BSE Sensex ended down 45 points at 28,061 and Nifty lower at 8,698

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Markets ended lower on caution ahead of US jobs data, due for release later today, could raise the prospects of a rate hike by the US Federal Reserve.

The S&P BSE Sensex ended down 45 points at 28,061 and the Nifty50 closed 12 points lower at 8,698. In the broader markets, the BSE Midcap and Smallcap indices ended flat. Market breadth ended neutral with 1386 gainers and 1388 losers on the BSE.

“Lack of confidence due to global ambiguity has refrained investors to go long. The US payroll & unemployment data will increase the chance for a hike in FED rate by Dec-2016. In the domestic market, Investors are shifting their focus to quarter earnings which start next week and the GST Council to finalize the neutral rate. The expectation for Q2 PAT is at 5% to 7% which is better than it actually was in Q1” says Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Foreign institutional investors were net buyers in equities worth Rs 354 crore on Thursday, as per provisional stock exchange data.

IT exporters TCS, Wipro and Infosys ended down over 0.5% each ahead of September US jobs data.

Other losers include, HDFC, Asian Paints, ICICI Bank and L&T among others.

Auto stocks ended mixed after recent gains post their September sales numbers. Maruti Suzuki and Hero MotoCorp ended down 0.5% each while Bajaj Auto gained over 2%.

However, Tata Motors led the pack with 2.5% gain after the company said Jaguar Land Rover (JLR) achieved a strong 28% year on year growth in global sales during the month of September.

Tata Steel surged over 4%. The company’s hot metal production surged 17% to 3.12 million tonnes in the second quarter of 2016 compared with quarter ended September 2015. Crude steel production rose 13% to 2.82 million tonnes in the quarter ended September 2016 as against quarter ended September 2015.

Telecom shares were in action post the spectrum auction in which Airtel acquired 173.8 MHz spectrum across 1800/2100/2300-MHz bands, Idea Cellular won 2100-MHz band spectrum in Mumbai circle. Idea said it has procured 349.2 MHz of spectrum, securing additional airwaves in 1800-MHz, 2100-MHz, 2300-MHz and 2500-MHz bands. Bharti Airtel ended down 1% while Idea Cellular ended flat.

Reliance Industries settled marginally lower. The company’s telecom arm Jio said it has acquired 269.2 MHz spectrum across all 22 circles.

Kotak Mahindra Bank ended up 0.3%. The bank reduced its base rate to 9.40%, effective 7th October, 2016. Canara Bank eased 0.5% after the state-owned bank also cut its base rate by 5 basis points to 9.60%, effective from October 11, 2016.

Lupin ended up 1%. The pharma majors US arm Lupin Pharmaceutical Inc. entered in a strategic licensing agreement with MonoSol Rx. The company would develop multiple pediatric products utilising MonoSol Rx’s proprietary PharmFilm drug delivery technology.

Among others, SAIL gained over 4%. Reports suggest that the state-owned steel major plans to invest Rs 255 crore for modernisation and capacity expansion of its flagship Bolani iron ore mines in Odisha.

Shares of paper companies ended higher by up to 20% in an otherwise weak market on expectations of strong earnings growth in July-September 2016 quarter (Q2FY17). Kuantum Papers, Seshasayee Paper and Boards, Malu Paper Mills and Emami Paper Mills ended locked in upper limit on the BSE.

NR Agarwal Industries surged 9% after the company said that it has exited from corporate debt restructuring (CDR).

Fiem Industries rose 2% after the company said it has signed technology License and assistance agreement with Japanese companies Aisan Industry Co and Toyota Tsusho Corporation for manufacturing Canister.

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