Nifty ends below 8,200; US Fed meet, F&O expiry in focus

Axis Bank cracked over 7% on asset quality concerns

For the third consecutive session, benchmark indices ended lower amid weakness in the Asian peers triggered by caution ahead of the US Federal Reserve’s policy decision later in the day.

Also, market participants rolled over some positions in the futures and options (F&O) segment from the near month October series to November series tomorrow.  The sharp slide on Dalal Street was led by private banking major Axis Bank on account of a sharp increase in impairments.

The 30-share Sensex ended 214 points down at 27,040 while the Nifty slipped 62 points at 8,171.

The broader markets, however, outperformed their larger peers with BSE MidCap ending down 0.5% and SmallCap index closing flat. The health of the market was weak with 1,472 losers and 1,168 gainers on the BSE.

The Indian rupee was trading lower at Rs 65.01 against the US dollar on the back of month-end dollar demand from importers.

GLOBAL MARKETS

Asian markets finished lower today ahead of the FOMC meet outcome, which is due later today. Shanghai Composite closed 1.7% down while Hang Seng closed 0.8% down. Nikkei however ended 0.7% up.

The European markets are trading higher with major indices trading nearly 1% up.

SECTORS & STOCKS

Sectorally, BSE Bankex index ended down by 2.5% , followed by BSE Realty index, down by 1.2%. On the upside, BSE Consumer Durables index finished up by 1.6%.

Axis Bank finished the biggest loser 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 plunged 7.3%

Other banking and financial shares also bled with SBI, ICICI Bank, and HDFC finishing down between 1-4.5% each.

Lupin 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 slipped nearly 2%.

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 gained 0.2%

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 advanced 0.7%

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 jumped 1.6%.

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 ended flat.

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 slipped nearly 2%