Index heavyweight and cigarette major ITC led intraday recovery for key benchmark indices. At 14:20 IST, the barometer index, the S&P BSE Sensex, was off 201.73 points or 0.77% at 26,063.51. The 50-unit Nifty 50 index was off 58.75 points or 0.74% at 7,895.55. The Sensex was currently trading above the psychological 26,000 level, having alternately moved above and below that level in intraday trade so far. Earlier, the Sensex slipped below the psychological 26,000 level after a weak opening triggered by BJP's drubbing in Bihar assembly elections and strong US job report for October 2015 which bolstered expectations of the US Federal Reserve hiking interest rates at its next monetary policy review in December 2015.
The market breadth indicating the overall health of the market once again turned positive from negative. The breadth has alternately swung between positive and negative zone in intraday trade so far. On BSE, 1,239 shares rose and 1,235 shares declined. A total of 109 shares were unchanged. The BSE Mid-Cap index was currently up 0.25%. The BSE Small-Cap index was currently up 0.56%. Both these indices outperformed the Sensex.
Meanwhile, a poor showing of BJP-led National Democratic Alliance (NDA) in the Bihar assembly elections has raised concerns among investor that the opposition parties may disrupt the Centre's economic reform process. The pre-poll alliance between the Janata Dal (United), Rashtriya Janata Dal and Congress scored a stunning win in the Bihar assembly elections for which counting took place yesterday, 8 November 2015, dealing a major blow to the ruling NDA government at the Centre. The NDA won just 58 seats of which the BJP won 53 seats in the Bihar assembly elections. With the opposition, emboldened by the victory in Bihar, unlikely to let Parliament function smoothly in the winter session, the fate of key legislation aimed at furthering the government's reform agenda remains uncertain. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha, the upper house, where members are elected by the strength of legislators in the states. The NDA was hoping that a good performance in some of the state assembly elections would help it consolidate its position in the Rajya Sabha, which in turn could help it push through important legislation in the upper house. At present, the Congress is the single largest party in the Rajya Sabha with 67 seats. The BJP has 48 members in the 245-member house and the NDA 60 members.
In overseas stock markets, key benchmark indices in emerging Asia were mostly in red after robust US jobs data for October 2015 bolstered expectations of the US Federal Reserve hiking interest rates at its next monetary policy review in December 2015. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The next monetary policy review from the Fed is scheduled on 15-16 December 2015. The Fed-funds futures market is now pricing in 70% probability of an increase in US benchmark interest rate in December 2015.
BPCL was up 0.16% at Rs 897.35 after the company reported a sharp surge in bottom line in Q2 September 2015. The stock was volatile. The stock hit a high of Rs 910 and a low of Rs 879.45 so far during the day. The company's net profit jumped 119.31% to Rs 1018.04 crore on 24.27% decline in total income to Rs 47160.05 crore in Q2 September 2015 over Q2 September 2014. BPCL's bottom line during the quarter was boosted by surge in non-operational income (other income). The company's other income jumped 172.36% to Rs 686.50 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours today, 9 November 2015.
Dr Reddy's Laboratories edged lower, with the stock extending previous trading session's sharp decline triggered by warning from the US drug watchdog over three of its plants. The stock was off 4.04% at Rs 3,483. The stock had slumped 14.65% to settle at Rs 3,629.55 on Friday, 6 November 2015.
Auto stocks were mixed. Eicher Motors (down 4.85%), Mahindra & Mahindra (down 0.74%), Bajaj Auto (down 0.45%) and Hero MotoCorp (down 0.53%) edged lower. TVS Motor Company (up 3.69%) and Ashok Leyland (up 1.54%) edged higher.
Tata Motors reversed initial losses triggered by the company reporting a reverse turnaround in Q2 September 2015. The stock was up 2.54% at Rs 406.30. The stock hit a high of Rs 409.85 and a low of Rs 372 so far during the day. Tata Motors reported consolidated net loss of Rs 429.76 crore for Q2 September 2015 compared with net profit of Rs 3290.86 crore in Q2 September 2014. Total income rose 1.15% to Rs 61563.45 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 6 November 2015.
As per International Financial Reporting Standards, Tata Motors British luxury car unit Jaguar Land Rover's (JLR) revenue stood at GBP 4,831 million for the quarter ended 30 September 2015 as against GBP 4,808 million for the quarter ended 30 September 2014. Operating profit (EBITDA) stood at GBP 589 million for the quarter ended 30 September 2015 as against GBP 933 million for the quarter ended 30 September 2014. An exceptional charge of GBP 245 million has been recognised for about 5,800 vehicles involved in the Tianjin Port explosion. Post the exceptional charge, loss after tax stood at GBP 92 million for the quarter ended 30 September 2015 as against profit after tax of GBP 450 million for the quarter ended 30 September 2014.
Maruti Suzuki India (MSIL) was up 1.98% at Rs 4,612.50. The stock hit a high of Rs 4,629.10 and a low of Rs 4,448 so far during the day. MSIL on Saturday, 7 November 2015, announced that it will offer the acclaimed auto gear shift (AGS) technology in its two car modes WagonR and Stingray.
FMCG stocks edged higher. Godrej Consumer Products (up 3.39%), Colgate Palmolive (India) (up 2.34%), Tata Global Beverages (up 2.23%), Bajaj Corp (up 1.99%), Dabur India (up 0.37%), Nestle India (up 0.38%), Hindustan Unilever (up 0.52%) and Marico (up 0.51%) edged higher. Procter & Gamble Hygiene and Health Care (down 3.62%) and Jyothy Laboratories (down 1.77%) edged lower.
Britannia Industries was off 1.7% at Rs 3,069.90 after consolidated net profit declined 19.16% to Rs 218.63 crore on 12.33% growth in total income to Rs 2238.81 crore in Q2 September 2015 over Q2 September 2014. The stock was volatile. The stock hit a high of Rs 3,143.90 and a low of Rs 3,039.10 so far during the day. The result was announced on Saturday, 7 November 2015.
Britannia Industries' bottom line during the quarter was affected due to base effect. There was a one-time gain of Rs 124 crore in Q2 September 2014 pertaining to profit on sale of land & building. Excluding the one-time gain, the company's net profit grew 49% in Q2 September 2015 over Q2 September 2014.
GlaxoSmithkline Consumer Healthcare rose 0.14% at Rs 5,909.70 after net profit rose 36.85% to Rs 219.37 crore on 0.64% growth in total income to Rs 1183.05 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 6 November 2015.
Meanwhile, the finance ministry announced the imposition of a Swachh Bharat Cess at the rate of 0.5% on all services presently liable to service tax. The Swachh Bharat or Clean India Cess will be applicable from 15 November 2015. The proceeds from this levy will be exclusively used for Swachh Bharat initiatives.
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