Closing Bell: Sensex falls 148 pts, Nifty settles below 11,900; metal stocks shine

Taking Stock: Market breaks 4-day winning streak as Nifty settles below 11,900

The broader markets - S&P BSE midcap index was up 0.54 percent while the smallcap index rose 0.85 percent- outperformed benchmark indices.... Read More

Ajit Mishra, VP - Research, Religare Broking:

Markets traded lackluster in a narrow range and ended lower amidst weak cues. Initially, feeble global cues were weighing on the sentiment but failed to trigger any major fall. Consequently, the Nifty index settled at 11,896; down by 0.4%. In between, movement in the broader market kept the participants busy wherein both Midcap and Smallcap index ended higher by 0.6% and 1% respectively. On the sector front, Telecom, Capital Goods and Metals were the top gainers whereas IT, Banking and Healthcare ended with losses.

Markets are currently seeing time-wise correction after a phenomenal recovery and we feel it’s healthy for the markets before the next directional move. However, traders are facing tough times due to recent consolidation in the index while stocks are witnessing volatile swings due to the prevailing earnings season and mixed global cues. We suggest limiting naked leveraged positions in such a scenario and preferring hedge positions. Investors, on the other hand, should use this phase to accumulate quality stocks on dips.

The short term trend of Nifty is range bound with minor weak bias. There is a possibility of continuation of range bound action around 11850-11950 levels by next session. Immediate supports to be watched at 11800 and crucial upside hurdle is placed at 12025.

Markets today exhibited volatility which the closing probably did not reflect as investors shopped across midcap cement counters as well as pharma stocks. Few PSU stocks including state owned PSU names witnessed value hunting today.

We closed within the current range of the Nifty: 11650-12050. The markets, marked by low volumes, moved in a tight range of about 100 points. It is just a matter of a few days when the index will either get past 12050 to achieve 12300 or break 11650 and achieve 11450.

Benchmark indices broke the 4-day winning streak and ended lower with Nifty settled below 11900 dragged by the pharma, IT and banking names.

At close, the Sensex was down 148.82 points or 0.37% at 40558.49, and the Nifty was down 41.20 points or 0.35% at 11896.50. About 1412 shares have advanced, 1188 shares declined, and 159 shares are unchanged.

IndusInd Bank, Hero MotoCorp, Infosys, ICICI Bank and Cipla were among major losers on the Nifty, while gainers included Bharti Airtel, Tata Motors, IOC, NTPC and Bajaj Finance.

Among sectors, pharma, IT and bank ended in the red, while buying witnessed in the energy, metal and infra sectors. BSE Midcap and Smallcap indices added 0.5-0.8 percent.

The investment lined up in development of water infrastructure and allied projects augurs well for DI pipes demand, which is likely to grow at a steady pace in the medium term to longer term horizon. The government had constituted the Jal Shakti Mantralaya whose primary objective is to work with states to ensure Har Ghar Jal (piped water supply) to all rural households by 2024 under the Jal Jeevan Mission, auguring well for DI pipes demand.

We value the stock at 6x FY22E EV/EBITDA and arrive at a target price of Rs 675. Hence, we assign a buy rating to the stock. Key risk to our call is a significant increase in raw material costs and lower-than-expected increase in demand for DI pipes.

The company's consolidated net profit rose 1.2% YoY at Rs 851.9 crore versus Rs 842.1 crore and revenue was up 5.9% at Rs 5,350.2 crore versus Rs 5,051 crore, reported CNBC-TV18.

Benchmark indices recovered some intraday losses but still trading in the red with Nifty around 11900.

At 15:10 IST, the Sensex was down 169.61 points or 0.42% at 40537.70, and the Nifty was down 43.10 points or 0.36% at 11894.60. About 1298 shares have advanced, 1169 shares declined, and 122 shares are unchanged.

The board on October 30 would consider the proposal for delegation of authority for borrowings including borrowings upto Rs 20,000 crore during a financial year through private placement of bonds/ debentures in one or more tranches, from time to time, within the overall borrowing limit of Rs 1,65,000 crore approved by shareholders at the last Annual General Meeting.

Dolat Capital has maintained positive stance on Bajaj Auto given 1) improving outlook for domestic and export 2W segments owing to increasing preference for personal mobility, 2) operating efficiency and volume recovery to support EBITDA margin and 3) strong cash reserves.

: Net profit went up 9.6 percent at Rs 99.2 crore against Rs 90.5 crore (YoY). Revenue went down 4.3 percent at Rs 1,193 crore against Rs 1,247.5 crore (YoY). EBITDA grew 11.7 percent at Rs 175 crore against Rs 156.4 crore (YoY). EBITDA margin stood at 14.6 percent against 12.5 percent (YoY).

Rupee closes at 73.53 per US dollar against October 21 close of 73.58 per US dollar.