Sensex ends mildly higher but posts 1% weekly loss; SBI, LT up 4-6%; Aurobindo sinks

Benchmark indices ended volatile session mildly higher on Friday after GST Council meeting, but posted 1 percent loss for the week. Investors awaited September industrial output due later today and October CPI inflation data on coming Monday.

Banks, FMCG and infra stocks led the market higher while pharma stocks, HDFC (down 1 percent), Reliance Industries (down 1.85 percent) and Tata Motors capped upside.

The 30-share BSE Sensex rose 63.63 points to 33,314.56 and the 50-share NSE Nifty gained 12.80 points at 10,321.80 amid earnings.

PSU Bank (up 4.3 percent) was biggest gainer among sectoral indices, followed by Nifty Bank (up 0.82 percent) after SBI earnings.

SBI surged 6.3 percent as fall in slippages helped asset quality improve on sequential basis in Q2, though provisions dragged profit 38 percent. Deliver buying numbers are expected to be strong. ICICI Bank was also participated in rally, up 2.3 percent.

Larsen & Toubro gained 4 percent ahead of second quarter earnings that will be announced on Saturday. A CNBC-TV18 poll expects 10 percent growth in profit and operating income YoY. Its subsidiary L&T Construction has bagged order worth Rs 4,023 crore.

HUL gained 3 percent after GST Council meet. GST rate on detergents has been cut to 18 percent from 28 percent.. Gillette gained 0.74 percent as GST rate on shaving products lowered to 18 percent from 28 percent.

Mahindra & Mahindra shares gained 2 percent as its operating profit margin in Q2 at 16 percent was ahead of estimates (14 percent). Bosch fell 3 percent after earnings missed estimates.

Tata Motors slipped 4 percent on cautious management commentary on JLR. CLSA maintained sell rating with a target price of Rs 395 per share. “Management’s commentary on Jaguar Land Rover was cautious on weak demand and margin pressure. We raised earnings per share estimates for the current financial year by 14 percent but remain concerned on Jaguar Land Rover,” CLSA said.

Aurobindo Pharma was biggest loser among Nifty 50 stocks, falling 6 percent, even as earnings beat analyst expectations. The stock dragged Nifty Pharma index 1 percent.

Just Dial was up 9 percent on a media report that Google may be buying the company, but company denied the same.

Jaypee Infratech rallied 10 percent and Jaiprakash Associates gained 6 percent after a media repot indicated that Sajjan Jindal-promoted JSW is expected to acquire major stake in Jaypee Associates and jointly bid to invest in Jaypee Infratech.

In earnings reaction, Motherson Sumi and Bank of India were down nearly 2 percent while Crompton Greaves Consumer, SAIL and MRF gained around 4 percent.
Havells was down 3 percent as there was no announcement related to cable business in GST Council meeting. V-Guard Industries was also down 3 percent.