Key benchmark indices suffered strong losses in volatile trade led by slide in index pivotals HDFC, Reliance Industries and HDFC Bank. The barometer index, the S&P BSE Sensex, lost 343.87 points or 1.01% at 33,690.09, as per the provisional closing data. The Nifty 50 index lost 99.85 points or 0.98% at 10,124.90, as per the provisional closing data. The Sensex settled below the psychological 34,000 level after sliding below that level in opening trade.
Trading was volatile as traders rolled over positions in the F&O segment from the near month October 2018 series to November 2018 series. The October 2018 F&O contracts expired today, 25 October 2018.
Trading for the day began on a weak note as the key benchmark indices saw a gap-down opening on negative Asian stocks. Stocks extended slide in morning trade on selling pressure in index pivotals. Key indices continued to trade with weakness near the day's low in mid-morning trade. Stocks staged a mild recovery in early afternoon trade. Indices pared losses in afternoon trade. Volatility struck bourses in mid-afternoon trade. Market traded with weakness in late trade.
The S&P BSE Mid-Cap index fell 0.58%. The S&P BSE Small-Cap index fell 0.98%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 936 shares rose and 1574 shares fell. A total of 127 shares were unchanged.
Bharti Airtel lost 7.18% ahead of its September quarterly result today, 25 October 2018.
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Yes Bank declined 2.77% ahead of its September quarterly result today, 25 October 2018.
Wipro rose 3.3%. 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.
Maruti Suzuki India fell 0.7% after net profit declined 9.8% to Rs Rs 2240.40 crore on 0.5% decline in net sales to Rs 21551.90 crore in Q2 September 2018 over Q2 September 2017. The result was announced during trading hours today, 25 October 2018.
The operating profit was Rs 2710.10 crore, lower by 9.5% over the same period previous year on account of increase in commodity prices, adverse foreign exchange movement and higher sales promotion expenses partially offset by cost reduction efforts. The company said it sold a total of 484,848 vehicles in Q2 September 2018, lower by 1.5% over the same period of the previous year. Sales in the domestic market stood at 455,400 units and exports were at 29,448 units.
Overseas, European shares rose as investors digested corporate earnings and looked ahead to a rate decision by the European Central Bank (ECB).
ECB is due to meet later Thursday and will announce if there has been any changes to policy. Meanwhile, the spat between Rome and Brussels over next year's budget continues. Italian Finance Minister Giovanni Tria said Wednesday that he sees no reason to present a new budget, after the European Commission said the plan was not good enough and wanted a new version within three weeks' time.
Most 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.
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