Markets end lower amid weak earnings from ITC, L&T

ITC and L&T ended over 4% lower contributing the most to the market decline

Markets ended lower for the fifth straight session with index heavyweights L&T and ITC leading the decline amid weak corporate earnings for the September 2015 quarter.

The 30-share Sensex ended down 181 points at 26,657 and the 50-share Nifty ended down 46 points at 8,066.

In the broader market, the BSE MidCap index ended down 0.1% and SmallCap index ended down 0.8%. Market breadth ended weak 1,610 losers and 999 gainers on the BSE.

"Markets remained under pressure as investors turned cautious and booked profits after weak earnings from major corporates such as ITC and L&T," said G Chokkalingam, Founder & MD, Equinomics Research & Advisory.

The rupee trimmed intra-day gains and was trading flat at 65.25 against the US dollar.

GLOBAL MARKETS

Bank of Japan decided to maintain its monetary stimulus program unchanged, keeping the current pace of asset purchases at about ¥80 trillion ($660 billion) annually. However, the central bank downgraded its projections for the country’s growth and inflation in view of slowing global economy.

Most Asian markets ended lower on Friday with the exception of Japan. The benchmark Nikkei ended up 0.8% while Straits Times, Hang Seng and Shanghai Composite ended down 0.1-0.8% each.

European shares were trading mixed with FTSE-100 trading marginally lower down 0.1% while DAX and CAC-40 were trading with marginal gains.

SECTORS & STOCKS

BSE Capital Goods index was the top loser down 2.7% along with FMCG index down 2.3% followed by others. Healthcare, Consumer Durables and Bankex were the top gainers.

FMCG major ITC's September quarter results missed street expectations posting a flat profit of Rs 2,431 crore and a revenue fall of over 1% to Rs 8,904 crore year-on-year basis. The stock ended down 4%.

L&T reported 16% year-on-year (YoY) growth in consolidated net profit at Rs 996 crore for the quarter ended September 30, 2015 (Q2). Consolidated net sales grew 10.6% at Rs 23,393 crore on YoY basis. Analysts on an average had expected profit of Rs 910 crore and net sales of Rs 23,051 crore for the quarter. The stock hit a 52-week low of Rs 1,400 to finally end 4% lower.

NTPC ended up 3.3% after posting around 40% increase in net profit to Rs 2,898.28 crore for the second quarter ended on 30 September on account of higher power generation.

ICICI Bank ended up 1.9% after the company posted earnings in line with the street expectations. Net profit rose 12% to Rs 3,030 crore for the quarter ended September 30,2 015 compared with Rs 2,709 crore in the same quarter last fiscal.

Nestle India ended up 1.5%. Net profit declined 60% from the year-ago period to Rs.124.2 crore on account of lower sales.

Dr Reddy’s Laboratories ended up 1.3% after the September quarter net profit grew 26% to Rs.722 crore, beating analysts’ estimates, helped by strong sales in North America, Europe and India.

Pharma major Cipla pared early gains to end lower. The company decided to sell its 25 per cent stake in Biomab Holding, a Hong Kong company that makes biosimilar drugs for the Chinese market, for nearly $26 million.

Bharti Airtel ended down 2.6%. The telecom major has decided to sweeten the deal for its prepaid data customers that constitute 94% of its subscriber base. After offering free voice minutes to high-value 4G consumers, Airtel is now going after the not-so-creamy layer.

Among other shares, Jet Airways and SpiceJet ended up 8.5-9.5% each. The Union government released a revised draft of the civil aviation policy on Friday proposing a viability gap funding for regional routes, liberal bilateral traffic rights, opening up foreign direct investment (FDI) in aviation, self-handling airport operations and retaining the route dispersal guidelines.

Sun TV Network gained 5% in otherwise weak market after the company announced that its board will meet next week to consider share buyback.

Thomas Cook (India) ended down 4.5% after the company's consolidated net profit for the quarter ended September 30, 2015 declined 36% to Rs 18.2 crore compared with Rs 28.7 crore for the corresponding quarter last fiscal because of higher interest costs.

Glenmark Pharmaceuticals ended up 5% after the company today announced that it has recieved tentative approval by the United States Food & Drug Administration (USFDA) for its Lacosamide tablets in dosages of 50mg, 100mg, 150mg and 200mg.