The Sensex and Nifty finished almost unchanged on Tuesday as investors waited for tomorrow’s US Fed decision and Jio’s listing. Beneath the flat close, small and mid-sized stocks had one of their strongest days this month.
The Sensex ended Tuesday down 8.08 points at 73,598.67, and the Nifty 50 slipped 3.45 points to 22,749.75. Both were almost exactly where they started, on a day that included the monthly expiry of derivatives contracts and the wait for tomorrow’s Federal Reserve decision.
The benchmarks hid a very different picture in the rest of the market. The Nifty Midcap index rose about 1%, and the Nifty Smallcap index gained 2.7%, adding to its 1.4% rise on Monday. Market breadth, the number of rising stocks compared with falling ones, strongly favoured the gainers.
Pharma, media and realty up; IT and oil companies down
Gains were spread across several sectors. The Nifty Media index rose 3.6%, while realty and pharma each gained about 2%. Consumer durables also did well. Pharma has been a defensive choice through the oil shock, because drugmakers earn much of their revenue in dollars and depend less on domestic demand. Realty stocks rebounded after falling sharply this month on worries about interest rates.
Large companies in IT, oil and gas, and private banking held back the main indices. IT stocks fell for a second day as investors weighed last week’s growth guidance cut from Infosys and the uncertain outlook for global technology spending.
Oil and the Fed
Two global factors kept investors cautious. Brent crude stayed close to a six-month high near $116 a barrel for much of the session, though prices eased later on hopes that diplomacy over Iran might make progress. The US Federal Reserve announces its decision tomorrow. Goldman Sachs expects the Fed to hold rates this week but raise them in December. Any sign of a more aggressive stance would strengthen the dollar and weigh on emerging markets, including India.
Results after the close
Several major companies reported after trading ended:
- Bajaj Auto reported record figures. Standalone net profit rose 35% to ₹3,354 crore on revenue up 34% to ₹20,003 crore. Exports grew about 40%, and electric vehicle sales boosted the domestic business. The EBITDA margin widened to 20.9%. Consolidated profit rose 59% to ₹3,384 crore.
- Maruti Suzuki reported a 27% fall in net profit to ₹2,415 crore. Its full results will show how much of the drop came from higher costs, the shift of festive sales into October, or other factors.
- ACC, the Adani-owned cement maker, reported a 92% fall in consolidated profit to ₹93 crore, the fourth cement company this month whose earnings have been hit hard. Its capacity rose by 3.4 million tonnes a year.
Larsen & Toubro, Cipla, Tata Steel and others are due to report later today.
Among other companies, Indian Overseas Bank said it plans to raise ₹5,000 crore through a qualified institutional placement. That would reduce the government’s stake to about 86%. Apollo Micro Systems rose 8.5% after strong results.
Tomorrow
Wednesday brings two major events. Jio Platforms lists on the BSE and NSE after its record 22-times-subscribed IPO, with the grey market pointing to a premium of around 22%. The Fed’s decision follows late in the Indian evening. Together they will set the market’s direction for the rest of the week.
About The Author
