Sensex, Nifty end flat; RIL, Infosys offset losses led by HDFC twins, auto stocks
Equity benchmarks ended flat but the positive trend continued for sixth consecutive session despite subdued global peers. Investors focussed on global cues and the movement of crude oil prices due to lack of domestic cues.
Ongoing reforms and likely slower than expected Fed rate hike (post recent policy minutes) also caused positive momentum in the market.
Reliance Industries (up 1.75 percent) and Infosys (up 2.6 percent) helped the market end higher for sixth consecutive day, but the selling pressure in HDFC group stocks (down around 0.7 percent) and auto stocks capped gains.
The 30-share BSE Sensex rose 26.53 points to 33,588.08 and the 50-share NSE Nifty gained 6.50 points at 10,348.80.
Experts feel the current volatility is expected to continue in the coming week due to expiry of November futures & options contracts. Even the stock specific action is likely to continue. Investors awaited Gujarat assembly elections, the next key trigger.
“After the completion of Q2 results investors are looking for fresh triggers, upcoming state election will be a key catalyst in the direction,” Vinod Nair, Head of Research, Geojit Financial Services said.
On the global front, Fed’s divergence in opinion on inflation growth in the minutes may refrain the chair to take aggressive rate hike in December which is positive for Indian market, he added.
Anand James, Chief Market Strategist, Geojit Financial Services feels with expiry approaching, volatility has begun to dominate, especially in the banking sector.
Asian stocks were mostly subdued in trade, with the China’s Shanghai Composite losing 2.26 percent following new liquidity rules in the country. European markets were mixed at the time of writing this article.
Back home, the broader markets outperformed equity benchmarks as the Nifty Midcap was up 0.3 percent. About 1,445 shares advanced against 1,252 declining shares on the BSE.
Meanwhile, the rupee appreciated further in late trade, gaining 30 paise at 64.62 against the US dollar.
Dr Reddy’s Labs fell 2.3 percent, may be owing to likely competition to Vitorin generic that treats high cholesterol in blood. US-based Amneal Pharmaceuticals has received approval from the US Food and Drug Administration for Vitorin generic that has a brand size of around USD 678 million in the US.
Infosys was up 2.6 percent, which helped the IT index gain 1 percent. Sources told CNBC-TV18 that Pravin Rao is likely to continue as CEO of Infosys. Ashok Vemuri is out of the race for CEO while BG Srinivas is unlikely to consider returning to Infosys.
PSU Bank index lost 0.4 percent on profit booking after yesterday’s 1 percent gains.
SBI Life Insurance Company, HDFC Standard Life Insurance Company, ICICI Prudential Life Insurance Company and Max Financial Services (Max Life) shares fell 3-5 percent as there is a proposal to increase tax rate for insurance companies from current 14.3 percent level.
PC Jeweller was up 2 percent. Motilal Oswal has initiated coverage with buy rating on the stock, citing strong earnings growth hope on value migration to organised players. The research house sees 36 percent potential upside in the stock at a target price of Rs 490 per share. Gitanjali Gems also gained 6 percent.
