Sensex, Nifty Drop Most In 3-Weeks On U.S. Election Concerns; M&M Jumps 3.5%, ONGC Falls 4.1%

Closing Bell

Indian shares dropped the most in three-weeks tracking a sell-off in global equities amid mounting anxiety ahead of next week’s American presidential election.

The S&P BSE Sensex lost 1.2 percent to 27,527 while the NSE Nifty declined 1.2 percent to 8,518. This is the first time since July 22 of this year that the 50-share index has closed below the 8,550 level. All sectoral indices on the BSE and NSE closed lower.

The market breadth was abysmal with 1,320 declining, 324 advances and 243 stocks remaining unchanged on the NSE.

Closing Bell

Indian shares dropped the most in three-weeks tracking a sell-off in global equities amid mounting anxiety ahead of next week’s American presidential election.

The S&P BSE Sensex lost 1.2 percent to 27,527 while the NSE Nifty declined 1.2 percent to 8,518. This is the first time since July 22 of this year that the 50-share index has closed below the 8,550 level. All sectoral indices on the BSE and NSE closed lower.

The market breadth was abysmal with 1,320 declining, 324 advances and 243 stocks remaining unchanged on the NSE.

Zensar Tech Buys Foolproof for Undisclosed Amount

Shares of the software services provider jumped 4.8 percent after its U.K. unit bought London-based Foolproof Ltd. along with its two wholly owned subsidiaries and one wholly owned subsidiary in Singapore.

The deal will be financed through internal accruals, the company said in its exchange filing.

S&P Global Ratings Affirms Investment Grade Ratings on India

The global ratings agency affirmed its BBB- /A-3 ratings on India, citing the ongoing policymaking continues to strengthen growth prospects and fiscal performance.

The agency said stable outlook balances India’s sound external position and inclusive policymaking against low per capita income and weak public finances.

S&P’s Observations

• India's external position remains a credit strength.
• Expect RBI to achieve 5 percent inflation target by March 2017.
• Government owned banks will need $45 billion infusion by 2019.
• Low GDP per capita, debt load and overall weak public finances form part of rating constraints.
• S&P sees GDP growth of 7.9 percent in 2016, 8 percent average over 2016-2018.

#BQPollOfTheDay | Will the Nifty hold 8,550 today?

Results on #MarketWrap FB Live at 3:45 pm https://t.co/0QYMCucHcV

— BloombergQuint (@BloombergQuint) November 2, 2016

Rupee Bond Bulls See Patel Cash Sustaining Fed-Defying Rise

The promise of central bank cash helped Indian sovereign bonds eke out gains last month during the worst rout for global debt markets in almost six years. Traders see that pattern repeated in November.

Indian bonds returned 0.8 percent in an 11th consecutive month of gains in October, even as global debt lost 3.7 percent amid signs the U.S. Federal Reserve is preparing to raise interest rates, indexes compiled by Bloomberg show.

Traders expect Indian bonds to gain in November, despite the rout in global debt markets

Read|https://t.co/c8WNriMASy pic.twitter.com/BH46XXJtzC

— BloombergQuint (@BloombergQuint) November 2, 2016

M&M Jumps On Oct Sales Boost; Bajaj Auto Trims Losses

Mahindra & Mahindra Ltd. erased early losses after the automaker’s sales grew 1 percent, which included a 28 percent jump in exports for the month of October.

Sales rose to 52,008 vehicles compared to 51,383 vehicles in October 2015, the company said in a press release. Domestic sales remained flat at 48,729 vehicles, while exports increased 28 percent to 3,279 vehicles.

Meanwhile, shares of Bajaj Auto trimmed losses after it managed to snap a four-month decline in sales. The two-wheeler maker’s total sales grew 1 percent to 3,56,168 vehicles from 3,52,822 vehicles in October 2015, the company said in an exchange filing.

However, exports for the company continued to decline. (More details HERE)

Also Read: Escorts’ Tractor Sales Jump 52% In October

Opening Bell

Indian shares dropped the most in three-weeks tracking a rout in global equities amid mounting anxiety ahead of next week’s American presidential election.

The S&P BSE Sensex lost 1.2 percent to 27,535 while the NSE Nifty declined 1.2 percent to 8,518. This is the first time since July 22 of this year that the 50-share index has traded below the 8,550 level. The market breadth was abysmal with 1,311 declining, 195 advances and 361 stocks remaining unchanged on the NSE.

