Market trades firm; Nifty hovers near 18,200 mark

The benchmark indices firmed up in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, gained 155.64 points or 0.26% at 61,122.69. The Nifty 50 index rose 66.85 points or 0.37% at 18,192.25.

Reliance Industries (up 1.11%), Kotak Mahindra Bank (up 2.77%) and Housing Development Finance corporation (HDFC) (up 0.66%) boosted the indices.

The broader market was trading firm. The S&P BSE Mid-Cap index gained 1.09%. The S&P BSE Small-Cap index rose 1.53%.

Sellers outnumbered buyers. On the BSE, 2,051 shares rose and 1,132 shares fell. A total of 169 shares were unchanged.

Gainers & Losers:

Tata Motors (up 3.67%), SBI Life Insurance Company (up 3.13%) Nestle India (up 2.89%) and Grasim Industries (up 2.61%) were major gainers in Nifty 50 index.

IndusInd Bank (down 2.78%), ICICI Bank (down 1.72%), Adani Ports & Special Economic Zones (APSEZ) (down 1.50%) and Power Grid Corporation of India (down 0.98%) were major losers in Nifty 50 index.

Nifty Results Today:

Axis Bank (down 1.54%), Bajaj Finance (up 0.92%), Kotak Mahindra Bank (up 2.77%) and Cipla (up 0.12%) will announce their quarterly results today.

Earnings Impact:

Canara Bank skid 2.87%. The state-run bank`s net profit surged 199.86% to Rs 1,332.61 crore on 2.59% increase in total income to Rs 21,331.49 crore in Q2 September 2021 over Q2 September 2020. The bank`s profit before tax (PBT) jumped 260.13% to Rs 2,243.41 crore in Q2 September 2021 over Q2 September 2020. The bank`s provisions and contingencies (excluding tax provisions) fell 15.45% to Rs 3,360.23 crore in Q2 September 2021 over Q2 September 2020.

The bank`s gross non-performing assets (NPAs) stood at Rs 57,853.09 crore as on 30 September 2021 as against Rs 58,215.46 crore as on 30 June 2021 and Rs 53,437.92 crore as on 30 September 2020. The ratio of gross NPAs to gross advances stood at 8.42% as on 30 September 2021 as against 8.50% as on 30 June 2021 and 8.23% as on 30 September 2020. The ratio of net NPAs to net advances stood at 3.21% as on 30 September 2021 as against 3.46% as on 30 June 2021 and 3.42% as on 30 September 2020.

Tech Mahindra rallied 2.62% after the IT company reported a 25.8% increase in consolidated net profit to Rs 1,338.70 crore on a 16.1% rise in revenue from operations to Rs 10,881.30 crore in Q2 FY22 over Q2 FY21. Consolidated net profit fell 1.1% and revenue from operations rose 6.7% in Q2 FY22 over Q1 FY22.

HDFC Asset Management Company slipped 1.20%. The asset management company reported a 2% rise in net profit to Rs 344.50 crore on a 19% increase in revenue from operations to Rs 542.30 crore in Q2 FY22 over Q2 FY21. Total expenses rose by 37% Y-o-Y to Rs 146.90 crore in the second quarter, due to sharp increases in employee benefit expenses (up 49% Y-o-Y) and other expenses (up 39% Y-o-Y). The company said that in Q2 FY22, employee benefit expenses includes non-cash charge of Rs 16.673 crore towards amortised cost of outstanding employee stock options. The increase in other expenses is mainly on account of increase in new fund offer expense, business promotion expense and CSR expense. The company reported a pre-tax profit of Rs 461.50 crore in Q2 FY22 as against a pre-tax profit of Rs 462.80 crore in Q2 FY21.

Stocks in Spotlight:

Shares of IDFC soared 7.06% and IDFC First Bank surged 5.38%. IDFC on Monday informed the exchanges that IDFC Financial Holding Company, a wholly owned subsidiary of IDFC, has submitted a letter to IDFC First Bank with respect to unlocking value for shareholders of IDFC.

Zee Entertainment Enterprises was up 0.48%. The company informed that its board meeting on Wednesday, 27 October 2021, to consider Q2 results has been cancelled due to lack of quorum. The next date of meeting will be duly informed with fresh notice, it added.

Global Markets:

European stocks rallied across the board on Tuesday, 26 October 2021, as positive corporate earnings offered a tailwind to global markets.

Asian stocks were mixed as rising Covid cases in China dented investors` sentiment. China placed a city of four million under lockdown on Tuesday in a bid to stamp out a domestic coronavi rus spike, with residents told not to leave home except in emergencies. The restrictions came as China reported 29 new domestic infections -- including six cases in Lanzhou, the provincial capital of northwestern province Gansu.

Meanwhile, South Korea`s economy grew at a slower pace in the third quarter, as robust exports were offset by weak domestic demand and construction and facility investments, data from the Bank of Korea showed on Tuesday. Gross domestic product (GDP) grew a seasonally adjusted 0.3% in the September quarter from three months earlier, slowing from 0.8% growth in the preceding quarter.

Powered by Capital Market - Live News