The slump in heavyweight stocks of Bharti Infratel, Yes Bank, Hindustan Petroleum Corporation, Bharti Airtel, Indian Oil Corporation, State Bank of India, and Reliance Industries led the key equity indices to end flat.
Indian stock markets ended the week on a dull note on Friday after making fresh intraday highs in a range-bound trading session. BSE Sensex closed 10.09 points or 0.03% down at 33,157.22 points while NSE Nifty settled 20.75 points or 0.20% lower at 10,323.05 points. The slump in heavyweight stocks of Bharti Infratel, Yes Bank, Hindustan Petroleum Corporation, Bharti Airtel, Indian Oil Corporation, State Bank of India, and Reliance Industries led the key equity indices to end flat.
The shares of Adani Ports, Bajaj Finance, ONGC, Sun Pharma, Cipla, Tata Motors, Dr Reddy’s, UPL advanced up to 4.37%. Bharti Infratel (down 7.99%) and Yes Bank (down 7.1%) were the biggest losers on Nifty followed by Indian Oil Corporation – down 5.38%, Hindustan Petroleum Corporation – 5.29%, Bharti Airtel – 4.66%, SBI – 3.09%, Wipro – 2.32% and RIL – 1.74%. Despite a dull trade amid the earnings season, three Nifty stocks hit all-time high including Adani Ports, Bajaj Auto and Maruti Suzuki while GAIL, Tata Steel and Vedanta ended at 52-week highs.
India’s largest car-maker Maruti Suzuki reported a rise of 3% in the net profit for July-September quarter of the current fiscal. Following the better-than-expected second-quarter results the stock of Maruti Suzuki gained 2.05% to hit a record high of Rs 8,242.4 before closing up 0.24% at Rs 8096 on BSE. Maruti Suzuki (India) posted 3.4% rise in net profit to Rs 2,484.3 crore for the quarter ended 30 September 2017 as compared to Rs 2,401.5 crore in the corresponding period of last year. Shares of Maruti Suzuki have returned about 50% since the beginning of 2017 so far while Sensex and Nifty have grown in a range of 24-25% in the same period.
The momentum in Indian equity markets seemed to have paused as investors are keenly awaiting the second-quarter results. At this point of time when the key equity indices Sensex and Nifty are hitting consecutive record highs, market participants believe that the earnings report card will provide a justification to the stock markets. Recently domestic equities surged massively after the Narendra Modi government announced a mega plan of Rs 2.11 lakh crore to recapitalise the NPA-laden PSU banks.
After a two-day extended push provided by the government’s booster package Indian equities are trading flat, though, Sensex and Nifty hit a fresh record high today. The benchmark Sensex jumped 137.45 points to hit the all-time high of 33,284.58 points while the broader Nifty 50 added 22.35 points to mark the lifetime high of 10,366.15 points. All PSU bank stocks which surged up to 48% on Wednesday following the mega recap partially pared the gains with the Nifty PSU Bank index losing about 4.1% today and every stock ending in red.