Benchmark indices ended flat, amid a volatile trading session, as gains in pharma shares helped offset losses led by ICICI Bank after the private lender posted a steep fall in its net profit.
Weakness among Asian and European peers dented sentiment after Bank of Japan failed to enthuse investors by deciding against any fresh market stimulus.
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The S&P BSE Sensex inched up 3.5 points to end at 25,606.62 and the Nifty50 rose 2.55 points to close at 7,849.80. In the broader market, BSE Midcap and Smallcap indices ended mixed.
“Since we are in the midst of earning season and there have been no major surprises, Nifty is likely to move in a narrow trading zone of 7,400-7,800. One has to maintain stock specific approach atleast till the monsoon which can be a positive trigger for the markets if it’s favorable. This is a very good time to allocate money from 2-3 years perspective. We have a positive outlook on private sector banking space/NBFCs, auto and auto-ancillary companies, and very selectively for power utilities,” says Sachin Shah, Fund Manager, Emkay Investment Managers.
Among overseas markets, Asian and European stocks edged lower in the wake of the Japanese central bank's decision against expanding monetary stimulus. Losses for US stocks overnight also weighed on Asian markets. CAC, DAX and FTSE are down 1% each.
Oil prices edged to new 2016 highs on Friday, lifted by a weak dollar and falling production in the United States, although a looming rise in Middle East output capped gains.
Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 120.63 crore yesterday, as per provisional data released by the stock exchanges.
In the currency front, the rupee recovered by 7 paise to 66.45 against the US dollar on fresh selling of the American currency by exporters amid sustained foreign fund inflows.
STOCKS IN ACTION
HDFC Bank gained by over 1%. The bank reported a 20% growth in net profit, on back of a strong 24% jump in net interest income for the Q4FY16.
Shares of Lupin were up almost 2% after the company and its US subsidiary, Lupin Pharmaceuticals Inc., announced the re-introduction of Methergine (methylergonovine maleate) Oral tablets 0.2mg in the US.
Bharti Airtel lost 2.82% after the company said it will undertake buyback of shares only after the approval from Delhi High Court for the scheme of amalgamation of its wholly owned subsidiary with the company.
ICICI Bank slipped 1% after posting a steep fall in its net profit for the quarter that ended in March 2016 at Rs 702 crore. The lender reported an over 70% fall in its net profit on a year on year basis. It had posted a net profit of Rs 3,018.13 crore in the December quarter.
Shares of Reliance Industries slipped 1.5%. The Parliament’s Public Accounts Committee on Thursday said Reliance Industries (RIL) is entitled to recover all cost incurred on unviable gas discoveries as the Directorate General of Hydrocarbons (DGH) had allowed it to retain the entire KG-D6 block area.
HCL Technologies has fallen to its 52-week low of Rs 759, down 5%, extending its Thursday’s 4.5% decline on the BSE, after the company reported disappointing set of numbers for the quarter ended March 2016 (Q4FY16).
Among other shares, Tata Metaliks surged 16%, also its 52-week high on the BSE, after the company reported 71% jump in consolidated net profit at Rs 48.62 crore for the quarter ended March 2016 (Q4FY16), on the back of strong operational performance.
Diamond Power Infrastructure was locked in upper circuit of 10% at Rs 45.40 on the BSE after the company announced that its board approved the allotment of 12 million equity shares at price of Rs 55 each to promoters on preferential basis.
Shares of Idea Cellular were down over 6% after it reported 39% drop in net profit to Rs 575.6 crore in the quarter ended March compared to Rs 941.8 crore in the same quarter last year because of increase in finance costs.
Jubilant FoodWorks dipped almost 4%, extending its Thursday’s 11% fall on the NSE after the company’s promoter Jubilant Consumer Private Limited, sold nearly 4% stake in the company for Rs 300 crore through open market.
SQS India BFSI rallied 11% after the company reported nearly seven-fold jump in consolidated net profit at Rs 10.60 crore for the fourth quarter ended March 2016 (Q4FY16).