12:50 pm Market Update:
The 50-share NSE Nifty breached 8000-mark for the first time since October 1, dow 65.60 points to 8005.20.
The 30-share BSE Sensex shed 236.88 points to 26419.95, dragged by index heavyweights HDFC, HDFC Bank, Infosys and L&T.
12:40 pm Earnings: State-run private sector lender Oriental Bank of Commerce’s (OBC) profit increased 3 percent year-on-year to Rs 301.3 crore in July-September quarter. It was driven by lower provisions, higher other income and operating profit despite tax cost.
Even its sequential performance improved. In Q1FY16, the bank had reported a 29.1 percent fall in profit with 7 percent growth in net interest income.
Net interest income, the difference between interest earned and interest expended, grew by 11 percent to Rs 1,383.05 crore compared to year-ago period with loan book growth of 6 percent.
Asset quality of the bank improved sequentially though deteriorated on yearly basis. Gross non-performing assets (as a percentage of gross advances) declined 15 basis points quarter-on-quarter (up 96 bps year-on-year) to 5.7 percent and net NPA fell 21 bps sequentially (up 26 bps on yearly basis) to 3.55 percent in quarter ended September 2015.
12:20 pm PMI at 22-month low: Growth in India’s manufacturing sector cooled to its slowest in 22 months in October as domestic demand softenend, a private survey showed today, adding pressure on Prime Minister Narendra Modi to usher in long-promised reforms.
The Nikkei Manufacturing Purchasing Managers’ Index, compiled by Markit, fell to 50.7 in October from September’s 51.2. The 50-mark divides expansion from contraction.
A sub-index covering new orders dropped to a two-year low of 51.2 from 52.5 as the uncertain economic climate deterred clients from committing to new projects, Markit said. New export orders grew slightly faster than September but at a modest pace, and levels were still well below those in late summer.
12:00 pm Market Check
The market slipped further in noon trade with the Sensex falling 200.75 points to 26456.08 and the Nifty down 51.30 points to 8014.50. FMCG, metals, infra, select technology and banking & financial stocks dragged market down.
The broader markets also declined with the BSE Midcap and Smallcap indices down 0.3-0.5 percent.
Auto stocks bucked the trend post October sales data. Mahindra & Mahindra rallied 3 percent as its October sales increased by 20 percent year-on-year to 51,383 units, majorly led by passenger vehicle (up 19 percent to 24,060 units) and commercial vehicle sales (up 31 percent at 18,756 units).
Tata Motors gained over a percent on reporting a 1 percent increase in sales at 43,486 units. Its passenger vehicle sales rose 11 percent and medium & heavy commercial vehicle sales climbed 20 percent despite a 4 percent decline in commercial vehicle sales.
Maruti Suzuki was up 0.8 percent as sales jumped 29 percent whereas Bajaj Auto lost 4.4 percent after a 9 percent decline in sales at 3.5 lakh units year-on-year.