Markets settle lower for the third straight session

Markets finished lower for the third straight session with Nifty closing below the 8,200 mark with Axis Bank leading the decline over asset quality concerns. Meanwhile, persistent selling by investors ahead of a policy statement from the US Federal Reserve and F&O expiry of October due tomorrow dampened the sentiments

Provisionally, the Sensex lost 210 points to close at 27,043 while the Nifty slipped 56 points to end at 8,177. 

Benchmark indices continue to reel under pressure ahead of the US Fed FOMC meet outcome thus expecting some signals on interest rate hike.

Also, the derivatives expiry tomorrow is keeping the market participants on the edge.  The pressure across the bourses is exerted by banking and pharma shares.

At 2:55 pm, the 30-share Sensex was down 300 points at 26,953 while the Nifty slipped 89 points at 8,144.

The broader markets are outperforming their larger peers with BSE MidCap down 0.7% and SmallCap index marginally down. Market breadth was negative with 1,435 losers and 1,105 gainers on the BSE.

The Indian rupee was trading lower at Rs 65.04 against the US dollar on the back of month-end dollar demand from importers.

SECTORS & STOCKS

Sectorally, BSE Bankex index is trading down by 2.3% followed by BSE Realty index, down by 1%. On the upside, BSE Consumer Durables index is up by 1.3%.

Axis Bank continues to bleed on the Sensex. The bank sold loans of Rs.1,850 crore to asset reconstruction companies (ARCs). That number is a bit on the higher side and indicates the underlying stress for banks in general. The stock has plunged over 7%

Other banking and financial shares have also lost on the Sensex with SBI, ICICI Bank, and HDFC down between 1-4% each.

Lupin has extended losses for second straight day. The company reported 35% year on year (YoY) decline in its consolidated net profit at Rs 409 crore for the quarter ended September 30, 2015 (Q2FY16), due to single digit growth in net sales and lower other income. The drug maker had profit of Rs 630 crore in the same quarter last year. The stock has slipped nearly 3%.

Vedanta announced its results yesterday. The company’s  net debt fell Rs 5,335 crore to Rs 27,105 crore in the quarter under review. The first quarter had showed a net debt of Rs 32,439 crore. The stock has gained 0.5%

Tata Motors reported 21% increase in its global sales, including that of Jaguar Land Rover (JLR) vehicles, at 97,102 units in September. The stock has advanced 0.5%

Bharti Airtel closed another deal—its eighth such deal this year—for the sale of telecom towers in Africa in an effort to monetize its assets and reduce its debt in the continent. The stock has jumped nearly 2%.

Maruti Suzuki has reported a 42% jump in net profit for the July-September period on the back of increased volumes, lower material cost, lower discounts and favourable foreign exchange. Net profit for the quarter stood at Rs 1,225.6 crore, against Rs 862.5 crore a year ago. The stock has gained 0.4%

Oil and Natural Gas Corporation (ONGC) is expected to increase its upstream capital expenditure by 10% next year and intensify its exploration activities, taking advantage of the current depressed global energy market. The stock has gained 0.5%

Among other shares, Sun TV today reported 41.37% jump in net profit at Rs 218.38 crore for the quarter ended September 30, 2015, on the back higher advertisement revenue. The company had posted a net profit of Rs 154.47 crore in the same period of last fiscal. The stock has slipped over 2%