Sensex, Nifty Extend Losing Streak To Day 3 As Investors Await U.S. Jobs Data

Closing Bell

Indian shares declined for a third day as investors refrained from taking any big bets ahead of the U.S. jobs data due on Friday, which is expected to strengthen the case for a U.S. Fed interest rate hike.

The S&P BSE Sensex dropped 0.1 percent to 28,055 while the NSE Nifty lost 0.1 percent to close below the 8,700-mark first time since September 30. The market breadth was skewed in favour of the sellers at 835 declines, 783 advances and 257 stocks remaining unchanged.

However, despite the three-day fall, the indices managed to close nearly a percent higher.

Reliance Defence Inks Pact with U.S. Based Allrig; Shares Jump

Shares of the Anil Ambani-led firm gained as much as 5.2 percent to Rs 63 after it entered into an agreement with U.S.-based Allrig to cater to the maintenance, repair and overhaul (MRO) market of oil and gas in South-East Asia region, including India.

As per the memorandum of understanding, the two companies will develop Reliance Defence’s shipyard at Pipavav in Gujarat as a one-stop shop solution for all the service needs of upstream companies.

The association, according to the company press release, will especially target ONGC and other regional drilling contractor community.

South Indian Bank Fluctuates After Q2 Earnings

Shares of the private lender swung between gains and losses after it reported a second-quarter net jump in profit but also in its provisions.

The South-based bank reported a net profit of Rs 110.52 crore for the September quarter, compared to Rs 93.38 crore same period last year. Its provisions for the quarter stood at Rs 128 crore. This was higher than the Rs 114 crore it provisioned for the previous quarter and much higher than the Rs 67.47 crore for the September quarter of last year.

European Shares Slide

A third day of losses sent European stocks toward a second weekly decline and an almost two-week low, as investors awaited a U.S. jobs report.

Steel Strips Wheels Extends 6-Day Gains On Order Win

Shares of the auto component maker rose as much as 4.7 percent to Rs 710 to a fresh 52-week high, after it bagged order for supply of 115,000 caravan steel wheels for European Union trailer market.

The company will execute this order in a period of six months with shipments starting next month, according to its exchange filing.

Steel Strips Wheels stock is on a six-day winning streak. It is up over 57 percent year-to-date.

Elgi Rubber Jumps 20% While Tyre Makers Decline

Shares of tyre rubber recycler jumped as much as 20 percent to Rs 45, its biggest single-day gain since January 5. The stock, which has risen for five days in a row, is trading at a fresh 52-week high on a day when most other tyre shares have declined.

Tyre Stocks Under Pressure

• J.K. Tyre (-3% to Rs 151)
• TVS Srichakra (-2% to Rs 3,913)
• Kesoram Industries (-1.5% to Rs 185)
• Ceat (-0.9% to Rs 1,384)
• Modi Rubber (-4.5% to Rs 41)
• Apollo Tyres (-1.5% to Rs 224)
• MRF (-0.9% to Rs 53,554)

Endurance Technologies IPO Gets Fully Subscribed

The Rs 1,161 crore initial public offering (IPO) of Endurance Technologies was subscribed 1.21 times by 11:40 am.

The quota limit for non-institutional investors (NIIs) saw bids for 4.79 lakh shares, while the quota for qualified institutional investors (QIBs) was subscribed 1.70 times. The portion reserved for retail was subscribed around 1.37 times.

Source: Adfactors

India Sept Passenger Vehicle Sales Rise 20%

Passenger vehicle sales, which include SUVs and vans, jumped 20 percent year-on-year to 278,428 units for the month September, according to data released by the Society of Indian Automobile Manufacturers. The industry had managed to sell around 232,170 units same period last year.

• Local car sales 195,259 units versus 169,590
• Two-wheeler sales 1.87 million units versus 1.54 million
• Truck, bus sales 61,621 units versus 62,845.

Sugato Sen, deputy director general at SIAM said he expects passenger vehicle sales to continue to grow in double-digits for FY17. However, he said sales growth is likely to moderate in the fourth quarter.

In terms of medium and heavy commercial vehicle sales, Sen said he expects sales to remain flat in FY17, according to Bloomberg News.

Opening Bell

Indian shares fluctuated between gains and losses as investors chose to hold back on big bets ahead of the U.S. jobs data, which is expected to bolster the case for a U.S. Fed interest rate hike.

The S&P BSE Sensex was little changed at 28,109 and likewise for the NSE Nifty at 8704. The market breadth was skewed in favour of the buyers with 952 advances, 420 declines and 447 stocks remaining unchanged.

Market Movers: Telecom Stocks, JP Associates, Grasim, Tata Steel And More

Nifty Support Seen at 8,690: IIFL

Indian shares dropped for a second day on Thursday, as banks, autos and drugmakers sold off while oil and gas stocks bucked the market trend. The S&P BSE Sensex swung 300 points during the trading session to close 0.4 percent lower. Likewise for the NSE Nifty, however, it managed to hold on the 8,700-mark.

Data/Events to Watch

• 11:00 am: India car sales data for September (prior 177,829 units)
• RBI to release weekly FX, bank credit data

Stocks to Watch

• Tata Steel: India sales grew 12.5 percent to 26.2 lakh tonnes in the second quarter of FY17.
• Jaiprakash Power: Accepts recommendations of recast panel; in talks for more steps for SDR

• Kotak Mahindra Bank: Cuts base rate by 10 basis points to 9.4 percent per annum.
• Lupin: U.S. unit pact with Monosol Rx for multiple pediatric-focused products
• SBI: May sell up to 5 percent stake in SBI Life Insurance. (Mint)

For a complete list of stocks to watch, click HERE

IPO Watch

• Endurance Technologies: IPO subscribed 92 percent on day 2; offer scheduled to close today
• National Stock Exchange: Secures board clearance to launch IPO via offer for sale

Talking Points

• RBI releases operating guidelines for small finance banks

• Tepid spectrum auction gets Rs 65,789 crore bids; 60 percent airwaves unsold (More details HERE)
• NSE approves free share, stock split, IPO proposals
• BP gets government nod to sell jet fuel in India: Official

• Vedanta accelerating Gamsberg zinc mine on higher prices: Naidoo
• Global funds buy Rs 354 crore of local stocks; domestic funds sell Rs 124 crore yesterday: Provisional data

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, was unchanged at 8,736.

Asian stocks fell this morning, while the yen strengthened and gold gained after a sudden plunge in the pound spooked investors ahead of American jobs data that’s seen bolstering the case for the Federal Reserve to raise interest rates this year.

The pound tumbled as much as 6.1 percent versus the greenback, its biggest intraday slide since Brexit, before recovering most of the loss amid speculation automated trades may have been a factor. Oil held near a four-month high.

U.S. stocks closed little changed on Thursday as investors refrained from making big bets ahead of Friday’s much-anticipated September jobs report.

Also Read: Gold Set for Biggest Weekly Loss This Year Before U.S. Payrolls

Economists surveyed by Bloomberg forecast data will show the economy added 172,000 jobs in September, up from 151,000 a month earlier.

This after the U.S. labour market displayed further signs of strengthening as a report showed filings for unemployment benefits fell last week almost to the lowest level since 1973. Odds of higher borrowing costs in December are almost 64 percent, while traders are pricing in a nearly 24 percent chance of a Fed hike in November, up from 17 percent last week.