Sensex extends profitable run to 10th day; banking, monetary shares spurt

Mumbai, October 14

Equity indices defied gravity for the tenth session on the trot on Wednesday as a fag-end rally in banking and financial counters helped offset profit-booking in IT stocks.

The 30-share BSE Sensex opened on a weak note but gained ground in the last hour of trade to finish at 40,794.74, up 169.23 points or 0.42 per cent.

Similarly, the broader NSE Nifty rose 36.55 points or 0.31 per cent to 11,971.05.

Bajaj Finserv led the Sensex gainers chart, spurting 3.87 per cent, followed by Bajaj Finance, ICICI Bank, IndusInd Bank, SBI, Tata Steel, Axis Bank, L&T and HDFC.

On the other hand, NTPC, ONGC, PowerGrid, Tech Mahindra, Infosys, ITC and HCL Tech were among the major laggards, dropping up to 4.35 per cent.

Announcing its results post market hours, Infosys said its consolidated net profit grew by 20.5 per cent to Rs 4,845 crore for the September quarter, while it has raised revenue forecast to 2-3 per cent for FY21.

“Initially, the benchmark indices opened in red on the back of unsupportive global cues. Besides, the news of IMF lowering its growth forecast for India for the second time in four months was also weighing on the sentiment. However, a sudden surge mainly in the banking and financial counters changed the tone and helped Nifty to pare all its losses and close near 11,970 levels. On the flip side, IT, oil and gas and power traded subdued.

“The rebound is on the expected lines and we expect further surge ahead. Participants should keep a close watch on earnings announcements as well as global markets for cues. We reiterate our view to maintain extra caution in the selection of trades due to limited participation and prevailing volatility,” said Ajit Mishra, VP – Research, Religare Broking.

BSE finance, bankex, realty, capital goods and basic materials indices rose up to 1.68 per cent, while utilities, power, IT, teck, oil and gas, healthcare and auto closed lower.

Broader BSE midcap index climbed 0.50 per cent, while the smallcap gauge ended in the red.

Global equities were mixed as investors monitored the news flow around the COVID-19 vaccine trials and stimulus negotiations in the US.

In Asia, bourses in Hong Kong and Seoul ended higher, while Shanghai and Tokyo closed with losses.

Stock exchanges in Europe were trading on a positive note in early deals.

Meanwhile, international oil benchmark Brent crude was trading 0.09 per cent lower at USD 42.41 per barrel.

In the forex market, the rupee edged 4 paise higher to close at 73.31 against the US dollar. PTI 


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