Sensex ends in red on F&O Expiry, Fed decision; metals, oil tumble

10 out of 12 sectoral indices closed in red with BSE FMCG and Power indices losing 1% each

Markets finished lower for the fourth straight session following the expiry of October derivative contracts with bluechips taking a beating after US Federal Reserve rekindled hopes of an interest rate hike in the month of December.  

The Sensex closed 202 points lower to end 26,838 below the crucial level of 27,000 and the Nifty slipped 59 points to end blow the important level of 8,150 at 8,112.

In the broader market, BSE Midcap and Smallcap indices lost 0.4% each.

MARKET OUTLOOK  

“The October expiry turned out to be a better expiry compared to the previous one. Nifty gained approx 3% this expiry, and a lot of midcaps and large caps stocks came back to action.

The short term charts though are once again in a bit of a oversold point, so there could be chance that Nifty may try to give some short term rally till 8,200 levels in the next few days.

However, the key events next week the outcome of Bihar elections could provide extreme volatility to our markets and could decide the trend for November series as well,” said Kunal Bothra, Head- Advisory, LKP Securities.  

“The Auto stocks picked up some significant action this expiry, and I believe if the strength persists in them then we could see a lot of stocks which were in a downtrend since last one year picking up pace again. IT and Pharma are continuing to be the defensives and till the time the market remains in a correction phase, we could see some stock specific positive price action in the same,” he added.  

RUPEE  

The rupee has depreciated by 23 paise to 65.14 against the US dollar on strong demand for the US currency from importers after the US Federal Reserve indicated it may hike interest rates in December.  

STOCK TRENDS  

On the sectoral front, BSE FMCG, Bankex, Metal, Oil& Gas and Power indices lost sheen and ended lower up to 1.2%. However, BSE Consumer Durables outperformed the peers and closed 0.4% up.  

RIL gained 0.5% after Reliance Jio Infocomm decided to raise Rs 3,000 crore by issuing secured redeemable non-convertible debentures on private placement basis.  

Sun Pharma has initiated a recall of a little over a million boxes of Loratadine, an anti-allergic drug, from the US market after checks revealed the tablets were ‘super potent’ and ‘out of specification’. The stock fell 2.4%.  

ONGC Videsh has decided to double its investments in Africa from the current $8 billion over the next three years. The stock ended with marginal losses.  

Hero Motocorp may post growth in excess of 20% during the month of Octobe on the back of strong sales during the Navratri and Dusshera festive season. The stock gained 0.5%.  

Dr Reddy’s Lab gained 2.6% ahead of the quarterly results due today.  

Wiith the ensuing festive season, consumer goods such as air-conditioners, washing machines, televisions, jewellery and other home appliances are likely to remain in demand. BSE Consumer Durables outperformed the peers and closed1% higher.  

RESULT CAPSULE  

Yes Bank closed 2% higher after the bank reported a better-than-expected 26.5% year-on-year (y-o-y) growth in net profit at Rs 610 crore for the quarter ended September 30, 2015 (Q2FY16), on back of strong operational income. 

Local search engine Just Dial reported a 47.03% surge in its net profit at Rs 46.30 crore for the quarter ended September 30, on rise in income. However, shares of Just Dial lost 11%.  

NTPC posted net profit of Rs 2898.28 crore up 39.9% on 5.25% rise in total income to Rs 18173.90 crore in Q2 September 2015 over Q2 September 2014. However, the stock lost over 1%.  

Bharat Forge dipped 6% to Rs 815 after the company reported a lower than expected net profit and revenues for the quarter ended September 30, 2015 (Q2FY16).  

MRF today reported a 45.38% surge in its net profit at Rs 460.73 crore for the quarter ended September 30. Shares of MRF lost over 1%.  

Jet Airways posted a consolidated net profit of Rs 83 crore in the second quarter of FY16 compared with a loss of Rs 43 crore in the same period last year on the back of passenger and revenue growth and lower fuel costs. However, the stock lost 2%  

Dabur India’s net profit has increased by 18.2 per cent during the July-September quarter of this financial year to Rs 341 crore from Rs 289 crore in the same quarter the previous year owing to declining raw material prices. The stock gained 0.4%.  

FMCG major Colgate Palmolive India reported a 21.10% rise in its net profit to Rs 156.93 crore for the second quarter ended September 30. The stock lost 0.4%.