Volatility struck bourses at onset of the day's trading session as the key benchmark indices reversed initial gains to sink in the red on negative Asian stocks. At 9:23 IST, the barometer index, the S&P BSE Sensex, was down 40.65 points or 0.15% at 26,999.11. The 50-unit CNX Nifty was down 18.95 points or 0.23% at 8,152.25. The losses for the Nifty were higher in percentage terms than those for the Sensex. The Sensex fell below the psychological 27,000 at onset of the day's trading session.
The market was volatile as traders roll over positions in the futures & options (F&O) segment from the near month October 2015 series to November 2015 series. The near month October 2015 derivatives contracts expire today, 29 October 2015.
The market breadth indicating the overall health of the market was strong. On BSE, 763 shares rose and 377 shares fell. A total of 55 shares were unchanged. The BSE Mid-Cap index was off 0.02%. The fall in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was up 0.26%, outperforming the Sensex.
Asian stocks were trading lower after the US Federal Reserve bolstered prospects for a December interest-rate increase. Meanwhile, Japanese factory output unexpectedly rose in September from a month earlier, data released today, 29 October 2015 showed. US stocks rallied yesterday, 28 October 2015 after the US Federal Reserve dropped previous warnings about global risks but signaled that it will consider a rate increase at its next meeting in December. The US Federal Reserve kept interest rates unchanged after the conclusion of its two-day monetary policy meeting yesterday, 28 October 2015. The central bank downplayed recent global financial market turmoil and said the US labour market was still healing despite a slower pace of job growth.
Dr Reddy's Laboratories rose 1.22% ahead of its Q2 result today, 29 October 2015.
NTPC rose 0.36% ahead of its Q2 result today, 29 October 2015.
Sun Pharmaceutical Industries (Sun Pharma) fell 0.89%. Sun Pharma 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). Sun Pharma said that, following receipt by the depository of the requisite documents in respect of the shares of InSite common stock that were tendered in accordance with the guaranteed delivery procedures, Thea intends to exercise its option under the merger agreement (the top-up option) to purchase directly from InSite an additional number of shares sufficient to give it ownership of one share more than 90% of InSite's outstanding shares of common stock when combined with the shares of InSite common stock purchased in the tender offer, will represent at least 90% of the outstanding shares of InSite common stock. After the merger, InSite would be an indirect wholly owned subsidiary of Sun Pharma and InSite will no longer have reporting obligations under the Securities Exchange Act of 1934, as amended, Sun Pharma said in a statement.
Ambuja Cements declined 2%. Ambuja Cements' net profit fell 35.6% to Rs 154 crore on 4.3% decline in net sales to Rs 2095 crore in Q3 September 2015 over Q3 September 2014. The result was announced after market hours yesterday, 28 October 2015.
The company's operating EBITDA (earnings before interest, taxation, depreciation and amortization) fell 21.1% to Rs 310 crore in Q3 September 2015 over Q3 September 2014.
Ambuja Cements attributed the decline in bottom line during the quarter to lower operating EBITDA and due to additional depreciation charge of Rs 28 crore on implementation of Schedule II of the Companies Act, 2013.
A provision of Rs 40 crore has been recognised in Q3 September 2015 towards contribution to District Mineral Foundation and National Mineral Exploration Trust as per The Mines and Mineral (Development and Regulation) Amendment Act, 2015. This includes Rs 27 crore up to previous quarters.
With regard to the update on scheme of amalgamation of Holcim India with the company, by which Ambuja Cements will acquire 50.01% shareholding in ACC, Ambuja Cements said that the scheme was recommended by the Foreign Investment Promotion Board (FIPB) and is awaiting approval of the Cabinet Committee on Economic Affairs (CCEA).
On future business outlook, Ambuja Cements said that the long term outlook for cement demand remains positive considering the Government's focus on housing, concrete roads, smart cities and infrastructure development. Ambuja Cements said it will continue to focus on improving operational efficiencies.
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