If today’s lows hold, Nifty may be headed for 8,150
We had mentioned in Friday’s closing report that Nifty, Sensex are weak and that while Nifty may bounce back during the week, the rallies will be met by selling until Nifty reclaims 8,200. The major indices in the Indian stock markets closed lower than Friday’s close. The trends in the major indices are given in the table below:
A slowdown in manufacturing activity, uncertainty over Bihar election results and heightened chances of a US rate hike depressed the Indian stock markets and the major indices closed lower than last week. Furthermore, falling Asian markets on the back of weak Chinese factory data caused the Indian indices to a downward trend.
The latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction due to a slower increase in new orders. The PMI was at a 22-month low of 50.7 in October 2015. China's PMI came in at 49.8 in October, unchanged from September, signalling stagnation in manufacturing.
Reliance Capital Ltd on Monday reported a rise of 15% in its consolidated net profit for the second quarter of the current fiscal. It had posted a consolidated net profit of Rs250 crore for the quarter ended 30 September 2015, up from Rs217 crore posted during the corresponding quarter of last year. The company's consolidated total income went up by 13% at Rs2,361 crore for the period under review as against Rs2,084 crore in the corresponding previous period. The earnings per share logged an 11% increase at Rs9.9During the quarter under review, Reliance Capital's subsidiaries Reliance Life Insurance and Reliance General Insurance posted a net profit of Rs15 crore and Rs30 crore respectively.
Indian Bank reported that it has earned Rs1,207.56 crore from treasury operations the last quarter and posted a net profit of Rs369.31 crore. The bank's profit for the second quarter rose to Rs359.31 crore this fiscal - up from Rs314.33 crore posted during the corresponding period the previous year. According to him, the bank made a conscious decision of not growing its loan book size while the focus was on quality advances and lowering high-cost deposits. The Indian rupee weakened in the day's trade. It ended lower by 32 paise at 65.59 to a US dollar from its previous close of 65.27 to a greenback.
The foreign institutional investors (FIIs) were net sellers in the day's trade, whereas the domestic institutional investors (DIIs) were net buyers. According to data with stock exchanges, the FIIs sold stocks worth Rs272.67 crore, while the DIIs picked up stocks worth Rs145.38 crore.
Sector-wise, S&P BSE capital goods index plunged by 157.34 points, healthcare index receded by 130.52 points and metal index plummeted by 93.15 points.
On the other hand, the S&P BSE consumer goods index surged by 62.75 points, oil and gas index gained by 27.37 points and information technology (IT) index rose by 26.57 points.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: