 "Nifty ends tad below 8,700 amid consolidation; RIL, Cipla fall 2%")
Benchmark indices ended lower weighed down by profit taking in financials and index heavyweight Reliance Industries. However, the downslide was limited due to buying interest in select IT and FMCG shares.
The benchmark S&P Sensex closed at 28,077 levels, down 52 points or 0.2%. Nifty50 index slipped 6 points, or 0.1%, to close at 8,693 levels. The broader markets outperformed the benchmark indices. The S&P BSE Midcap and Smallcap rose 0.1%-0.3%.
“Nifty is now placed near the mean of the channel pattern & the positive crossover in the RSI indicates a move towards the upper end of the channel placed near 8,750. Only a sustained move above 8,750 could extend the up move towards 8,900; hence long positions shall be maintained with a trail stop strategy below 8,600,” adds Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal Securities.
The rupee fell further by 6 paise to 66.87 against the dollar at the Interbank Foreign Exchange market today on increased demand for the American currency from importers.
In the overseas markets, European shares were trading higher, kicking off the last trading day of the week with a positive tone as merger deals and a stronger US dollar and corporate earnings support prices.
Meanwhile, as widely expected, the European Central Bank (ECB) kept the policy rate unchanged after a meeting yesterday. Though ECB left its ultra-loose monetary policy unchanged, President Mario Draghi said the European region's central bank had left the door open to more monetary stimulus.
Asian stocks edged lower after the ECB left its policy rate unchanged after the conclusion of a monetary policy meeting.
Oil prices were stable on Friday, weighed by a stronger dollar, but supported by signs that physical fuel markets were tightening after two years of ballooning oversupply.
STOCK TRENDS
Cipla, Reliance Industries, Axis Bank, HDFC, Asian Paints and ONGC were the main laggards from the Sensex pack, down 1%-2%. Wipro rose around 1% ahead of Q2 numbers.
Cipla was the top Sensex loser, down over 3% after the pharma major today lost a case related to overcharging in certain drugs, in violation of the provisions of drug (price control) order, 1995. As per the company's latest annual report, it had received notices of demand aggregating to Rs 1,768.51 crore.
Reliance Industries slipped in trade today by 2% after reporting Q2 earnings yesterday. The company surprised the Street with a record standalone net profit of Rs 7,704 crore for the quarter ending September 2016 (Q2 FY17), 17.9% higher than the Rs 6,534 crore profit after tax (PAT) reported in the same period last year.
However, at the consolidated level, the company reported a net profit of Rs 7,206 crore, 22.9% lower from Rs 9,345 crore in Q2 last year.
Financial majors like Axis Bank, HDFC, SBI and ICICI Bank slipped between 1%-2%. On Thursday, banking stocks shrugged off concerns rising out of the potential fraud involving nearly 3 million debit cards.
Mortgage lender HDFC has raised Rs 500 crore through rupee-denominated bonds from overseas investors.
Among other shares, HCL Technologies gained almost 2% after the company maintained constant currency guidance at 12-14% for FY17.
Trident hit a 52-week high of Rs 63.40 in intra-day trade, after the company reported a 59% growth in net profit at Rs 80.07 crore for the quarter ended September 30, 2016 (Q2FY17).
NBCC dipped 4% to Rs 241, extending its Thursday’s 1% fall on BSE, after the government stake sale in the construction company started yesterday.
Biocon hit a fresh record high of Rs 1,020 in intra-day trade after the company posted robust 52% year on year (YoY) jump in consolidated net profit at Rs 147 crore for the quarter ended September 30, 2016 (Q2FY17), led by the company’s biologics, small molecules businesses and Syngene.
Caplin Point Laboratories rallied 13%, extending its past two day’s rally on BSE, after the stock turned ex-stock split in the ratio of 1:5.
ACC dipped 3% after posting 29% fall in consolidated net profit at Rs 82 crore for the quarter ended September 30, 2016 (Q3CY16), due to lower realization.
