The market barometers fluctuated between gains and losses in mid-morning trade. At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 6.36 points or 0.02% at 40,308.32. The Nifty 50 index was down 3.25 points or 0.03% at 11,938.05.
The S&P BSE Mid-Cap index was down 0.13%. The S&P BSE Small-Cap index was down 0.03%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1037 shares rose and 1010 shares fell. A total of 116 shares were unchanged. In Nifty 50 index, 26 stocks advanced and 24 stocks declined.
India on Monday declined to join a 16-nation grouping led by China known as the Regional Comprehensive Economic Partnership (RCEP).
RCEP is a proposed agreement between the member states of the Association of Southeast Asian Nations (Asean) and its free trade agreement (FTA) partners. The pact aims to create an integrated market with 16 countries, making it easier for products and services of each of these countries to be available across this region. The RCEP countries include the 10 members of the Association of Southeast Asian Nations, plus China, Japan, South Korea, Australia and New Zealand.
A summit of the leaders of RCEP left open the door for India to still join if it can resolve issues before the deal is set to be signed in 2020.
Macro data:
The IHS Markit India Services Business Activity Index rose to 49.2 in October 2019 from 48.7 in September 2019.
The Composite PMI Output Index fell from 49.8 in September 2019 to 49.6 in October 2019.
The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month and below 50 an overall decrease.
Stocks in spotlight:
Varun Beverages surged 8.65% to Rs 684.25. A global brokerage has maintained buy rating with a price target of Rs 860 per share. The company has posted strong growth in the international segment and it remains as our preferred pick in the consumer space, the brokerage said.
On a consolidated basis, the soft drinks maker reported 90.9% increase in net profit to Rs 80.73 crore on a 49.2% rise in net sales to Rs 1739.73 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours yesterday, 4 November 2019.
Adani Transmission rose 1.53% to Rs 288.80. The company's board will consider raising funds by way of issuance of USD denominated foreign currency bonds, increasing of limits for raising external commercial borrowings (ECBs) and buy-back of non-convertible debentures (NCDs) and INR bonds ( masala bonds) at its meeting scheduled to be held on Thursday, 7 November 2019.
CreditAccess Grameen jumped 4.58% to Rs 699.30. The company has finalized the terms of issue of unlisted, unrated, senior secured, redeemable, transferable non-convertible debentures of Rs 10 lakh each aggregating to Rs 214 crore to Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. (FMO) on preferential basis.
Foreign markets:
Overseas, Asian stocks were trading higher Tuesday following record closes overnight on Wall Street. A private survey of China's services sector showed activity slowing to a eight month low in October. The Caixin/Markit services Purchasing Managers' Index (PMI) for October came in at 51.1 - its lowest reading since February. The 50-point level separates expansion from contraction in PMI readings.
The US stock market finished session at fresh record high on Monday, 4 November 2019, as investors risk sentiments boosted up on hopes of a U.S.-China trade deal, third-quarter earnings season, and an improving U.S. economy.
Media reports suggested that US President Donald Trump has invited his Chinese counterpart Xi Jinping to sign the phase one of a bilateral trade deal when it is agreed upon.
The U.S. market commenced trading with firm footing after Mr. Ross's comments reignited hopes that an initial agreement is in the cards. The U.S. Commerce Secretary Wilbur Ross said on Sunday that U.S.-China trade deal expected to be signed between U.S. President Donald Trump and Chinese President Xi Jinping. Ross said the agreement could be reached by the two leaders in one of several locations, including Iowa, Alaska, Hawaii or somewhere in China.
The deal was originally anticipated to be inked at this month's Asia-Pacific Economic Cooperation summit in Chile, an event that has since been canceled due to protests in the country. Last month, the U.S. and China agreed to finalize the first phase of a trade agreement, which includes a pause in tariff escalation and China buying U.S. agriculture products.
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