Vedanta outperforms in a weak market; FOMC outcome awaits

Investors remain edgy ahead of the F&O expiry for the month of October due tomorrow

Markets continue to remain weak with Nifty trading below 8,200 owing to weakness 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 further hurt the sentiments and F&O expiry for the month of October due tomorrow.

By 11:30 am, the 30-share Sensex was lower by 146 points at 27,107 while the Nifty slipped 38 points at 8,194. The broader markets are, however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up between 0.2-0.5%. Market breadth is positive on the BSE with 1,168 shares advancing and 1,039 shares declining.

STOCK TRENDS

Axis Bank has slipped 6% after 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. Among other financial peers, ICICI Bank, HDFC and SBI have lost between 0.5-2.6%.

A slump in the global crude prices has hurt the energy shares. ONGC and RIL have shed 1.6% and 0.6% each. 

Lupin has extended losses for second straight day and is down by almost 1.5%. 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.

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

Vedanta’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 company believes that the right mix of low-cost assets fuelled with new technologies to benefit from future demand in India and globally. The stock is up 1.6%.

Bharti Airtel rises 1.3% to Rs.355.20 after the company 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.

After the safeguard duty was imposed on hot-rolled flats (HRF) last month, domestic steel companies are looking for more products to be brought under the duty cover to curb imports. Steel producers have now filed a petition for imposition of safeguard on colour coated products of steel. Tata Steel is up nearly 1%.

Maruti Suzuki reported a 42 per cent 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 nearly 0.7%.