A bout of volatility was witnessed as key benchmark indices once again edged lower after trimming losses in mid-morning trade. At 11:14 IST, the barometer index, the S&P BSE Sensex, was off 73.63 points or 0.27% at 26,966.13. The 50-unit CNX Nifty was off 25.15 points or 0.31% at 8,146.05. The Sensex was currently trading below the psychological 27,000 mark having alternately moved above and below that level in intraday trade so far.
In overseas stock markets, Asian stocks edged lower after the US Federal Reserve signalled it may increase its policy rates at the next meeting in December 2015. After a hawkish statement from the Fed, the Fed-funds futures market is now pricing in 43% probability of an increase in US benchmark interest rate in December 2015, compared with a 34% chance before the announcement. The Fed kept its benchmark interest rate unchanged near zero after the conclusion of a two-day monetary policy review yesterday, 28 October 2015.
Indian stocks may remain volatile today, 29 October 2015, as traders roll over positions in the futures & options (F&O) segment from the near month October 2015 series to November 2015 series. The October 2015 derivatives contracts are set to expire today, 29 October 2015.
The market breadth indicating the overall health of the market was positive. On BSE, 1,215 shares rose and 925 shares fell. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently off 0.08%. The fall in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 0.34%, outperforming the Sensex.
Index heavyweight and cigarette major ITC fell 1.2% to Rs 350.50. The stock hit a high of Rs 354.40 and low of Rs 349.15 so far during the day.
Axis Bank extended steep losses registered yesterday, 28 October 2015, triggered by concerns regarding the private sector bank's slippages in Q2 September 2015. The stock lost 2.23% to Rs 472.35. The stock had dropped 7.36% to settle at Rs 482.95 yesterday, 28 October 2015. The stock had ended almost unchanged after seeing intraday volatility on Tuesday, 27 October 2015, in the wake of the announcement of the bank's second quarter results. According to a post earnings research report of a domestic brokerage, Axis Bank sold loans aggregating about Rs 1820 crore to asset reconstruction companies (ARCs) for net consideration of about Rs 650 crore in Q2 September 2015. Axis Bank's gross slippages were Rs 589 crore or 1% of loans in Q2 September 2015 which was lower than gross slippages of Rs 1190 crore or 2.1% of loans in Q1 June 2015. However, adjusted for Rs 1820-crore sale to ARCs, gross slippages were about Rs 2400 crore or 4% of loans in Q2 September 2015, according to the brokerage.
Pharma stocks rose as the rupee edged lower against the dollar. Cadila Healthcare (up 0.48%), Aurobindo Pharma (up 0.25%), Lupin (up 0.52%), GlaxoSmithkline Pharmaceuticals (up 0.37%), Cipla (up 0.91%), Divi's Laboratories (up 1.34%) edged higher. Wockhardt (down 0.17%) and Glenmark Pharmaceuticals (down 0.45%) edged lower. A weak rupee will boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
Dr Reddy's Laboratories rose 1.6% at Rs 4,173.10. The company is set to announce its Q2 September 2015 results today, 29 October 2015.
Sun Pharmaceutical Industries was off 1.18%. The company after market hours yesterday, 28 October 2015, announced the successful completion of the cash tender offer by Thea Acquisition Corp (Thea), an indirect wholly owned subsidiary of Sun Pharma, for all outstanding shares of common stock of InSite Vision Incorporated (InSite). Thea now intends to exercise its option under the merger agreement (the top-up option) to purchase directly from InSite an additional number of shares so as to give it ownership of atleast 90% of the outstanding shares of InSite common stock.
Shares of oil exploration and production firms rose whereas stocks of public sector oil marketing companies (PSU OMCs) declined after global crude oil prices surged yesterday, 28 October 2015.
Among oil E&O stocks, Cairn India (up 1.37%), Oil India (up 1.62%), Reliance Industries (RIL) (up 0.59%) and ONGC (up 0.06%) gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Among shares of public sector oil marketing, BPCL (down 1.46%) and HPCL (down 1.32%) declined. Indian Oil Corporation rose 0.11%. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent for December settlement was currently off 29 cents at $48.76 a barrel. The contract had surged $2.24 a barrel or 4.78% to settle at $49.05 a barrel during the previous trading session.
Powered by Capital Market - Live News
