Markets remain weak; Smallcaps outperform

Markets continue to remain weak dragged down by FMCG, select banking and technology shares. The market participants are expected to trade cautiously ahead of the October derivative contracts expiry, which is due today.

At 10:40 AM, the Sensex was at 26,955, 84 points down while the Nifty opened at 8,140, down 30 points.

The top losers on the Sensex are BHEL, Axis Bank, ITC, Bharti Airtel and Gail, all down between 1-3.1% each.

The top gainers on the Sensex are Tata Motors, Lupin, Dr. Reddy’s , Vedanta and Bajaj Auto, up between 1-2% each.

BSE Smallcap index is 0.3% up.  In the smallcap segment, TRF has surged 20% to Rs 329 on the BSE after the company reported a consolidated net profit of Rs 4.14 crore for the quarter ended September 30, 2015 (Q2) against a loss of Rs 9 crore in the year ago quarter.
 
Manugraph India has locked in upper circuit for third straight day, up 10% at Rs 51.60, also its fresh 52-week high on the BSE, after the company posted nearly five-fold jump in net profit for the quarter ended September 2015 (Q2FY16).

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(updated 9:40 AM)

Markets opened the session on a flat note amid muted trend in the global markets after the US Federal Reserve hinted at a proposed interest rate hike in December, however, keeping them unchanged for now.

Also, investors would be on edge as the October derivative contracts expires today.

At 9:40 AM, the Sensex was at 26,964, 75 points down while the Nifty opened at 8,143, down 28 points.

The broader markets are showing divergent trend  with BSE Midcap index, down by 0.1% and Smallcap index up by 0.3 % . The market breadth is positive with 683 advances against 326 declines on the BSE.


"On Wednesday, the Nifty opened below the recent minor support level of 8,217. After a consolidation of nearly three hours, the selling pressure aggravated in the market immediately post the mid-session. This was mainly on the back of sharp selloff seen across the banking space," points out a morning note from Angel Broking.

"We have been mentioning about the trading range of 8350 to 8170. The index has now closed around the lower end of the range. Going forward, if the Nifty manages to sustain above yesterday’s high of 8209 then we may witness a bounce towards 8,280 – 8,300 levels. On the flipside, 8,139 – 8,088 are seen as immediate support levels for the index," it adds.

GLOBAL STOCKS

The US Federal Reserve raised hopes of an interest rate hike in the month of December as growth of the US economy improves. Following the development, the Nasdaq gained1.3% while the Dow Jones and S&P 500 rose 1.1 and 1.2% respectively.

Meanwhile, European peers settled higher on Wednesday after good earnings and a rebound in oil prices cheered the sentiments.

Asian markets gained widely following a firm closing on the Wall Street after the Fed decided to leave interest rates near zero.

RESULTS CORNER

Dr Reddy’s Lab, NTPC, Nestle India, Bharat Forge, Colgate-Palmolive, Crompton Greaves, Emami, Glenmark Pharma, Torrent Pharma and YES Bank will be on the investors’ radar as they announce the quarterly results today.

SECTORS & STOCKS

Sectorally, BSE FMCG index is down by 0.5% followed by BSE Bankex, down by 0.2%. On the upside, BSE Healthcare index is up by 0.3%

RIL is likely to show some action after Reliance Jio Infocomm decided to raise Rs 3,000 crore by issuing secured redeemable non-convertible debentures on private placement basis. The stock is flat.

Among the pharma pack, Dr. Reddy’s is up 1.3% ahead of its quarterly results. After registering losses for 2 sessions, Lupin has gained 0.3% in today’s trades.

Sun Pharma has initiated a recall of a little over a million boxes of Loratadine, an anti-allergic drug, from the US market after checks revealed the tablets were ‘super potent’ and ‘out of specification’. The stock has lost 0.8%

Axis Bank has extended its losses after slipping to a month’s low in yesterday’s trades. The bank plans to raise Rs 3,000 crore by way of infrastructure bonds. The stock is down nearly 1%

Maruti Suzuki, which recently set up a premium dealership network for select cars, will start pilot for a new sales network to sell light commercial vehicles due for launch early next year which will roll out during the current quarter in four states. The stock is down marginally.

Hero Motocorp may post growth in excess of 20% during the month of Octobe on the back of strong sales during the Navratri and Dusshera festive season. The stock is however down by 0.4%

NTPC's Vindhyachal Super Thermal Power Station (VSTPS) will become country's largest power generating plant on Friday with the commissioning of another 500 MW unit. However, ahead of its quarterly results, the stock has lost 0.6%

The banking stocks are trading mixed after the US Fed hinted at December rate hike. HDFC Bank, and SBI are down between 0.4-0.8% each. ICICI bank is up by 0.5%

ONGC Videsh has decided to double its investments in Africa from the current $8 billion over the next three years. ONGC is up by 0.2%