on reports that a foreign brokerage has maintained buy call on the stock for a target price of Rs 200.
Tata Motors surged 6.25% to Rs 539 on reports that a foreign brokerage has upgraded the stock to outperform from neutral earlier and revised target price on the stock to Rs 720 from Rs 510. Meanwhile, Tata Motors before market hours today, 8 November 2016 in a clarification with regard to news item titled "FIIs raise concerns over Tata Motors Governance" said that it is not in receipt of any such letter as is referred to in the news article and hence, has no comments to offer.
Ashok Leyland gained 2.29% to Rs 91.70 after net profit jumped 70.96% to Rs 294.41 crore on 7.07% drop in total income to Rs 4943.23 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 8 November 2016.
Most pharma stocks declined. Cadila Healthcare (down 2.52%), Strides Shasun (down 0.76%), Sun Pharmaceutical Industries (down 3.35%), Divi's Laboratories (down 2.15%), GlaxoSmithKline Pharmaceuticals (down 1.88%), Aurobindo Pharma (down 1.28%), Cipla (down 1.74%), Lupin (down 0.66%) and Wockhardt (down 1.02%), edged lower. Dr Reddy's Laboratories (up 0.52%), Glenmark Pharmaceuticals (up 0.03%) and Alkem Laboratories (up 2.25%), edged higher.
Sanofi India rose 0.07% after the company's net profit rose 11.17% to Rs 80.60 crore on 7.36% rise in total income to Rs 639 crore in Q3 September 2016 over Q3 September 2015. The result was announced after market hours yesterday, 7 November 2016.
GlaxoSmithkline Consumer Healthcare fell 0.63% after the company's net profit fell 16.62% to Rs 183.72 crore on 5.69% rise in total income to Rs 1138.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016.
FMCG major Britannia Industries fell 2.15% after consolidated net profit rose 6% to Rs 234 crore on 11% growth in revenue to Rs 2430 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016. Commenting on the company's performance, Varun Berry, Managing Director of Britannia Industries said the company has witnessed positive momentum in the market growth over the last few months and expects the impact of good monsoon and flow through the 7th pay commission benefits would continue to support this trend. On the commodity front, prices of key raw material have had a high double digit inflation, which is much beyond what the company had originally estimated. While, the company has initiated price increases and accelerated its cost efficiency program, its focus is on remaining competitive in the market place and gain market share to build a sustainable business, Berry said. He further said that Britannia sees many untapped opportunities in its biscuit business and is actively working on other adjacent macro snacking business opportunities to ensure it stays ahead of market and achieves profitable growth to take it to the next level.
JSW steel rose 3.34% after the company said that crude steel production rose 31% to 13.35 lakh tonnes in October 2016 over October 2015. JSW Steel said that the production of flat rolled products rose 30% to 9.58 lakh tonnes in October 2016 over October 2015. The production of long rolled products rose 36% to 2.79 lakh tonnes in October 2016 over October 2015. The announcement was made during market hours today, 8 November 2016.
Adani Enterprises gained 2.78% after the company announced and Elbit Systems, Israel incorporated a joint venture company named, Adani-Elbit Advanced Systems India (AEASIL) on 07 November 2016 with equity participation in the ratio of 51:49 in the joint venture. The newly incorporated entity belongs to the aerospace and defence manufacturing industry and is yet to commence its business operations. The joint venture is incorporated for the manufacturing of unmanned aerial vehicles in India. The announcement was made during market hours today, 8 November 2016.
Meanwhile, the Sensex has fallen 339.07 points or 1.21% in November 2016 so far (till 8 November 2016). The Sensex has risen 1,473.60 points or 5.64% in calendar year 2016 so far (till 8 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,096.53 points or 22.66%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,486.14 points or 5.11%. The Sensex is off 2,433.60 points or 8.11% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, most European stocks were trading higher today, 8 November 2016, on clearer prospects that Hillary Clinton will become the next US President. Asian stocks edged higher. Japan's Nikkei 225, however, settled lower by 0.03%. US stocks on Monday, 7 November 2016, had their best trading day since March on a percentage basis. Gains were broad, with the Dow Jones Industrial Average reclaiming the key 18,000 level and the S&P 500 snapping its nine-day losing streak, the longest since 1980. The slide had been attributed partly to polls showing a closer contest between Clinton and Republican rival Donald Trump.
The outcome of United States presidential elections of 2016, which will be held today, 8 November 2016, will have a bearing on global stocks. Presidential election will be held between Democratic party candidate Hillary Clinton and Republican party candidate Donald Trump. The results are expected on the next day of elections.
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