Market turns rangebound

Key equity benchmarks were hovering in a narrow range with minor gains in afternoon trade. At 13:30 IST, the barometer index, the S&P BSE Sensex rose 119.33 points or 0.32% at 37,999.73. The Nifty 50 index also advanced 35.15 points or 0.31% at 11,269.70.

The S&P BSE Mid-Cap index was up 0.18%. The S&P BSE Small-Cap index rose 0.29%.

The market breadth was negative. On the BSE, shares 982 rose and 1,211 shares fell. A total of 171 shares were unchanged.

IT major Infosys rose 3.10% ahead of its Q2 result today, 11 October 2019.

Cipla (up 3.23%), Ultratech Cement (up 2.28%) and ONGC (up 2.23%) advanced. Yes Bank (down 5.13%), Mahindra & Mahindra (down 1.88%) and GAIL (down 1.57%) declined.

Tata Consultancy Services (TCS) declined 1.37%. The IT major reported 1.09% fall in consolidated net profit to Rs 8,042 crore on 1.23% rise in total income to Rs 40,338 crore in Q2 September 2019 over Q1 June 2019. The result was announced after market hours yesterday, 10 October 2019.

The company's board declared a second interim dividend of Rs 5 and a special dividend of Rs 40 per equity share of the company. The record date for the dividend is Friday, 18 October 2019.

Revenue growth in Q2 September 2019 was led by Life Sciences & Healthcare (+16%) and Communications & Media (+11.8%). All the other verticals including BFSI (+8%), Manufacturing (+7.8%), Technology & Services (+5.6%) and Retail & CPG (+4.8%) continued to grow.

Growth in Q2 September 2019 was led by Europe (+16%) and UK (+13.3%). North America and Asia Pacific grew 5.3% and 6.5% respectively. Emerging markets showed steady growth including India (+7.7%), MEA (+7.3%) and Latin America (+7.3%).

Commenting on the Q2 performance, Rajesh Gopinathan, chief executive officer and managing director, TCS said the company ended Q2 September 2019 with steady growth despite increased volatility in the financial services and retail verticals.

Tata Steel advanced 1.40%. Tata Steel's India production volumes rose 4.65% to 4.5 million tons while the sales volumes fell 4.17% to 4.14 million tons in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 10 October 2019.

IndusInd Bank was trading 1.46% lower at Rs 1,211, extending yesterday's 6.15% fall triggered by the company's Q2 earnings. IndusInd Bank's net profit rose 50.32% to Rs 1,383.37 crore on a 31.40% increase in total income to Rs 8,877.02 crore in Q2 September 2019 over Q2 September 2018. The bank's provisions and contingencies jumped 24.98% to Rs 737.71 crore in Q2 September 2019 over Q2 September 2018. The result was announced during market hours yesterday, 10 October 2019.

Shares of state-run oil marketing companies declined after crude oil prices firmed up in the international commodity market. Indian Oil Corporation (IOCL) (down 3%) and Bharat Petroleum Corporation (BPCL) (down 0.92%) declined.

In the commodities market, Brent crude for December 2019 settlement was up $1.04 at $60.14 a barrel. The contract rose 45 cents or 1.34% to settle at $59.10 a barrel during the previous trading session.

Crude oil prices flared up amid reports of an explosion in an Iranian tanker that has set the National Iranian Oil Company-owned vessel on fire near the Saudi port city of Jeddah. The explosion is said to have caused heavy damages to the vessel and oil is spilling into the Red Sea. The report further added that the reason for the explosion is still under investigation but reports suggested that it may be a terrorist attack.

Overseas, shares in Europe and Asia were trading higher on Friday as high-level U.S.-China trade talks progressed into a second day and optimism grew that a truce can be achieved.

US stocks rose on Thursday on hopes that top-level US-China trade talks would yield at least a partial deal, while a jump in Apple's shares also boosted the market.

US President Donald Trump said trade talks between US and Chinese officials on Thursday went very well and the two sides had a very, very good negotiation.

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