The markets have been under pressure and ended lower for the second day on profit booking after US Federal Reserve casts doubt over a December rate cut. The Nifty closed around the 25,700 mark, while the Sensex shut shop down over 450 points. Financials, NTPC and Eternal see deep cut in today’s session. However, key index stocks like BEL and Shriram Finance stand out.
That said, most sectors closed in the red. Powell’s hawkish statement and US-China trade development did not meet expectations and have made investors cautious.
Speaking on the overall trade as it panned out through the day, Vinod Nair, Head of Research, Geojit Investments said, “Indian equities ended decisively lower after a volatile session, as investors booked profits amid mixed corporate earnings and cautious global sentiment in the backdrop of a strong greenback. After a strong rally, the markets are in a profit-booking mode as a large part of the economic developments are factored in. Buy on dips is expected to stay as a trading strategy as optimism remains solid on a QoQ basis.”
Q2 Earnings impact
A look at some stocks that saw a sharp reaction after the earnings announcement.
BEL share price jumped 4%. The company reported a consolidated net profit of Rs 1,287.16 crore in Q2FY26, up 17.79%. Revenue from operations stood at Rs 5,792.09 crore.
The share price of Shriram Finance ended 2% higher after reporting a bigger-than-expected second-quarter profit on steady lending growth in its micro, small and medium enterprise (MSME) and commercial vehicle sectors. The non-banking finance company’s (NBFC) Q2FY26 profit rose 11.39% YoY.
Maruti Share price, in comparison, was under pressure after second-quarter profit fell below estimates as higher input costs and expenses weighed on margins. The Brezza SUV manufacturer’s profit came in below street estimates. All eyes are on the October sales numbers due to be announced on November 1.
Rupee under pressure
The currency too ended on a weak note this Friday. The rupee dropped 0.08% versus the US dollar to 88.77 but managed to hold above its all-time low on the back of intermittent dollar sales by state-run banks, which also helped the currency end the month on a quiet note.
Nifty: Eye on key technical levels
In terms of levels, the Nifty failed to close above the crucial 26,000 level yet again for this week. What’s the indication for index levels to watch out for? Ajit Mishra – SVP, Research, Religare Broking said, “Technically, the Nifty is approaching a crucial support zone around 25,600, which aligns with its 20-day exponential moving average (DEMA). Sustaining above this level will be essential to preserve the prevailing positive bias; otherwise, a deeper correction cannot be ruled out. We continue to advise investors to use this consolidation phase to accumulate fundamentally strong names on declines, with a focus on sectors such as metals, autos, banking, and energy.”