The market ended with decent gains on Thursday, supported by banks and IT stocks. The barometer index, the BSE Sensex rose 77.18 points or 0.19% to 40,129.05, as per the provisional closing data. The Nifty 50 index rose 37.1 points or 0.31% to 11,881.20, as per the provisional closing data.
Steep volatility was witnessed on account of monthly expiry of F&O contracts. The Sensex pared gains after hitting a fresh record high of 40,392.22 in intraday today.
The market sentiment was boosted as data showed that foreign institutional investors were net buyers of Indian stocks. The trading activity showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 7192.42 crore yesterday, 30 October 2019, as per data released by the stock exchanges.
Investors awaited India's fiscal deficit data for April-September period and infrastructure output data for September 2019 which will be announced later today, 31 October 2019.
The broader market outperformed the key benchmarks. The S&P BSE Mid-Cap index rose 1.14% while the S&P BSE Small-Cap index rose 0.94%.
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The market breadth was strong. On the BSE, 1539 shares rose and 1017 shares fell. A total of 149 shares were unchanged. In Nifty 50 index, 32 stocks advanced and 18 stocks declined.
The Nifty opened higher and advanced above 11,900 mark in morning trade. The Nifty remained firm throughout the session amid broad based buying support. The index hit an intraday high of 11,944 in mid-afternoon trade. Profit selling in last hour of the session dragged the index below 11,900 level.
Index pivotal Reliance Industries (RIL) hit a record high of Rs 1,489.50. FMCG major Hindustan Unilever hit a record high of Rs 2,187 today.
Buzzing sector:
The Nifty Bank index continued its winning streak for fifth consecutive session. The banking index was up 0.47% at 30,129.35. The index managed to close above the crucial 30,000-mark.
Yes Bank surged 24.03% to Rs 70.45 after the bank said it received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares. The offer is subject to regulatory approvals/conditions as well as bank's board and shareholders approvals, the bank said during trading hours today.
PSU banks supported the uptrend. United Bank of India (up 13.15%), Bank of India (up 8.12%), Punjab National Bank (up 2.98%), Oriental Bank of Commerce (up 2.94%), Canara Bank (up 2.05%), State Bank of Baroda (up 1.94%), Allahabad Bank (up 0.93%), Union Bank of India (up 0.62%) and Bank of India (up 0.56%) advanced.
Q2 results
RPG Life Sciences hit an upper circuit of 20% at Rs 254.7. The company reported 352.31% rise in net profit to Rs 9.77 crore on 8.92% rise in total income to Rs 98.64 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 30 October 2019.
Ramco Industries fell 2.77% to Rs 182.5. Consolidated net profit rose 39.66% to Rs 50.60 crore on 0.49% fall in total income to Rs 243.67 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 30 October 2019.
Shares of Tata Global Beverages rose 7.91%. The firm's consolidated net profit fell 18.5% to Rs 153.59 crore on 4.2% rise in net sales to Rs 1,834.06 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours yesterday, 30 October 2019. The company said that during the second quarter, it had a one-time impact of the tax rate change on the group consolidated net profit with a charge of Rs 9 crore, arising mainly on account of reversal of opening net deferred tax assets. The group consolidated net profit, excluding the impact of one off items as explained above, is higher by 45% as compared to corresponding quarter of the previous year.
Balaji Amines fell 1.19%. The company reported 7.23% fall in consolidated net profit to Rs 28.74 crore on 5.07% rise in total income to Rs 228.72 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 30 October 2019.
Lakshmi Machine Works dropped 4.36%. The company reported 71.31% fall in consolidated net profit to Rs 12.16 crore on 48.71% rise in total income to Rs 433.20 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 30 October 2019.
Container Corporation of India (Concor) was down 0.55% to Rs 589.05. Concor reported consolidated net loss to Rs 331.95 crore in Q2 September 2019 as compared with net profit of Rs 335.10 crore in Q2 September 2018. Total income fell 5.14% to Rs 1800.45 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after market hours yesterday, 30 October 2019.
JBM Auto fell 1.22% to Rs 226. The commercial vehicle manufacturer's consolidated net profit fell 22.15% to Rs 16.27 crore on a 14.63% decline in revenue from operations to Rs 388.13 crore in Q2 September 2019 over Q2 September 2018.
Stocks in spotlight:
TVS Motor Company fell 1.81%. The firm announced their partnership with Cadisa, one of the largest, respected business groups across Guatemala and El Salvador. As a part of this association, Cadisa will facilitate the opening of 15 flagship outlets for TVS Motor Company in a phase-wise manner. The announcement was made after market hours yesterday, 30 October 2019.
Adani Transmission rose 3.22%. The company said that it has received the letter of intent (LOI) from REC Transmission Projects Company (RECTPCL) to build, own, operate and maintain a transmission project in the state of Gujarat for a period of 35 years.
Shares of Hindustan Construction Company (HCC) were locked in an upper circuit of 20% at Rs 10.06 on reports of Haldiram Snacks, the Pune-based builder, Aniruddha Deshpande, and UV Asset Reconstruction Company (UVARC) offering to buy out Lavasa Corporation. Promoted by HCC, Lavasa was set up as a private, planned hill city built near Pune in Maharashtra in 2000. It reportedly defaulted on Rs 4,150 crore in loans to banks. Thereafter, an operational creditor of Lavasa filed application before NCLT for admission of Lavasa into corporate insolvency resolution process (CIRP) under IBC and the same was admitted on 30 August 2018.
Cadila Healthcare was up 0.74% to Rs 251.80. The firm informed that its formulations manufacturing facility located at Baddi in Himachal Pradesh has received an Establishment Inspection Report (EIR) from the US drug regulator. Shares of the pharma company rose 2.74% to Rs 256.80. The US Food and Drug Administration (FDA) had conducted an inspection at the facility from 15th to 19th July 2019. The EIR report stated that the classification of the facility is 'no action indicated (NAI)'.
Global markets:
European shares were trading in the red while Asian markets closed on a mixed note on Thursday. The US Federal Reserve cut rates for the third time this year but signaled its rate-cut cycle might be at a pause.
The US stock market ended at record high after swinging between gains and losses on Wednesday, 30 October 2019, on the back of the policy statement by the U.S. Federal Reserve that cut interest rates by a quarter of a percentage point. However, market gains capped as the APEC summit in Chile was canceled, removing hopes for Trump to sign a trade deal there with Xi Jinping.
U.S. President Donald Trump said this week he hoped to sign an interim trade deal with Chinese counterpart Xi Jinping during the Nov. 16-17 Asia-Pacific Economic Cooperation summit in Chile. Chilean officials said they canceled the summit to focus on restoring law and order in the country.
The White House said afterwards the United States still expects to sign an initial trade agreement with China next month, but no alternate location had yet been set for Xi and Trump to meet.
The US Fed announced its widely expected decision to lower the target range for the federal funds rate by 25 basis points to 1.5% and 1.75%, but dropped a previous reference in its statement to "act as appropriate" to support the economic expansion, which could signal the Fed may hold off on future rate cuts.
Meanwhile, the Bank of Japan announced Thursday that it would be keeping monetary policy steady, but signaled in its forward guidance a readiness to cut rates if required.
Factory activity in China shrank for the sixth straight month in October, official data showed. The official Purchasing Managers' Index (PMI) was at 49.3 in October, dipping from 49.8 in September.
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