Market opens on a weak note

Trading for the day began on a weak note as the key benchmark indices saw a gap-down opening on negative Asian stocks. At 9:26 IST, the barometer index, the S&P BSE Sensex, was down 285 points or 0.84% at 33,748.96. The Nifty 50 index was down 76.70 points or 0.75% at 10,148.05. The Sensex dropped below the psychological 34,000 level in opening trade.

The S&P BSE Mid-Cap index was down 0.86%. The S&P BSE Small-Cap index was down 0.95%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 310 shares rose and 989 shares fell. A total of 43 shares were unchanged.

Trading could be volatile as traders roll over positions in the F&O segment from the near month October 2018 series to November 2018 series. The October 2018 F&O contracts expire today, 25 October 2018.

Overseas, Asian stocks declined as concerns mount that corporate profits and economic growth are peaking amid rising borrowing costs. US stocks dropped yesterday, 24 October 2018 as mixed corporate earnings and weak housing data fueled anxiety that rising prices will crimp economic growth.

China's recent stock market troubles and political drama in Europe surrounding Italy's budget row with the European Union as well as Britain's efforts to exit from the EU also have combined to hurt investor sentiment.

On the US data front, the flash reading of IHS Markit's manufacturing purchasing managers index rose to a five-month high of 55.9 in October from 55.6, while the flash services PMI rose to a two-month high of 54.7 from 53.5 in September. A reading of at least 50 indicates improving conditions.

Back home, Wipro rose 1.07%. On a consolidated basis, Wipro's net profit fell 9.94% to Rs 1885.60 crore on 4.03% increase in revenue to Rs 14541 crore in Q2 September 2018 over Q1 June 2018. IT services revenues rose 4.9% to Rs 14,377 crore in Q2 September 2018 as against Rs 13,700 crore in Q1 June 2018. The result was announced after trading hours yesterday, 24 October 2018.

For the quarter ending 31 December 2018, Wipro expects revenue from IT services business to be in the range of $2,028 million to $2,068 million. Comparable revenue excluding India PSU and India Government business for the quarter ended 30 September 2018 was $2,007 million. This translates to sequential growth outlook of 1% to 3%.

Abidali Z. Neemuchwala, CEO and member of the board said that Wipro has delivered a strong quarter on both revenue and margin growth. The demand environment is robust, especially for digital transformation and enterprise scale modernization services.

Indiabulls Real Estate fell 1.81%. On a consolidated basis, Indiabulls Real Estate's net profit rose 20.08% to Rs 75.89 crore on 121% increase in net sales to Rs 1040.42 crore in Q2 September 2018 over Q2 September 2017. The result was announced after trading hours yesterday, 24 October 2018.

Tata Chemicals (TCL) declined 1.38%. Tata Chemicals (TCL) said it signed a memorandum of understanding (MoU) with CSIR - CECRI (Central Electrochemical Research Institute), Karaikudi to explore collaborative technology scaling up of manufacturing cathode materials for Lithium-ion cells.

This partnership is intended to build a strong foundation on commercially scalable cathode chemistries and is in line with the direction for increased electrification in transportation and the thrust on cleaner forms of energy in India. The announcement was made after trading hours yesterday, 24 October 2018.

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