Closing Bell: Nifty ends Oct series below 11,700, Sensex falls 172 pts on weak global cues

Taking Stock: Nifty ends below 11,700 on expiry day

Long buildup was seen in Godrej Properties, SRF and Berger Paints, while short buildup was seen in PFC, L&T and Escorts.... Read More

Airline company InterGlobe Aviation (IndiGo) on October 29 said its loss widened to Rs 1,194.8 crore in Q2 FY21, higher than the loss of Rs 1,062 crore posted in the corresponding quarter of the previous financial year.

However, the number was better-than-expected as a CNBC-TV18 poll had estimated the loss to the tune of Rs 1,897 crore.

The company's revenue for the said quarter came at Rs 2,741 crore against Rs 8,105.2 crore. This, too, was above the CNBC-TV18 poll of Rs 2,678 crore

Market inched further lower and lost nearly half a percent amid muted global cues. After the gap down start, the benchmark oscillated in a range till the end and settled closer to the lower band. Volatility remained on the higher side, thanks to unwinding and rollover of October month derivatives contracts. Finally, the Nifty index settled at 11,671 levels; down by 0.5%. On sector front, Auto, FMCG and Capital goods dragged the indices lower.

We reiterate cautious stance as there is high uncertainty in global markets due to recent surge in COVID cases. A decline below 11,600 in Nifty would pave way for further slide. In case of a rebound, 11,750 would act as a hurdle. Traders should limit their leveraged positions and maintain a balanced approach.

As expected the Indian stock market has turned its focus from Q2 result driven rally to international developments as global market is worsening. Markets across the world are volatile because of rising corona cases impacting the recovery of economy and ambiguities over the US election and stimulus package.

Additionally, today Indian indices ended weak following October monthly F&O expiry. This weakness can stay for the short-term, a reversal can happen as strong fiscal and monetary stimulus is expected from governments and central banks in the world to overcome the crisis.

Jitters on the street ahead of the US elections and dimming hopes of a stimulus plan from the US administration in near term have led to the recent rise in Dollar Index from a multi-week low. Adding to that, uncertainty due to the second wave of COVID-19 cases hitting the US and Europe has also dented investor sentiments, leading to sell off in global as well as domestic equities.

All of these factors have played their part in pushing the rupee lower after a long period of consolidation around the 73-72.80 zone, wherein it witnessed a depreciation of around 0.60% in today’s trade.

Going ahead, eyes would be on the ECB policy meeting as well the US Q3 GDP data. Amid a shaky landscape, rupee still looks to find some breather around 74.50 mark. However if that is also taken out, 75 mark also looks likely on the cards.

As we approach the Presidential Elections in the US, markets today anxiously awaits earnings of the BIG-4 in the US. While the Nifty arrested its fall today with select stocks in Cement & Banking pulling their weight, the broader markets saw buying across select names in Pharma & Sugar.

The continuation of pandemic in absence of a vaccine is creating a havoc and is playing out in fx market. The fear that economic conditions are going to get worse before they get better, is keeping the dollar strong against EM currencies. Adding to this mood is uncertainty of the US presidential election outcome. So, next week the chances of USDINR trading above 74 are higher and expect the spot pair to trade within 73.50-74.50.

The markets have kept above the 11650 level upon closing. We need to see if we break that tomorrow. Should that happen, we would be commencing the November series on a negative note as the Nifty can then go down to 11400-11450 levels. On the upside, we have a stiff resistance at 11900-11950.

Benchmark indices continued the sell-off on the second day on October 29 with Nifty ends October F&O series below 11700 on the back of weak global cues.

At close, the Sensex was down 172.61 points or 0.43% at 39,749.85, and the Nifty was down 58.80 points or 0.50% at 11,670.80. About 1019 shares have advanced, 1542 shares declined, and 170 shares are unchanged.

Asian Paints, UltraTech Cement, Shree Cements, HCL Tech and Kotak Mahindra Bank were among major gainers on the Nifty, while losers were L&T, Titan Company, ONGC, Adani Ports and Tata Motors.

Except IT and energy, all other sectoral indices ended lower led by FMCG, pharma, metal and auto. BSE Samllcap index shed 0.5 percent.

Zydus Cadila has received tentative approval from the USFDA to market Dapagliflozin Tablets, 5 mg and 10 mg (US RLD: Farxiga Tablets). Dapagliflozin is a sodium-glucose cotransporter 2 (SGLT2) inhibitor indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus and to reduce the risk of hospitalization for heart failure in adults with type 2 diabetes mellitus and established cardiovascular disease or multiple cardiovascular risk factors.

Rupee ended lower near 74.05 on broad sell off in capital markets globally, giving some strength to US Dollar Index. Weak stock strong dollar along with month-end oil importers demand supported USDINR. 74.55-74.65 can be on cards in coming sessions.

Dr. Reddy’s Laboratories announced its partnership with Biotechnology Industry Research Assistance Council (BIRAC), Department of Biotechnology (DBT), Government of India, for advisory support on clinical trials of Sputnik V vaccine in India

The company's Q2 net profit jumped 81.8% YoY at Rs 326 crore against Rs 179.3 crore and revenue was up 10.2% at Rs 2,459.5 crore versus Rs 2,232.65 crore, reported CNBC-TV18.

Earnings before interest, tax, depreciation and amortization (EBITDA) was up 79.2% at Rs 421.9 crore versus Rs 235.5 crore and margin was up at 17.1% versus 10.55%.