Oct 25

Daily Market Commentary : 24th Oct. 2016

The Indian equity market spent the entire day in a narrow range after the recent slide and ended higher on Monday. The first half was comparatively better; thanks to buying in select index majors, but profit taking in last two hours completely reversed the intra-day gains and pushed index to neutral line. Amidst all, stock specific move continued as usual where banking, financial and energy counters attracted maximum attention from the traders. Nifty closed with a gain of 16 points at 8,709, while BSE Sensex ended with a gain of 102 points at 28,179.

On the global front, Asian stocks closed on a higher note. China’s Shanghai Composite closed 1.21% higher. Latest data showed that the Nikkei Flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in October from September’s 50.4, improving at the sharpest rate in nine months. Japan’s Nikkei and Hong Kong’s Hang Seng ended in green.

European stocks were mixed ahead of monetary policy decision from the Bank of England. The FTSE 100 and DAX were up by 1% each, while CAC 40 is trading marginally higher.

Mindtree tanked 4.8%. The consolidated net profit declined by 23.2% QoQ to Rs. 94.8 cr against Rs. 123.5 cr of last quarter. The consolidated net revenue for the quarter declined by 2.4% QoQ to Rs 1295 cr as the company faced headwinds in all of its business verticals.

Inox Wind gained 1%. ReNew Power Ventures has issued a repeat order to Inox Wind for a 50 MW wind power project to be executed in the State of Gujarat in India. ReNew Power is India’s leading Independent Power Producer of clean energy with more than 3,000 MW of commissioned and under construction assets.

Wipro tanked 3%. The company posted 8.2% year-on-year drop in net profit at Rs 2,070 crore for the second quarter of this financial ended September 30, 2016.

Axis Bank slipped 1% to Rs 521.30. The bank will announce its Q2 numbers today.

Punj Lloyd zoomed 1.3%. Punj Lloyd’s wholly owned subsidiary – Punj Lloyd Infrastructure (PLIL) has executed definitive agreements with India Infrastructure Fund II (a SEBI registered Category I Alternative Investment Fund represented by its investment manager IDFC Alternatives Limited) to divest three operating solar projects aggregating to 45 MW located in Punjab and Rajasthan subject to customary approvals and other conditions precedent.

Mandhana Industries spurted 1.5% after the company has received in-principle approval from Bank of Baroda (Lead bank) for supplication for Strategic Debt Restructuring (SDR) of the company and it is awaiting the advice and approval of the members banks (Term loan and working capital lenders).

GMR Infrastructure gained 2.2% to Rs 13.36. GMR Infrastructure’s airport arm has raised $522.60 million by selling bonds to international investors, as per media reports.

The rupee was trading higher by 4 paise at 66.84 per US dollar.

Out of 1,557 stocks traded on the NSE, 639 declined and 855 advanced today.

Top 5 Nifty Gainers: Sun Pharma (1.01%), Maruti Suzuki (0.72%), Cipla (0.69%), Axis Bank (0.67%) and Hero Motocorp (0.49%)

Top 5 Nifty Losers: Tata Steel (-2.73%), Hind. Unilever (-1.61%), GAIL (-1.49%), TCS (-1.12%) and HDFC Bank (-1.06%)

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