Trading turned volatile as key benchmark indices bounced back after hitting fresh intraday low in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 18.03 points or 0.05% at 33,388.79. The Nifty 50 index was down 0.65 points or 0.01% at 10,349.50. Metal and pharmaceutical shares were in demand.
The Sensex and the Nifty hit fresh intraday high in early trade. Selling pressure emerged at higher levels, which dragged the key indices to the day's low. Indices, however, bounced back after hitting the intraday low.
The Sensex rose 113.94 points, or 0.34% at the day's high of 33,484.70 in early trade. The index fell 38.96 points, or 0.12% at the day's low of 33,331.80 in morning trade, its lowest level since 31 October 2017. The Nifty rose 34.10 points, or 0.33% at the day's high of 10,384.25 in early trade. The index fell 18.20 points, or 0.18% at the day's low of 10,331.95 in morning trade, its lowest level since 31 October 2017.
Among secondary barometers, the BSE Mid-Cap index was up 0.13%. The BSE Small-Cap index was up 0.10%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive . On BSE, 1,162 shares rose and 1,010 shares fell. A total of 94 shares were unchanged.
Metal shares were in demand. Bhushan Steel (up 5.93%), Hindustan Copper (up 3.63%), Jindal Steel & Power (up 1.31%), Hindustan Zinc (up 0.74%), Hindalco Industries (up 0.73%), Tata Steel (up 0.61%), NMDC (up 0.50%), JSW Steel (up 0.47%), National Aluminium Company (up 0.44%) and Steel Authority of India (up 0.25%), edged higher. Vedanta was down 0.03%.
Pharmaceutical shares were in demand. Cipla (up 4.08%), Wockhardt (up 3.24%), IPCA Laboratories (up 3.11%), Sun Pharmaceutical Industries (up 2.63%), Divi's Laboratories (up 2.07%), Lupin (up 1.28%), Dr Reddy's Laboratories (up 1.15%), Aurobindo Pharma (up 1.05%), Glenmark Pharmaceuticals (up 1.03%), Cadila Healthcare (up 0.78%), Alkem Laboratories (up 0.65%), Strides Shasun (up 0.32%) and GlaxoSmithKline Pharmaceuticals (up 0.06%), edged higher. Piramal Enterprises was down 0.17%.
Alembic Pharmaceuticals rose 0.90% after consolidated net profit rose 1.4% to Rs 121.56 crore on 10.2% decline in net sales to Rs 789.29 crore in Q2 September 2017 over Q2 September 2016. The result was announced after trading hours yesterday, 7 November 2017.
On a consolidated basis, the company's EBITDA margin expanded to 23% from 20% a year ago. Pranav Amin, Managing Director, Alembic Pharmaceuticals, said that the US formulations business continues to face price erosion on some key products, however the India branded business is showing signs of recovery. The company recently concluded the acquisition of Orit Laboratories LLC which will strengthen its presence in the US market, Amin added.
Adani Power was up 1.18%. The company announced that its wholly-owned subsidiary Adani Power (Jharkhand) has signed a long term Power Purchase Agreement (PPA). The PPA has been signed for net capacity of 1496 MW with Bangladesh Power Development Board for 25 years. Power supply under the PPA will be made from a new 1600 MW (2 x 800 MW) Ultra-supercritical, coal based power plant to be set up by Adani Power (Jharkhand) at Godda, Jharkhand. The announcement was made after market hours yesterday, 7 November 2017.
Overseas, Asian stocks were mixed. Geopolitics remain a focus as US President Donald Trump continues his tour of Asia, wrapping up his visit to Seoul on Wednesday and then head to China. Investors were also keeping a wary eye on Saudi Arabia's sweeping anti-graft purge and an escalation of tensions with Iran.
In US, Dow industrials eked out a small gain on Tuesday to end in record territory, but the broader market was weighed down by a selloff in financials, consumer discretionary and small-cap stocks amid concerns over the timing and ultimate shape of tax legislation working its way through Congress. The Dow Jones Industrial Average ended with a gain of 0.4%. The S&P 500 index closed less than a point lower at 2,590.64. Meanwhile, the Nasdaq Composite Index declined 0.27%.
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