Volatile markets end flat ahead of Fed outcome, July F&O expiry

Benchmark share indices ended flat after hitting 15-month highs intra-day as investors turned cautious ahead of the US Fed meet outcome later today and expiry of July derivative contracts on Thursday.

The S&P BSE Sensex closed 48 points higher at 28,024 and the Nifty50 settled 25 points higher at 8,616.

In the broader markets, the BSE Midcap and Smallcap indices ended up 0.5%-0.6%. Market breadth ended weak with 1346 losers and 1318 gainers on the BSE.

"The Market tried to regain some of its weight by the end of the day ahead the outcome of the ongoing FOMC meet and stimulus measures by BoJ.

"The FED is likely to hold the rate, however the comments will have an influential impact on the liquidity standpoint and for any chance of an increase in the interest rate by Dec-2016.

"Additionally, the market is close to the F&O expiry which may induce investors to stand on the sidelines from the volatility," said Vinod Nair, Head of Fundamental Research at Geojit BNP Paribas Financial Services.

Market participant will await US Fed comments for clues on policy direction on interest rates. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015.

Foreign portfolio investors were net buyers in equities worth Rs 671 crore on Tuesday, as per provisional data released by the stock exchanges.

GLOBAL MARKETS

Most Asian markets ended higher with the exception of China. Share in Japan rose after media reports indicated that Prime Minister Shinzo Abe today said his government would line-up a stimulus package of $265 to boost the struggling economy.

The benchmark Nikkei ended up 1.7% while China's Shanghai Composite ended nearly 2% lower amid reports that financial authorities plan to impose restrictions on wealth-management products.

STOCKS

Bharti Airtel and Asian Paints are scheduled to unveil Q1 June 2016 results later today.

Dr Reddy’s Labs slumped over 9% after its quarterly profit slumped 75%, hurt by fierce competition in its largest market, the United States.

Bajaj Auto ended flat after standalone net profit for June 2016 was marginally higher at Rs 978 crore compared with Rs 957 crore in the same quarter last fiscal.

Total Income was up 3.5% at Rs 6,089 crore against Rs 5,881 crore in June 2015 quarter.

HDFC ended up 1.5% after the mortage lender reported 37% rise in net profit at Rs 1871 crore in the quarter ended June 2016 compared with Rs 1361 crore in the same quarter last fiscal.

Total income was 19% higher at Rs 8382 crore compared with Rs 7,019 crore in June 2015 quarter.

Maruti Suzuki ended nearly 2% higher.

The company reported a 23% jump in its net profit for the quarter ended June 30, 2016.

The net profit at Rs 1,486 crore was also the result of other factors like favourable Rupee-Yen rate and higher non-operating income.

Axis Bank eased 1% after rising nearly 3% in the previous session. The private lender reported 21% year on year (YoY) decline in net profit at Rs 1,556 crore for the quarter ended June 30, 2016 (Q1FY17), due to higher provisioning for bad loans.

German carmaker Volkswagen is in talks with Tata Motors to partner for a small car development programme, a German business magazine Manager Magazin has reported. Shares of Tata Motors closed 1.2% higher.

Yes Bank came off its day's high to end flat. The private lender posted 33% growth in net profit at Rs 732 crore for the quarter ended June 2016 while total income was up 25% at Rs 4762 crore compared to the same quarter last fiscal.

Lupin ended over 1% higher after the company said it has received tentative approval for generic Lexiva Tablets, 700 mg from USFDA.

Among others, Bharti Infratel gained 5% after the company reported 71% growth in consolidated net profit at Rs 756 crore for the first quarter ended June 30, 2016 compared with Rs 442 crore in the same quarter last fiscal.

Ingersoll-Rand (India) surged nearly 5% after net profit surged 119% to Rs 15.8 crore while net sales rose 7% to Rs 149.3 crore for the quarter ended June 2016 compared to the same quarter last year.

Image: The Bombay Stock Exchange. Photograph: Reuters