Currently, the market is witnessing two important trends: Selling pressure in the broader market and continuous selling by FIIs in the market. FIIs have sold Rs 10,300 crore worth equity in the last five days in the cash market.
“If this FII selling sustains that would be a major drag on the market. The 8 per cent correction in the mid-cap space is not getting reflected in the large-cap indices since stocks like RIL,
and HDFC have been resilient. And there are no valuation concerns in these stocks, unlike the froth that has been accumulating in many stocks in the mid and small-cap space. The run-up in many micro-caps and penny stocks has been irrational and likely to end in grief for many retail investors chasing these ‘cats and dogs’,” Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
How are bluechips doing
At 9.30 am, the BSE Sensex was trading 360 points or 0.59 per cent, higher at 61,327 amid gains in RIL, HDFC twins and Tech Mahindra. The Nifty50 gained 120.35 points, or 0.66 per cent, to 18,246.
Tech Mahindra was the best performing stock in the 50-pack index as it soared 5 per cent to Rs 1,607.7 on reporting a 26 per cent year-on-year (YoY) increase in September quarter net profit at Rs 1,338.7 crore. It expects to maintain the trajectory.
It was followed by Tata Motors, Tata Steel, SBI Life, Bajaj Finance, Infosys, Bharti Airtel, State Bank of India, Wipro and Bajaj Finserv which added 2-3 per cent each.
On the flip side, investors booked profit in ICICI Bank and Axis Bank, which tanked a per cent each. Power Grid, , Dr Reddys Labs, Coal India and Indian Oil were among other losers in the Nifty50 pack.
Broader markets
Broader market indices edged higher and were outperforming the headline peers in morning trade. BSE Smallcap index was up 1.35 per cent while BSE Midcap Index rose 1.22 per cent. The broadest index BSE 500 gained 0.75 per cent.
In stock-specific moves, tyre maker CEAT tanked 10 per cent during early trade after the company reported a 77 per cent YoY decline in consolidated net profit at Rs 42.28 crore for the second quarter ended September 30, impacted by higher input costs.
Jagran Prakashan zoomed over 14 per cent to Rs 69.90 as the publisher of Hindi daily Dainik Jagran reported a sixfold jump in its consolidated net profit at Rs 60.89 crore for the quarter ended in September 2021.
Centrum Capital advanced 9 per cent to Rs 42.75 after the first branch of Unity Small Finance Bank is likely to operate shortly. It is a joint venture between Centrum Group and Bharatpe.
In the broader markets, Hikal, Godawari Power and Ispat, IDFC, Tata Power, Quick Heal Technologies, KEI Industries, Apollo Pipes, IRCTC and Orient Cement were the top gainers.
On the other hand, DB Realty, RVNL, Cantabil Retail Oil India, HDFC Asset Management Company, JSW Energy, Butterfly Gandhimathi Appliances and
declined the most during the early trade.
Things to watch: Q2 earnings
Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Ambuja Cements, Cipla, Torrent Pharma, PI Industries, ABB India, Canara Bank,
, Dr Lal Pathlabs, Nippon Life India Asset Management, Central Bank of India, Sanofi, and Zensar Technologies are among the companies that will announce their September quarter results today.
