Stock Market

Sensex, Nifty marginally higher but Midcap, Smallcap outperform


Chillicious Bureau

Equity benchmarks closed marginally higher amid consolidation on Friday, with the Nifty retaining 8600 level on the first day of November series ahead of Muhurat trading session on Sunday. Short covering in Tata Group stocks after losses in previous three sessions and key earnings supported. The broader markets outperformed throughout the session.

The 30-share BSE Sensex gained 25.61 points at 27941.51 and the 50-share NSE Nifty rose 22.75 points to 8638 while the BSE Midcap and Smallcap indices rallied 1 percent each on positive breadth. About 1562 shares advanced against 1091 declining shares on the BSE.

Experts say in the near term, the market is expected to be rangebound amid quarterly earnings and global cues. Lots of companies are yet to announce earnings like ICICI Bank, SBI, Tata Motors, Tata Steel, M&M, L&T, Sun Pharma etc.

The market is consolidating at current levels, which is good as it had a major rally from the lows in February earlier this year, Jyotivardhan Jaipuria of Veda Investment Managers says.

According to Vaibhav Agrawal of Angel Broking, the Indian markets will remain attractive with corporate earnings expected to pick up in coming months.

He feels investors can look forward to another profitable year ahead. “We strongly recommend that investors remain selective in their approach and invest in the stocks of strong consumption-driven companies. An extra care is warranted while investing in midcap stocks,” Agrawal says.
For the week, benchmark indices ended lower on account of profit booking after rising 1-2 percent in previous week. The Sensex fell 0.5 percent and the Nifty lost 0.6 percent.

The market will have a long weekend, except one hour special Diwali Muhurat trading session on Sunday. Markets will remain shut on Monday for Diwali Balipratipada holiday.

Tata Motors (up 2.6 percent) and Tata Steel (up 1.66 percent) rebounded sharply after sell-off in previous three trading sessions due to Cyrus Mistry-Tata Group issue.

Bajaj Auto rallied over 3 percent after earnings met analysts’ expectations. Profit in Q2 increased nearly 7 percent on other income boost while revenue growth was muted due to tepid volume growth.

Tech Mahindra was the biggest gainer on Nifty 50, up over 5 percent after reporting a 5 percent growth in constant currency dollar revenue on sequential basis.

Eicher Motors fell 2 percent on profit booking after September quarter profit and operational performance missed analysts’ expectations, though revenue was ahead of estimates.

Grasim Industries gained nearly a percent as earnings beat estimates. Quarterly profit on standalone basis jumped 55 percent year-on-year to Rs 592 crore and margin expanded 490 bps.

Vedanta’s consolidated profit grew by 12 percent YoY to Rs 1,252 crore and margin jumped to 27.8 percent from 24.5 percent. The stock was up over a percent.

HDFC Bank, SBI, Lupin, Coal India and Hero Motocorp gained 1-2 percent whereas ICICI Bank (down 2.3 percent), ITC (down 0.5 percent), Infosys (down 0.7 percent), Asian Paints (down 1.5 percent) and Bharti Airtel (down 1.4 percent) were under pressure.

On the global front, European stocks were mixed amid heightened expectations that the US Federal Reserve will raise rates in the near-term. France’s CAC gained 0.3 percent while Germany’s DAX fell 0.2 percent, at the time of writing this article. Asia also ended mixed with Hong Kong’s Hang Seng down 0.8 percent and Japan’s Nikkei up 0.6 percent.