Domestic markets were subdued in the mid-morning trade as investors parsed through earnings, buying into stocks such as Kotak Mahindra Bank that beat results while hitting those such as MindTree that missed estimates.
Indian benchmark indices trip after opening marginally higher as selling pressure increases. BSE Sensex fell down over 90 points trading below 31,900 while NSE Nifty fell below 9,900 level. Domestic markets were subdued in the mid-morning trade as investors parsed through earnings, buying into stocks such as Kotak Mahindra Bank that beat results while hitting those such as MindTree that missed estimates. The 30-share barometer was trading down 0.28% at 31,875 points and the broader Nifty 50 fell was trading down 0.32% at 9,867.7 points.
The top gainers on the benchmark Sensex were Axis Bank (up 3.07%), ONGC (up 1.47%), Cipla (up 1.02%), Mahindra & Mahindra (up 0.48%), L&T (up 0.40%) while the shares of Tata Steel (down 2.36%), Infosys (down 1.02%), Hero MotoCorp (down 0.92%), NTPC (0.92%), Sun Pharma (down 0.9%) drag the index. Wipro and Reliance Industries are among the companies expected to announce results later in the day, with shares in each up as much as 1%. Private sector lender Kotak Mahindra Bank Ltd rose as much as 2.2% after posting a 23% jump in its first-quarter net profit, helped by higher interest and fee income.
The benchmark index for the central public sector enterprises Nifty CPSE zoomed 1% on Thursday after the Union Cabinet approval of the proposed merger of ONGC and HPCL. All of the ten shares of Nifty CPSE traded in green in the rally led by Engineers India which rose more than 4% to the day’s high of Rs 164.5. ONGC shares rose, surging 2.9% to Rs 167.8 as the exemption from open offer to buy up to 20% of HPCL’s equity share from the public was seen as a positive for ONGC. HPCL shares fell on the news, tumbling as much as 5% to Rs 364.75 in the opening trade on BSE today, reflecting the shareholders’ disappointment.
IT company MindTree Ltd fell as much as 4.3% to its lowest since May 5, after it reported a 1.6% drop in June-quarter profit. State-run lender Canara Bank fell as much as 6% after it posted a lower-than-expected first-quarter profit due to higher provisions for bad loans.
Most Asian shares rose, propped up by global stocks at a record high on strong US corporate earnings. The Bank of Japan held its policy rate unchanged, which had a bearing. On Wednesday Wall Street Shares jumped to fresh records on higher oil prices, better-than- expected housing data and mostly solid earnings reports. All three major US stock indices finished at new records, with the Dow Jones Industrial Average rising 0.3% to 21,640.75.The S&P 500 gained 0.5% to end at 2,473.83, while the tech-rich Nasdaq advanced 0.6% to 6,385.04.