Nifty has to close above 8,075 for the index to head higher
We had mentioned in Tuesday’s closing report that Nifty, Sensex may be headed higher and that if Nifty holds Monday’s lows, it may head for 8,150. The major indices in the Indian stock markets did not improve from Tuesday’s close and the day was marked by lacklustre trading. Finally the indices closed lower than Tuesday’s close. The trends of the major indices in Wednesday’s trading are given in the table below:
Caution on quarterly earnings and the likelihood of a US Federal Reserve interest rates hike in December 2015 kept the indices range-bound and to finally close in the red. Uncertainty over Bihar election results was also a factor affecting investor sentiment adversely. Positive Chinese macro-economic data and enthusiastic response to Japan Post's initial public offering (IPO) buoyed the Asian markets elsewhere.
Reliance Infrastructure on Wednesday reported an almost 5% increase in its consolidated net profit for the second quarter (Q2) of the current fiscal. The company's consolidated net profit for Q2 stood at Rs451 crore from Rs431 crore in the corresponding quarter of the last fiscal. According to the company, the Q2 net profit of Rs451 crore was achieved despite Mumbai Metro and the cement business incurring a loss of Rs49 crore and Rs50 crore, respectively. However, the net profit for the period under review would have been higher by 16% to Rs501 crore, prior to cement business losses. The company's total income for the quarter ended 30 September 2015 grew by 8% to Rs4,841 crore from Rs4,487 crore in the corresponding quarter of 2014-15. The company's consolidated net worth stood at Rs27,840 crore at the end of the quarter under review.
Services sector expansion propelled the overall economic activity in India during October, a key macro data showed on Wednesday. The Nikkei India composite PMI (purchasing managers’ index) which is a key macro data that indicates monthly trends in overall economic activity showed a rise of 52.6 in October from 51.5 in September. An index reading of above 50 indicates an overall increase in the economic activity, below 50 an overall decrease. The composite PMI weighs the average of the manufacturing output index and the services business activity index. It is based on original survey data collected from around 700 companies spread across sectors in India. According to the composite PMI report published by the leading global diversified provider of financial information services -- "Markit", the October expansion trend was the joint-fastest since March. The survey said the latest improvement was driven by services, as goods producers saw growth of production wane.
Nestle India on Wednesday said Maggi noodles has cleared the tests ordered by the Bombay High Court at three accredited laboratories and that the effort will now be on to re-launch the popular snack within this month. "We have received the results from all the three NABL (National Accreditation Board for Testing Calibration Laboratories) mandated by the Bombay High Court to test newly-manufactured Maggi noodles samples," the company said in a regulatory filing with stock exchanges.
The US jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates or not in its December meeting.
The investors were seen to avoid taking long position ahead of the Bihar election verdict which is due on November 8. The foreign institutional investors (FIIs) were net buyers in the day's trade, whereas the domestic institutional investors (DIIs) were net sellers. According to data with stock exchanges, the FIIs bought stocks worth Rs.33.16 crore, while the DIIs off-loaded stocks worth Rs74.9 crore.
Sector-wise, S&P BSE healthcare index plunged by 142.46 points, banking index receded by 95.26 points and IT index plummeted by 65.07 points.
On the other hand, the S&P BSE automobile index surged by 306.86 points, metal index gained by 29.24 points and fast moving consumer goods (FMCG) index rose by 22.57 points.
The top gainers and top losers of the indices in the Indian stock markets are given in the table below:
The closing values of the major Asian indices are given in the table below: