Key indices decline for the second straight session

Losses for stocks of state-run banks and index heavyweight L&T outweighed gains for stocks of metal companies and index heavyweight Infosys to push key benchmark indices slightly lower. The barometer index, the S&P BSE Sensex, fell 19.17 points or 0.07% to settle at 27,287.66. The 50-unit CNX Nifty fell 9.95 points or 0.12% to settle at 8,251.70. The two key benchmark indices edged lower for the second straight trading session.

Shares of public sector oil marketing companies (PSU OMCs) dropped. Bharti Airtel edged higher after announcing that the proceeds from the divestment of its tower assets in Africa will be utilized to repay debt.

The Sensex fell 19.17 points or 0.07% to settle at 27,287.66, its lowest closing level since 16 October 2015. The index lost 116.28 points or 0.42% at the day's low of 27,190.55. The index jumped 138.41 points or 0.5% at the day's high of 27,445.24 in morning trade, its highest level since 20 August 2015.

The Nifty dropped 9.95 points or 0.12% to settle at 8,251.70, its lowest closing level since 16 October 2015. The index fell 44.50 points or 0.53% at the day's low of 8,217.15. The index rose 32.75 points or 0.39% at the day's high of 8,294.40 in morning trade, its highest level since 21 August 2015.

The market breadth indicating the overall health of the market was negative. On BSE, 1,377 shares fell and 1,330 shares rose. A total of 159 shares were unchanged. The BSE Mid-Cap index fell 0.15%. The BSE Small-Cap index fell 0.37%. The decline in both these indices was higher than Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2871 crore, lower than turnover of Rs 3376.86 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (down 0.78%), BSE Bankex index (down 0.77%), BSE Capital Goods index (down 1.04%), BSE Oil & Gas index (down 0.54%), BSE Power index (down 0.29%) and BSE Realty index (down 1.79%) underperformed the Sensex. The S&P BSE IT index (up 0.43%), BSE Auto index (up 0.27%), BSE Consumer Durables index (down 0.06%), BSE Metal index (up 1.17%) and BSE Teck index (up 0.57%) outperformed the Sensex. The S&P BSE FMCG index was unchanged for the day.

Bank stocks witnessed selling pressure. Among PSU banks, Bank of India (down 2.74%), Union Bank of India (down 2.44%), Andhra Bank (down 2.37%), Canara Bank (down 2.11%), State Bank of India (down 1.87%), Syndicate Bank (down 1.38%), Punjab National Bank (down 1.81%), Bank of Baroda (down 1.08%), IDBI Bank (down 1.12%), Corporation Bank (down 0.33%) and Indian Overseas Bank (down 0.96%) edged lower. United Bank of India (up 0.22%) edged higher.

Among private sector banks, Kotak Mahindra Bank (down 0.1%), IndusInd Bank (down 0.19%) and ICICI Bank (down 1.36%) edged lower. Axis Bank (up 0.52%) edged higher.

HDFC Bank edged lower as second quarter results came more or less in line with market expectations. The stock fell 0.03% at Rs 1,094.80. The stock hit a high of Rs 1,103.90 and a low of Rs 1,085.30 in intraday trade. The bank's net profit rose 20.49% to Rs 2869.45 crore on 24.68% growth in total income to Rs 17324.28 crore in Q2 September 2015 over Q2 September 2014. HDFC Bank's net interest income rose 21.2% to Rs 6680.90 crore in Q2 September 2015 over Q2 September 2014.

Yes Bank dropped 0.64% at Rs 765.20. The private sector bank has announced reduction in interest rate on savings bank account to 6% from 7% with effect from 1 November 2015.

Metal shares edged higher on renewed buying. Vedanta (up 3.75%), Hindustan Zinc (up 2.04%), Tata Steel (up 1.66%), National Aluminium Company (up 1.5%), Jindal Steel & Power (up 0.93%), Hindalco Industries (up 1.3%), JSW Steel (up 1.35%), and Steel Authority of India (up 0.27%) edged higher. NMDC (down 0.74%) edged lower.

Shares of public sector oil marketing companies (PSU OMCs) dropped. BPCL (down 1.31%), HPCL (down 2.58%) and Indian Oil Corporation (down 1.26%) edged lower.

In the global commodities markets, Brent crude oil futures for December settlement was currently off 22 cents at $48.49 a barrel. The contract had risen 10 cents or 0.2% to settle at $48.71 a barrel during the previous trading session.

Capital goods stocks edged lower. Bharat Electronics (down 1.46%), Crompton Greaves (down 1.67%), Bharat Heavy Electricals (down 1.77%), L&T (down 1.44%), Siemens (down 0.75%), Havells India (down 0.85%), Thermax (down 0.02%) and Alstom T&D India (down 0.6%) edged lower. Beml (up 0.56%), Sadbhav Engineering (up 2.23%) and ABB India (up 3.31%) edged higher.

Pharma stocks were mostly lower. Dr Reddy's Laboratories (down 3.3%), Glenmark Pharmaceuticals (down 0.57%), Lupin (down 0.66%), Wockhardt (down 0.14%) and GlaxoSmithkline Pharmaceuticals (down 0.1%) edged lower. Strides Arcolab (up 1.22%), Divi's Laboratories (up 0.76%), Cipla (up 0.66%) and Ipca Laboratories (up 0.05%) edged higher.

Sun Pharmaceutical Industries fell 1.43% at Rs 888.85 as the stock turned ex-dividend today, 21 October 2015, for dividend of Rs 3 per share for the year ended 31 March 2015.

ACC fell 0.1% at Rs 1,380.65. The stock hit a high of Rs 1,386.20 and a low of Rs 1,358 in intraday trade. ACC's consolidated net profit fell 40.2% to Rs 115.21 crore on 1.5% decline in total income to Rs 2808.29 crore in Q3 September 2015 over Q3 September 2014. ACC said that the company made a provision of Rs 38 crore in Q3 September 2015 for the District Mineral Foundation and National Mineral Exploration Trust. While sales realization was almost flat, there was a reduction in input and energy costs, ACC said. The company continues its focus on cost management, ACC said.

Bajaj Auto edged higher after the company reported improvement in its operating EBITDA (earnings before interest, taxation, depreciation and amortization) margin in Q2 September 2015. The stock rose 3.28% at Rs 2,518.25. The stock hit a high of Rs 2,535 and a low of Rs 2,435 in intraday trade. The company's net profit surged 57.9% to Rs 933.06 crore on 2.85% growth in total income to Rs 6250.42 crore in Q2 September 2015 over Q2 September 2014. The sharp surge in bottom line on year-on-year basis was due to base effect: Bajaj Auto's bottom line in Q2 September 2014 was hit adversely by a one-time exceptional charge of Rs 340.29 crore related to national calamity contingent duty (NCCD).

Bajaj Auto's operating EBITDA before mark-to-market (MTM) gain/loss related to foreign currency transactions rose 8.73% to Rs 1357 crore in Q2 September 2015 over Q2 September 2014. Operating EBITDA margin improved to 22.1% in Q2 September 2015 from 20.8% in Q2 September 2014.

Hero MotoCorp rose 0.54% to Rs 2,619.05. The stock hit a high of Rs 2,665 and a low of Rs 2,592.20 in intraday trade. The company's net profit rose 1.13% to Rs 772.06 crore on 2.37% decline in total income to Rs 6939.68 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 20 October 2015. The company's EBITDA (earnings before interest, taxation, depreciation and amortization) margin improved to 15.85% in Q2 September 2015 from 13.52% in Q2 September 2014.

Pawan Munjal, Chairman, Managing Director and Chief Executive Officer of Hero MotoCorp said that Q2 September 2015 saw the beginning of a sales revival and the management is cautiously optimistic that this trend will continue in the second half of FY 2016. The festive season could lead to positive sentiment in the market, which may help maintain the momentum in the coming months, Munjal said.

Wipro rose 1.04% at Rs 577.90. The company's consolidated net profit rose 7% to Rs 2240 crore on 7% growth in gross revenue to Rs 12510 crore in Q2 September 2015 over Q2 September 2014. The results are as per International Financial Reporting Standards (IFRS). The company announced the results after market hours today, 21 October 2015.

Wipro's revenue from IT services business rose 2.1% to $1.83 billion in Q2 September 2015 over Q1 June 2015. The sequential growth stood at 3.1% in constant currency terms. Wipro expects revenue from its IT services business to be in the range of $1.84 billion to $1.87 billion in Q3 December 2015. The company added 67 new customers in its IT services business in Q2 September 2015.

Idea Cellular rose 0.17% at Rs 151.60. The stock hit a high of Rs 153.50 and a low of Rs 150.15 in intraday trade. The company's consolidated net profit rose 7.06% to Rs 809.26 crore on 13.48% growth in total income to Rs 8722.72 crore in Q2 September 2015 over Q2 September 2014. Earnings before interest, taxation, depreciation, and amortization (EBITDA) rose 22.7% to Rs 3057 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours today, 21 October 2015.

Idea Cellular will launch its 4G LTE services in 10 service areas, covering 750 large and small towns by the first half of 2016.

Bharti Airtel edged higher after announcing that the proceeds from the divestment of its tower assets in Africa will be utilized to repay debt. The stock was up 2.7% at Rs 371.45. The company at the fag end of trading session yesterday, 20 October 2015, announced that it has completed the sale of its tower assets in seven countries in Africa, representing close to 60% of the total tower base. The total value of the proceeds from all the concluded transactions in the seven countries is over $1.7 billion and is being utilised for reducing the debt of the company.

Key indices edged lower for the second straight session. The Sensex has lost 77.26 points or 0.28% in the preceding two trading sessions from its close of 27,364.92 on 19 October 2015. The Sensex has risen 1,132.83 points or 4.33% in this month so far (till 21 October 2015). The Sensex has fallen 211.76 points or 0.77% in this calendar year so far (till 21 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,454.12 points or 9.88%. The Sensex is off 2,737.08 points or 9.11% from a record high of 30,024.74 hit on 4 March 2015.

India's stock market remains closed tomorrow, 22 October 2015, on account of Dussehra.

Powered by Capital Market - Live News