Share Market Update: Sensex ends 92 points higher, Nifty at 11,471; Federal Bank slips 6% post results

Q2 earnings for today

Listed companies that are scheduled to post their second quarterly figues today are namely  Mindtree, Federal Bank, Hathway Cable, DB Corporation

Market Today

Share Market LIVE: Domestic equity indices Sensex and Nifty are trading marginally higher today, amid earnings like Mindtree, Federal Bank, Hathway Cable, DB Corporation scheduled for the day. Sensex has risen 18 points to 38, 354 and Nifty50 tardes 9 points higher at 11, 447mark. 

Rupee opens lower

Rupee opens mildly lower at 71.59 per dollar as compared to Tuesday's close of 71.54 per USD, amid rising crude oil prices and increasing demand for the US dollar vis-a-vis other currencies overseas. Forex traders said muted opening in domestic equities also weighed on the domestic currency. At the interbank foreign exchange, the rupee opened at 71.60 then fell to 71.71 against the US dollar, showing a decline of 17 paise over its previous closing. The Indian rupee on Tuesday had closed at 71.54 against the US dollar.

IMF cuts India's FY20 GDP growth forecast to 6.1% from 7%

The International Monetary Fund (IMF) has cut India's GDP growth forecast to 6.1 per cent for the current fiscal from its earlier projection of 7 per cent. IMF has also reduced growth forecast for FY21 by 20 bps to 7.2%.

"India's economy decelerated further in the second quarter, held back by sector-specific weaknesses in the automobile sector and real estate as well as lingering uncertainty about the health of nonbank financial companies," IMF said in its bi-annual World Economic Outlook.

IMF cuts India's FY20 GDP growth forecast to 6.1% from 7%

Market Update

By the first few hours of trade, Sensex and Nifty have gained momentum from flat to positive bias. Sensex has risen 100 points to 38,607 and Nifty50 tardes 33 points higher at 11,461mark. On the sectoral front, except auto and conumption indices, all the other scetors trade today in green, with highest gains registered in media, realty rising over 1.5% and banking indices trading 1% up.  

Wipro rises over 3.3% post Q2FY20 results

Shares of Wipro, the fourth largest IT company, rose 3.3% intraday to Rs 251.8 on the BSE,post the second qaurterly earnings. The stock has gained 5.63% in the last 6 days. A total of 3.73 lakh shares and 98.47 lakh shares are currently changing hands on the counters of BSE and NSE. The volume traded today has risen above 5, 10 and 30-day average volume recorded for the stock on both the bourses. On Tuesday, Wipro reported 35.82 per cent year-on-year (Y-o-Y) growth in consolidated net profit at Rs 2,561.20 crore for the second quarter ended September 30, 2019. "The Bengaluru-based technology firm had posted consolidated net profit of Rs 1,885.60 crore in the same quarter last year," Wipro said in a filing to the Bombay Stock Exchange. The profit was reported Rs 2,387.60 crore in the June quarter. Traditionally the second quarter is positive for the company.  

US-China trade deal

On the global front, China on Tuesday said that it was on the "same page" with the US on trade as it confirmed that the two countries are likely to sign a "phase one agreement" soon to end their trade war. Beijing also confirmed that it has stepped up purchase of American agricultural produce in large quantities in a bid to address the trade deficit with the US, which last year climbed to USD 539 billion.

Technical Update

Option data suggests a trading range for Nifty50  in between 11300 to 11600 zone.

FII positive for the 3rd session

Net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bullish for the third consecutive session since last Friday with net buying logged at Rs 436.02 crore from Indian equities. Similarly domestic institutional investors (DIIs) bought Rs 929.39 crore on Tuesday.

FIIs make a strong comeback

FIIs have been positive for last three consecutive days, having bought a total of INR 2000 cr, according to provisional exchange data provided on the BSE.

Brent crude rises

On the negative side, Crude oil benchmark, Brent Futures, rose 0.24 per cent to USD 58.88 per barrel and later to $59 per barrel after IMF cut global growth forecast.  IMF has cut global GDP forecast to 3% (lowest in last 10 years). IMF has also lowered India’s FY20 GDP growth forecast to 6.1% from 7% earlier.

