A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. At 11:18 IST, the barometer index, the S&P BSE Sensex was off 144.93 points or 0.55% at 25,976.47. The losses for Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently off 54.45 points or 0.69% at 7,860.75. The Sensex was currently trading below the psychological 26,000 level, having alternately moved above and below that mark in intraday trade. Earlier, the Sensex fell below the psychological 26,000 level in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,131 shares rose and 1,000 shares declined. A total of 88 shares were unchanged. The BSE Mid-Cap index was currently down 0.29%. The decline in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.25%, outperforming the Sensex.
Overseas cues were negative. Asian stocks edged lower amid strengthening prospects for higher US interest rates as soon as December and the latest signal of China's weakening economy. The latest data showed that China's consumer price index rose 1.3% in October from a year earlier, slower than a 1.6% rise in September. The reading, on the heels of weak export data over the weekend, is the latest indication of China's slowdown and flagging domestic demand.
Meanwhile, stronger-than-expected US employment report for October 2015 has increased the odds of a Federal Reserve rate increase in December. The Fed-funds futures market is now pricing in 68% probability of an increase in US benchmark interest rate in December 2015. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The next monetary policy review from the Fed is scheduled on 15-16 December 2015.
Metal and mining stocks declined as deceleration in China's consumer inflation in October indicated that domestic demand remains weak in the world's second biggest economy. Hindustan Zinc (down 4.13%), Vedanta (down 1.66%), Tata Steel (down 1.58%), JSW Steel (down 1.13%), National Aluminium Company (down 0.93%) and Steel Authority of India (down 0.76%) edged lower. Jindal Steel & Power (up 0.07%) edged higher. China is the world's largest consumer of steel, copper and aluminum.
China's consumer price index rose 1.3% in October from a year earlier, slower than a 1.6% rise in September. The reading, on the heels of weak export data over the weekend, is the latest indication of China's slowdown and flagging domestic demand.
Meanwhile, copper prices fell in the global commodities markets. High Grade Copper for December 2015 delivery was currently off 0.43% at $2.2205 per pound on the COMEX.
Hindalco Industries slipped after the company's US subsidiary Novelis Inc. reported a net loss of $13 million for Q2 September 2015 against net profit of $38 million in Q2 September 2014. The stock was off 2.57% at Rs 77.75. The stock hit a high of Rs 78.30 and a low of Rs 77.40 so far during the day. Novelis' net sales declined 12.32% to $2482 million in Q2 September 2015 over Q2 September 2014.
NMDC slipped ahead of Q2 earnings. The stock was off 1.56% at Rs 91.75. The stock hit a high of Rs 92.60 and a low of Rs 91.20 so far during the day. The company is scheduled to announce its Q2 September 2015 earnings today, 10 November 2015.
Oil stocks witnessed across the board decline. Among oil exploration and production (E&P) firms, Cairn India (down 3.07%), Oil India (down 2.11%), ONGC (down 3.85%) and Reliance Industries (down 1.73%) edged lower.
In the global commodities markets, Brent for December settlement was up 15 cents at $47.34 a barrel. The contract had fallen 23 cents or 0.48% to settle at $47.19 a barrel during the previous trading session.
Among public sector oil marketing companies (PSU OMCs), BPCL (down 0.89%) and Indian Oil Corporation (down 0.92%) edged lower.
HPCL was off 2.99% after the company reported net loss of Rs 320.50 crore in Q2 September 2015 compared with net profit of Rs 850.21 crore in Q2 September 2014. Total income fell 18.43% to Rs 42367.60 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 9 November 2015.
During Q2 September 2015, the company accounted for zero subsidy from the Government of India (GOI) on sale of PDS Kerosene and domestic liquified petroleum gas (LPG) compared to subsidy of Rs 366.25 crore received from the GOI during Q2 September 2014. During Q2 September 2015, discount from ONGC amounted to Rs 377.99 crore on purchase of crude oil. During Q2 September 2014, discount amounted to Rs 7359.63 crore from ONGC and GAIL (India) on purchase of kerosene, crude oil and domestic LPG from them. Based on the approval from GOI, the company has accounted for budgetary support of Rs 840.89 crore during Q2 September 2015 towards under-recovery on sale of PDS kerosene. During Q2 September 2014, budgetary support amounted to Rs 3918.95 crore towards under-recoveries on sale of kerosene, LPG and diesel.
Shares of InterGlobe Aviation, the promoter of low-cost carrier IndiGo, were trading at Rs 881 on BSE, a premium of 15.16% compared with the initial public offer (IPO) price of Rs 765. The stock debuted at Rs 856, a premium of 11.9% compared with IPO price. The stock hit a high of Rs 898 and a low of Rs 848.10 so far during the day.
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