NTPC (+0.7%) and Dr. Reddy’s Labs (0.1%) are the only two stocks among the 51 stocks on the Nifty that are trading with any semblance of gains.

In terms of the losers, ONGC (-2.2%), SBI (-2.1%), Adani Ports (-2%) and Bank of Baroda (-1.8%) top the list.

Earnings to Watch

• Advani Hotels & Resorts (India)
• Harita Seating Systems
• HT Media
• IL&FS Engineering and Construction Company
• IL&FS Investment Managers
• The Oudh Sugar Mills
• Premier Explosives
• Sonata Software
• TVS Electronics
• Upper Ganges Sugar & Industries
• Sundram Fasteners
• Taj GVK Hotels & Resorts

Stocks to Watch

• Central Bank: To raise Rs 157 crore via preferential share issue to government; to sell shares at Rs 91.45 each
• MOIL: Revises price of various grades of manganese ore with effect from November 01.
• Coal India: October sales 43.04 million tonne, output 43.51 million tonne
• Lupin: Gets FDA nod for generic Ortho-Cyclen tablets
• Majesco: Q2 net Rs 5.21 crore versus loss Rs 58 lakh
• Tata Motors: Jaguar Land Rover October U.S. sales up 7 percent
• UCO Bank: Muscat, Woori Bank and UCO Bank to open rep. offices in Tehran
• Dabur: South Africa unit to acquire some equipment of Carbotec Lab
• NTPC, Coal India Limited and Indian Oil Corporation: Enter into joint venture in to take up revival of Sindri and Gorakhpur fertilizer plants of Fertilizer Corporation of India Limited and Barauni plant of Hindustan Fertilizer Corporation Limited.
• Vama Industries: Trades ex-split

Foreign investors pull out more than Rs 10,000 crores in October.https://t.co/CSrMjuRgjd

— BloombergQuint (@BloombergQuint) November 1, 2016

Talking Points

• Sebi releases stricter rules for credit rating companies

SEBI may have crossed a line by trying to regulate stock picks shares on social media, writes @jrvarma https://t.co/DLCVbWCsLV pic.twitter.com/AzIUHVKGtz

— BloombergQuint (@BloombergQuint) November 1, 2016

• BSE raises transaction charges in currency derivatives
• India wavers on emissions goal as power plants balk at price tag
• Thomson Reuters cuts 2,000 jobs worldwide in restructuring
• Jaguar armed with SUV leads growth in stalling U.S. auto market
• Uber’s India rival said in talks to raise about $600 million (Read more about it HERE)
• Tata says Mistry removal was necessary for future success
• Tata’s Docomo deal allegations ‘as false as it is Mmschevious’, says Mistry
• Tata empire split in two as Mistry stays chairman of group units

Minutes of June committee meeting show board members supported Mistry. What happened in October? asks @menakadoshihttps://t.co/bsZmxX5TVc

— BloombergQuint (@BloombergQuint) November 2, 2016

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, dropped 0.9 percent to 8,569.

A global equities selloff deepened in Asian trading this morning, amid mounting anxiety ahead of next week’s American presidential election. The yen gained with the Swiss franc and gold as investors favoured haven assets.

The sense of unease in markets was fuelled by an ABC News/Washington Post tracking poll that placed Republican presidential candidate Donald Trump one percentage point ahead of his Democratic rival, Hillary Clinton.

How will the U.S. presidential election outcome impact India? Writes @anupammanur https://t.co/QxoKtzNsHg pic.twitter.com/8SwQbaxW7O

— BloombergQuint (@BloombergQuint) November 1, 2016

U.S. stocks fell to the lowest since July on Tuesday, breaking below chart levels that have held for four months. The Federal Reserve also reviews monetary policy Wednesday, with some analysts saying a Trump victory could reduce odds of an anticipated rate hike in December.

U.S. crude fell for a fourth day after data showed American stockpiles grew.

US markets slump as poll shows Trump leading Clinton for 1st time since May. Asia opens weak. Oil below $47.

Read| https://t.co/TxZNTBiKai pic.twitter.com/4jw8DK6bi3

— BloombergQuint (@BloombergQuint) November 2, 2016