Key equity benchmarks hovered in a small range in positive zone in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 67.53 points or 0.2% at 33,640.75. The Nifty 50 index was up 18.35 points or 0.18% at 10,442.15. Both the Sensex and the Nifty turned volatile after scaling record high in early trade. Realty stocks gained. Tyre stocks rose.
Key benchmark indices drifted higher in early trade with both the Sensex and the Nifty scaling record high. Volatility struck bourses in morning trade as the key benchmark indices regained positive zone soon after erasing early gains to sink in negative zone. Stocks regained strength in mid-morning trade.
The S&P BSE Mid-Cap index was up 0.1%, underperfoming the Sensex. The S&P BSE Small-Cap index was up 0.7%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,472 shares rose and 1,068 shares fell. A total of 115 shares were unchanged.
Realty stocks gained. DLF (up 3.25%), Peninsula Land (up 0.74%), Indiabulls Real Estate (up 0.36%), Housing Development and Infrastructure (up 2.13%), D B Realty (up 1.2%), Unitech (up 4.74%) and Oberoi Realty (up 1.29%) rose. Sobha (down 0.58%), Godrej Properties (down 0.58%), Prestige Estates Projects (down 0.55%) fell.
Tyre stocks rose. JK Tyre & Industries (up 1.03%), Balkrishana Industries (up 0.47%), CEAT (up 0.64%), Goodyear India (up 0.48%), MRF (up 0.88%) and TVS Srichakra (up 0.61%) gained. Apollo Tyres (down 0.74%) fell.
Hathway Cable & Datacom was locked at 20% upper circuit at Rs 38.25 after the company reported net profit of Rs 14.01 crore in Q2 September 2017, compared with net loss of Rs 40.44 crore in Q2 September 2016. Hathway Cable & Datacom's net sales declined 58.9% to Rs 131.04 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 2 November 2017.
Berger Paints India fell 2.56% after consolidated net profit fell 19.77% to Rs 111.34 crore on 11.79% increase in net sales to Rs 1281.71 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 2 November 2017.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11.38% to Rs 199.13 crore in Q2 September 2017 over Q2 September 2016.
Berger Paints India said that its Q2 September 2017 net profit is not comparable with corresponding period of the previous year since the net profit in Q2 September 2016 included proportionate gain of Rs 44.20 crore on slump sale of the company's paint division relating to four-wheeler passenger cars, SUVs, three-wheelers and related ancillaries.
On the macro front, data released today, 3 November 2017 showed that the the seasonally adjusted Nikkei India Services Purchasing Managers' Business Activity Index rose to 51.7 in October from 50.7 in September. The Indian service sector's recovery following the implementation of the goods and services tax (GST) gathered pace as the sector observed a faster rise in activity, underpinned by greater inflows of new business. Increased capacity pressures led to firms raising staffing levels for the second month in succession.
Overseas, most Asian stocks were trading lower. Markets in Japan were closed for Culture Day. Activity in China's service sector expanded at a faster pace in October, a private gauge showed Friday, in contrast with official data showing a slower pace of growth. The Caixin China services purchasing managers' index rose to 51.2 in October from 50.6 in September, Caixin Media Co. and research firm Markit said. China's official nonmanufacturing PMI, which includes the construction sector, fell to 54.3 in October from 55.4 in September, the National Bureau of Statistics said on Tuesday.
In US, the Dow Jones Industrial Average closed at a record on Thursday, but the other main benchmarks saw muted moves, as investors parsed through tax reform details.
House Republicans released details of a highly-anticipated tax-reform plan although market moves were subdued. The corporate tax rate would be reduced to 20% from 35% under the plan, which also aims to lower the number of income tax brackets. Hopes for tax cuts have been credited for some market gains over the past year.
Trump announced that Jerome Powell, Federal Reserve Governor, would become the chairman of the Federal Reserve when current Chair Janet Yellen steps down at the end of her term in February. The move had been mostly expected by investors.
In Europe, the Bank of England (BoE) raised its key interest rate by a quarter-percentage point to 0.5%, meeting widely held expectations for the first rate increase to be enacted since July 2007. There remain considerable risks to the outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal, BoE said in a statement, referring to Britain's plan to exit the European Union, or Brexit.
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