Key benchmark indices edged lower in what was a volatile session of trade. The barometer index, the S&P BSE Sensex, fell 96.94 points or 0.35% to 27,430.28, as per the provisional closing data. The Nifty 50 index fell 29.05 points or 0.34% at 8,484.95, as per the provisional closing data. The Sensex and the Nifty, both, hit their lowest level in over 16 weeks in late trade as investors turned cautious ahead of the US presidential election next week.
The Sensex rose 73.52 points or 0.27% at the day's high of 27,600.74 in mid-morning trade. The barometer index fell 127.96 points or 0.46% at the day's low of 27,399.26 in late trade, its lowest level since 11 July 2016. The Nifty rose 23.65 points or 0.28% at the day's high of 8,537.65 in mid-morning trade. The index fell 37.85 points or 0.44% at the day's low of 8,476.15 in late trade, its lowest level since 11 July 2016.
The market breadth indicating the overall health of the market was weak. On BSE, 1,779 shares declined and 1,172 shares rose. A total of 123 shares were unchanged. The BSE Mid-Cap index was provisionally down 1.36%. The BSE Small-Cap index was provisionally down 1.05%. The decline in both the indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3110.94 crore, lower than turnover of Rs 3274.15 crore registered during the previous trading session.
Most pharma stocks fell. Glenmark Pharmaceuticals (down 3.69%), Lupin (down 1.71%), Sun Pharmaceutical Industries (down 1.6%), GlaxoSmithKline Pharmaceuticals (down 0.09%), Alkem Laboratories (down 0.16%), Cadila Healthcare (down 2.16%), Aurobindo Pharma (down 2.64%) and Wockhardt (down 1.93%) edged lower. Cipla (up 0.04%) and Dr Reddy's Laboratories (up 0.71%) rose.
Strides Shasun surged 6.9% after the company said that Mylan agreed to settle regulatory and general claims on Agila transaction. Strides Shasun and its wholly-owned subsidiary, Strides Pharma Asia, completed the sale to Mylan Laboratories and Mylan Institutional Inc. of Agila Specialties and Agila Specialties Global respectively, pursuant to sale and purchase agreements (SPAs) effective as of 27 February 2013 on 4 December 2013. Pursuant to the settlement, Mylan's regulatory concerns claims will be satisfied from the regulatory escrow, and Strides Shasun will receive approximately $30 million, representing the balance of funds it deposited in the regulatory escrow on consummation of the Agila sale pursuant to the SPAs. In addition, Strides and Mylan have now agreed on a full and final settlement of the warranty and indemnity claims. The general claims escrow continues to be valid till December 2017 and pertains to tax and certain potential third party claims.
Ambuja Cements slipped in volatile trade after declaring Q3 result during market hours today, 3 November 2016. The stock shed 0.25% to Rs 240. The stock hit high of Rs 244.90 and low of Rs 235.55 in intraday trade. Consolidated net profit rose 40.39% to Rs 216.11 crore on 114.32% growth in total income from operations to Rs 4533.59 crore in Q3 September 2016 over Q3 September 2015. The company's bottom line during the quarter was boosted by surge in non-operational income. Other income jumped 98.87% to Rs 144.86 crore in Q3 September 2016 over Q3 September 2015.
The current quarter (Q3 September 2016) results include results of ACC and are not comparable with results of corresponding previous quarter. Ambuja had recently acquired 50.05% shareholding in ACC pursuant to a scheme of amalgamation.
In its outlook, Ambuja Cements said the medium to long term outlook for cement demand remains positive considering good monsoon this year and government's focus on housing and infrastructure development. Ambuja Cements said it continues to focus on improving operational efficiencies.
On the macro front, the Nikkei India Services Purchasing Managers' Index, or PMI, rose to 54.5 in October from 52 in September. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The service sector joined its manufacturing counterpart in offering a more upbeat level of performance this month, providing reassurance in the sustainability of the upturn of India's economy, Pollyanna De Lima, economist at IHS Markit said. She added that one underlying concern is the sustained stagnant trend in workforces, with both manufacturers and service providers showing some reluctance to hire.
Meanwhile, international rating agency Standard & Poor's (S&P) yesterday, 2 November 2016 affirmed "BBB-/A-3" rating with stable outlook for India. The stable outlook balances India's sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances, S&P said. The ratings on India reflect the country's sound external profile and improved monetary credibility, the agency said. The outlook indicates that rating agency does not expect to change its rating on India this year or next, based on its current set of forecasts, it said. Improvements in policy making continue to strengthen the prospects for India's economic and fiscal performance. Wide fiscal deficits, a heavy debt burden, and low per capita income nonetheless detract from the sovereign's credit profile, it added.
In overseas stock markets, European stocks were trading mixed as investors eyed the Bank of England's policy statement due later in the trading session and as they remained cautious ahead of the US presidential election next week. Most Asian stocks dropped with uncertainty over next week's US presidential election sending investors rushing for the sidelines. China's Shanghai Composite ended 0.84% higher. Activity in China's service sector expanded at a faster pace in October, a private gauge showed today, 3 November 2016, adding to recent signs of firmness in China's economy. The Caixin China services purchasing managers' index rose to a four-month high of 52.4 in October from 52 in September, Caixin Media Co. and research firm Markit said.
US stocks fell yesterday, 2 November 2016, with the S&P 500 recording its longest losing streak in five years after the Federal Reserve, as expected, kept interest rates unchanged. The Federal Reserve yesterday, 2 November 2016 signaled that the time for another interest-rate hike is approaching and it doesn't need much more evidence before moving. The Fed policy committee committee voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%. The Fed said inflation has been moving up toward its 2% target since the beginning of the year. Meanwhile, polls showed a tightening presidential race. A latest poll reportedly showed Republican nominee Donald Trump taking a one-point lead over rival Hillary Clinton. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.
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