Global Market Update

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were trading on a positive note, while those in Shanghai were in the red. On the Signaporean Exchange, SGX Nifty was trading up by 40 points. Exchanges on Wall Street ended significantly higher on Tuesday amid positive news on the US-China trade front and hopes of a Brexit deal this week. On the Wall street, DOW Jones index ended at three week high, led by the quarterly results of JP Morgan chase & Wells Fargo. Asian markets are trading in green. Although, US Futures (Dow Jones) trades at 26,956, down 0.17%. European market closed in the green after two EU officials said negotiators in Brussels are closing in on a draft Brexit deal that could lead to a breakthrough before the end of Tuesday.  

BPCL gains over 6%

BPCL shares listed among top gainers on Wednesday and climbed over 6% intraday after media reports suggested that Saudi Aramco is eyeing a buy out of 53.29% Indian government’s stake in the state-owned Maharatna oil and gas company. Reacting to the latest news for BPCL's privatisation, the stock price rose 2.8% with the opening bell against the previous close of Rs 490.25 on the BSE. Later the stock price climbed 6.13% to the day's high of Rs 520.35. The stock trades 30 points lower than its 52-week high recorded on October 4, 2019. Media reports suggested that the Saudi oil giant Aramco, that is currently evaluating various planned investments in India, is in an early stage of consideration to the proposed BPCL bid, including its possible partnership with Reliance India Ltd.  

Sensex Pack gainers and losers

Top gainers in the Sensex pack included Bajaj Finance, Yes Bank, HDFC Bank, RIL, Tata Motors, Bajaj Auto, Tata Steel and ONGC, rising up to 3%.On the other hand, Vedanta, PowerGrid, ITC, Hero MotoCorp, M&M, Asian Paints, L&T and TCS fell up to 1.50%.

IRCTC shares decline 2% over profit-booking

After two sessions of positive momentum, the overvalued share-price of Indian Railway Catering and Tourism Corporation (IRCTC) finally gave up gains on the back of profit-booking by investors and traded in the red territory for the day. The IRCTC stock gained momentum in the initial hour and rose 1% to the intraday high of Rs 720.55, against the last close of Rs 713.10. Although, later the stock of Rs 10 face value lost ground and traded 2.03% lower at day's low of Rs 698.60 on the BSE. As per the market depth data available on the BSE, there is 91% selling against the 9% bidders buying the stock at this value. The newly-listed company’s market capitalisation on Wednesday stood at Rs 11,280 crore, lower by Rs 328 crore than its first-day closing value of Rs 11,658 crore.  

Market turns bearish

Share Market LIVE: Domestic equity indices Sensex and Nifty turned bearish by the afternoon session on Wednesday to trade marginally lower, backed by selling pressure in banking, FMCG and metal stocks. Sensex currently trades 50 points lower at 38,431 and Nifty traded  11 points lower at 11,417 level.

Sun Pharma gains 1%

Sun Pharma shares gained 1% today after the Pharmaceutical informed the exchanges that one of its wholly owned subsidiary launched Drizalma Sprinkle (duloxetine delayed-release capsules) in the US for oral use.  

MCX shares rally 9% on strong September quarter results

  Shares of Multi Commodity Exchange of India rallied 9% intraday after the company posted over two-fold jump in year-on -year net profit to Rs 71.75 crore, as compared to Rs 36 crore during the corresponding period last fiscal on the back of higher volume and jump in gold prices. MCX shares gained 5.25% with the opening bell today at Rs 1070 on the BSE, against the previous closing of Rs 1016.65. Later the stock rose 8.98% to the day's high of Rs 1107.70. MCX reported over two-fold jump in net profit to Rs 71.75 crore for the quarter. Its net profit stood at Rs 35.93 crore in the year-ago period. Total income including other income increased 55% year-on-year to Rs 144.53 crore.  

Sharp surge in Mindtree

Mindtree shares are trading 3.47% higher at Rs 750 on the BSE,  ahead of its second quarter earnings, scheduled to release today.

Federal Bank share price drops 6% post-earnings

Shares of Federal Bank dropped over 6% as compared to the previous close of Rs 84.50 on the Bombay Stock Exchange, despite the private lender reporting a year-on-year (YoY) jump of 51.58% in its consolidated net profit to Rs 425.34 crore on Wednesday. Federal bank shares rose higher in the early trading hours and rose 2.71% to the day's high of Rs 86.8. Although post the earnings release, the stock price traded in the red and fell 6.4% to the intraday low of Rs 79.05 on the BSE, against the previous closing of Rs 84.50. The stock price today trades merely 2.65 points higher than the 52-week low of Rs 76.40, recorded on October 16, 2018.