Market Wrap Podcast, Oct 21: Here's all that happened in the markets today

A fag-end recovery led by select financial shares helped the key benchmark indices recoup some of their losses, even as index heavyweights - Reliance Industries, Infosys and TCS languished lower.

Although the indices had started higher amid mixed global cues, earnings disappointment within the consumption space and valuation concerns dragged the markets lower for a third consecutive day.

Effectively, the 30-pack BSE Sensex fell over 1,100 points from the day's high to end below the 61,000-mark at 60,923, down 336 points or 0.55 per cent.

The Nifty50 too oscillated between 18,384 and 18,048 during the day before signing-off at 18,178, down 89 points.

The broader markets moved in tandem too with the BSE Midcap and Smallcap indices falling 0.4 per cent and 0.7 per cent, respectively.

Among individual stocks, shares of Asian Paint dipped nearly 8 per cent, hitting an over two-month low of Rs 2,922 on the BSE in Thursday's intra-day trade, after the company reported 28 per cent year on year decline in consolidated net profit at Rs 596 crore in July-September quarter (Q2FY22), due to higher raw material cost. The stock of India's leading paint company hit its lowest level since August 12, 2021. It, however, ended 5 per cent lower at Rs 3,015 per share.

On the flipside, shares of Shoppers Stop surged 20 per cent to hit a fresh 52-week high of Rs 335.85 on the BSE in today’s intra-day trade after the company's revenue grew 116 per cent year-on-year at Rs 631.60 crore in the July-September quarter (Q2FY22). In the past one month, the stock has outperformed the market as it rallied 38 per cent, as compared to a 3.6 per cent rise in the S&P BSE Sensex.

That apart, ace investor Rakesh Jhujhunwala has bought an additional 10 million equity shares, or 1.97 per cent stake, in Tata Motors DVR in July-September (Q2FY22), increasing his stake in the Tata Group company to 3.93 per cent in Q2 from 1.97 per cent at the end of June quarter (Q1), according to the shareholding pattern filed by the company. Following the development, shares of the company soared 10 per cent to close at Rs 256 on the BSE.

Sectorally, barring the financial space, it was a sea of red on the bourses with the Nifty IT, Metal, and Consumer Durable indices falling between 2 and 2.5 per cent.

On the upside, the Nifty PSU Bank index added nearly 3 per cent today led by Union Bank of India, Indian Bank, Bank of Maharashtra, UCO Bank, and PNB.

Individually, shares of Union Bank of India hit a 52-week high at Rs 51.70, up 8.5 per cent on the BSE in Thursday’s intra-day trade. The stock has rallied 14 per cent in the last two trading days on improved business outlook, despite weakness in the broader market. Thus far in October, the stock has appreciated by 42 per cent, after most of the rating agencies upgraded outlook of the bank from negative to stable.

The Nifty Bank index, meanwhile, ended 1.3 per cent higher at 40,030 levels after hitting a new record high of 40,200 in the intra-day trade.

On Friday, all eyes would be on the stock of Reliance Industries as the company is set to report its Q2FY22 earnings later in the day. Analysts expect the September quarter performance of the oil-to-telecom conglomerate to be led by growth in retail, digital-telecom business, and steady petrochemical margins.

Besides RIL, YES Bank, Tata Consumer Products, INOX Leisure, and Hindustan Zinc are some of the other prominent companies set to report their Q2 results tomorrow.

Overall, expect a volatile session tomorrow as analysts are now cautious on the markets given the sharp run up seen over the last few months. They suggest investors use a rally to book profit.