Key benchmark indices ended the volatile session lower due to weakness in index heavyweights like ITC and Reliance Industries. The barometer index, the S&P BSE Sensex, fell 27.05 points or 0.08% to 33,573.22, as per the provisional closing data. The Nifty 50 index fell 16.70 points or 0.16% to 10,423.80, as per the provisional closing data. Profit booking set in after indices hit record high levels in intraday trade. Mostly lower global stocks kept sentiment subdued.
Indices opened with small gains and firmed up till mid-morning trade. The Nifty hit record high level in morning trade and the Sensex hit record high level in mid-morning trade. Indices, however, failed to sustain at higher levels as profit booking dragged indices in the negative terrain in early afternoon trade. Indices came off day's low in afternoon trade as buying emerged at lower levels.
The Sensex rose 57.30 points, or 0.17% at the day's high of 33,657.57 in morning trade, its record high level. The index fell 73.27 points, or 0.22% at the day's low of 33,527 in early afternoon trade. The Nifty rose 12.50 points, or 0.12% at the day's high of 10,453 in morning trade, its record high level. The index fell 27.95 points, or 0.27% at the day's low of 10,412.55 in early afternoon trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.47%. The BSE Small-Cap index provisionally rose 0.41%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,421 shares fell and 1,335 shares rose. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 5045.44 crore, lower than turnover of Rs 5317.84 crore registered during the previous trading session.
Most pharmaceutical shares rose. Glenmark Pharmaceuticals (up 3.93%), Aurobindo Pharma (up 3.68%), Wockhardt (up 3.36%), Lupin (up 3.14%), Sun Pharmaceutical Industries (up 2.74%), Dr Reddy's Laboratories (up 1.44%), Cipla (up 1.28%), Alkem Laboratories (up 0.78%) and GlaxoSmithKline Pharmaceuticals (up 0.51%), edged higher. IPCA Laboratories (down 0.29%), Piramal Enterprises (down 0.64%) and Strides Shasun (down 0.74%), edged lower.
Cadila Healthcare rose 1.58% after the company announced that its subsidiary got US drug regulator's final approval for Dextroamphetamine Sulfate and Amphetamine Sulfate Tablets. The announcement was made during market hours today, 2 November 2017.
Cadila Healthcare said that Nesher Pharmaceuticals, a subsidiary of Zydus Pharmaceuticals USA has received the final approval from the United States Food & Drug Administration (USFDA) to market Dextroamphetamine Sulfate and Amphetamine Sulfate Tablets in strengths of 5 mg, 7.5 mg, 10 mg, 12.5 mg, 15 mg, 20 mg and 30 mg. The drug is used in the treatment of Attention Deficit Hyperactive Disorder (ADHD) and Narcolepsy and will be produced at the Nesher Pharmaceuticals' manufacturing facility located at St. Louis, MO, USA. The annual sales of drug is estimated at $416.5 million in US as per IMS Health data.
Divi's Laboratories jumped 16.46% after the company said that the United States Food and Drug Administration (USFDA) that it will be lifting the import alert 66-40 and moving to close out the warning letter issued to the company's unit-II at Visakhapatnam. The announcement was made before market hours today, 2 November 2017.
Motorcycle major Hero MotoCorp fell 2.73% to Rs 3,712.25. The company said its total sales fell 4.83% to Rs 6.31 lakh units in October 2017 over October 2016. The announcement was made during trading hours today, 2 November 2017.
Hero MotoCorp's net profit rose 0.6% to Rs 1010 crore on 7.3% growth in net revenue from operations to Rs 8362 crore in Q2 September 2017 over Q2 September 2016. Net revenue from operations on like-for-like basis (adjusted for GST accounting change on Haridwar sales) grew by 11.5% year on year (YoY) in Q2 September 2017. The result was announced after market hours yesterday, 1 November 2017.
EBITDA margin declined slightly to 17.4% in Q2 September 2017, compared with 17.6% in Q2 September 2016. The effective tax rate for the quarter (Q2 September 2017) is higher on account of phasing out of investment allowance and reduction in allowable deduction of R&D expenditure leading to lower PAT growth versus EBITDA growth.
Pawan Munjal, CMD and CEO of Hero MotoCorp said, the first half of FY 2018 has been exciting for the company. The industry rebounded in the festive quarter largely aided by the positive sentiment in the urban and rural markets. With a series of new product launches and significant brand building initiatives in the global markets, the company is confident of carrying forward the momentum in the second half of FY 2018 as well, Munjal said.
Overseas, most European declined as investors remained cautious ahead of fresh earnings reports and the Bank of England's (BoE) monthly policy decision due later in the day. Later in the global day today, 2 November 2017, the BoE is widely expected to raise interest rates for the first time in almost a decade.
Asian stocks fell as investors locked in profit from recent gains. Investors were waiting for the announcement on the next US Federal Reserve chief, shrugging off results of a Fed meeting that met their expectations. President Donald Trump is expected to name the successor to Fed Chair Janet Yellen later in the global day.
US stocks mostly closed higher yesterday, 1 November 2017, with the Dow Jones Industrials Average and the S&P 500 index ending near record levels after the US Federal Reserve kept interest rates unchanged on that day, but referred to the US economy in positive terms. The Dow Jones Industrial Average rose 0.25% and the S&P 500 climbed 0.16% Both ended mere points from record levels. The Nasdaq Composite Index, however, bucked the trend to slip 0.17%.
The US central bank, in its statement following a two-day meeting, said economic activity has been picking up at a solid rate, versus the moderate rate that it had referenced in September. The rosier view of the economy also suggests that it is on track to hike interest rates in December, as has been widely expected.
Private-sector employment in the US bounced back in October as employers added 235,000 jobs, ADP reported Wednesday. The gain in October ADP was higher than the 110,000 gain in September.
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