Nov 07

Daily Market Commentary : 4th Nov. 2016

The Indian stock market declined for the third consecutive session after a weak opening in European equities increased anxiety among investors ahead of next week’s U.S. presidential elections. Both the indices ended the truncated week down 2.5%. It is their biggest weekly decline since October 2. Also, sharp decline in Midcap and Smallcap pack completely unsettled the participants and pushed them on the back foot.

Nifty closed with a loss of 51 points at 8,434, while BSE Sensex ended with a loss of 156 points at 27,274.

Asian markets closed in red as investors remained cautious ahead of the U.S. presidential election next week as well as the release of the U.S. jobs data for October later in the day.

China’s Shanghai Composite and Hong Kong’s Hang Seng closed marginally lower, while Japan’s Nikkei closed lower by 1%.

In Europe, the FTSE 100 was trading down by 1%. DAX and the CAC 40 were trading flat around 0.80% each.

Titan Company Ltd slumped 2.2% on the BSE. The company has posted a profit after taxes of Rs 180.7 crore for the quarter ended September 30, 2016 as compared to Rs 146.4 crore for the quarter ended September 30, 2015.

Shares of the FMCG stocks rallied 1.4% after the GST council decided on a four tier tax rate structure. The tax rate slabs have been fixed at 5%, 12%, 18% and 28%, Finance Minister Arun Jaitley said in a press conference in New Delhi. ITC zoomed 3.6%, Colgate gained 3.4% while Dabur advanced 1.8%.

Larsen and Toubro slipped 1.7%. Suuti will pare its holding in India’s largest engineering company Larsen and Toubro Ltd through a block deal, as per media reports.

Pharmaceuticals stocks were under pressure as reports suggested that United States may bring charges of price collusion against a group of drug makers before the end of this year. The BSE Healthcare slipped 4% or 657 points at 15,150 as against the previous close of 15,807. The BSE Healthcare opened at 15,686 and hit a high of 15,406 and a low of 15,036. Sun Pharma fell 7%, Dr Reddy’s dropped 5.2% and Aurobindo Pharma tanked 3.6%.

Mphasis slipped 1.3%. The IT company registered a 3% rise in its consolidated net profit at Rs 211 crore for the quarter ended September 30, 2016 against Rs 204 crore in the same quarter last year.

TD Power Systems fell 4.6%. TD Power posted a net profit of Rs 1.3 crore for the quarter ended September 30, 2016 as against a net profit of Rs 1.1 crore in the same quarter a year ago.

Tube Investment dragged 2.3% to Rs 638. The company reported 113.3% rise in net profit at Rs 54 crore for the quarter ended September 30, 2016 as against Rs 25 crore in the corresponding quarter a year ago.

The rupee was trading marginally higher by one paise at 66.73 per US dollar.

Out of 1,478 stocks traded on the NSE, 1,292 declined and 159 advanced today.

Top 5 Nifty Gainers: Lupin Ltd. (6.59%), BHEL (3.48%), ITC Ltd. (2.87%), SBI (2.74%) and Dr. Reddys Lab (2.35%).

Top 5 Nifty Losers: Hind. Unilever (-0.78%), TCS (-0.61%), HDFC (-0.59%), L&T (-0.24%) and Wipro (-0.21%)

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