Key benchmark indices were trading with small losses after slipping into the red in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 34.53 points or 0.13% to 27,492.69. The Nifty 50 index was currently down 4.65 points or 0.05% at 8,510.40. Subdued Asian stocks following uncertainty over the outcome of the upcoming US presidential election weighed on sentiment. However, a private survey showing a pick up in India's services activity in September capped losses. Earlier during the day, the Sensex hit its lowest level in over 16 weeks while the Nifty hit its lowest level in over 15 weeks, amid rangebound trade around the flat line.
The market breadth indicating the overall health of the market was strong. On BSE, 1,641 shares advanced and 1,070 shares declined. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently down 0.61%. The BSE Small-Cap index was currently down 0.15%. The decline in both the indices was higher than the Sensex's decline in percentage terms.
Realty stocks were mixed. DLF (up 0.17%), Indiabulls Real Estate (up 0.01%), Unitech (up 0.02%), Godrej Properties (up 1.51%), and Oberoi Realty (up 3.29%) edged higher. D B Realty (down 1.16%), Sobha (down 0.92%), NBCC (down 0.29%), and Housing Development & Infrastructure (HDIL) (down 0.19%) dropped.
IT stocks were also trading mixed. HCL Technologies (up 0.06%), TCS (up 0.33%), and Tech Mahindra (up 0.02%) gained. Infosys (down 0.97%), Oracle Financial Services Software (down 0.66%), MphasiS (down 2.6%) and Wipro (down 1.35%) edged lower.
Bharti Infratel rose 4.16% on reports that a foreign brokerage has upgraded the stock to neutral from underperform.
Sangam (India) rose 2.55% after the company said it has secured new export orders worth Rs 35 crore from Egypt, Saudi Arabia, Latin America and Afghanistan. The announcement was made during market hours today, 3 November 2016. The new export orders are to be executed in the next four months. As on date, the company's pending order book position stands at Rs 238.22 crore of which Rs 125.60 crore pertain to exports. The company is targeting export revenue of Rs 450 crore in the current financial year.
Pincon Spirit rose 5.14% after the company said it increased prices of Indian made foreign liquor brands following revision of excise policy by West Bengal Government. The announcement was made during trading hours today, 3 November 2016. Pincon Spirit said it has taken a decision to increase the maximum retail price (MRP) of its Indian Made Foreign Liquor (IMFL) brands. The decision was taken after the West Bengal Government, on 28 October 2016, revised its excise policy, whereby IMFL industry in West Bengal is on for a affirmative operating indication. The company raised prices of its brands like Pincon No.1 Whisky, Pincon XXX Matured Rum, Pincon Perfect Vodka, Pincon King's Coin Whisky/Rum/Vodka, Highland Blue Whisky, Ultra Force Jamaican Rum and Ruby Gold Gin.
On the macro front, the Nikkei India Services Purchasing Managers' Index, or PMI, rose to 54.5 in October from 52 in September. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy, Pollyanna De Lima, economist at IHS Markit said. She added that one underlying concern is the sustained stagnant trend in workforces, with both manufacturers and service providers showing some reluctance to hire.
Meanwhile, international rating agency Standard & Poor's (S&P) yesterday, 2 November 2016 affirmed "BBB-/A-3" rating with stable outlook for India. The stable outlook balances India's sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances, S&P said. The ratings on India reflect the country's sound external profile and improved monetary credibility, the agency said. The outlook indicates that rating agency does not expect to change its rating on India this year or next, based on its current set of forecasts, it said. Improvements in policy making continue to strengthen the prospects for India's economic and fiscal performance. Wide fiscal deficits, a heavy debt burden, and low per capita income nonetheless detract from the sovereign's credit profile, it added.
In overseas stock markets, most Asian stocks dropped with uncertainty over next week's US presidential election sending investors rushing for the sidelines. China's Shanghai Composite rose 0.84%. Activity in China's service sector expanded at a faster pace in October, a private gauge showed today, 3 November 2016, adding to recent signs of firmness in China's economy. The Caixin China services purchasing managers' index rose to a four-month high of 52.4 in October from 52 in September, Caixin Media Co. and research firm Markit said.
US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.
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