The News International Team
The market saw a stellar ending as investors eye outcome of Federal Reserve meeting and its stance on interest rates.
Ahead of October F&O expiry tomorrow, the Nifty ended tad below 8100-mark, up 62.85 points at 8090.45 while the Sensex was up 217.35 points at 27098.17. About 1589 shares advanced, 1374 shares declined, and 115 shares were unchanged.
The US Federal Reserve’s two-day policy review meeting will be over later tonight. At its last meeting in September, the Fed had decided to maintain its main rate at a record low of between zero and 0.25 percent for ‘a considerable period of time’ after its asset purchase program ends. The central bank is expected to declare the end of that quantitative easing programme when it releases its statement tonight.
According to Christopher Palmer, Henderson Global Investors will stick to announcing the end of quantitative easing (QE) and in fact there might be a shift in language towards other instruments to maintain liquidity without directly purchasing bonds which the markets are likely to be interested in.
He thinks the global economy is ready for new approaches and the consensus has now started to move towards where liquidity injected by bond purchases is not having much impact or at least incremental impact in the US.
Palmer says India is unlikely to be impacted negatively from anything that Fed does in the next six months. India will be impacted only by domestic inflation and global crude prices, but at present both are trending down, he added.
The dollar was under light selling pressure and major government bond yields were marginally lower, as currency and fixed income markets anticipated a soothing message from the Fed when it ends its two-day policy meeting later in the day.
Losers and gainers
Metal stocks were on buyers’ radar with gainers like Hindalco and Tata Steel. Buoyed up good earnings, Sesa Sterlite was up 2 percent. The Vedanta Resources Group company’s net profit declined 31.7 percent (up 23.6 percent quarter-on-quarter) to Rs 1,658 crore in July-September quarter from Rs 2,429 crore in the year-ago period. Profit was supported by forex gain and lower finance cost during the quarter.
Total income from operations slipped 22.7 percent (up 13.5 percent sequentially) to Rs 19,448 crore in the quarter ended September 2014 compared to Rs 25,170 crore in same quarter last year.
Tata Motors, Infosys and Bajaj Auto were other major gainers in the Sensex. The losers include NTPC, Sun Pharma, Bharti Airtel and SBI.
Dragged by disappointing Q2 results, Dr Reddy fell 1 percent. The drug maker’s second quarter consolidated net profit fell 16.8 percent to Rs 574 crore compared to Rs 690.2 crore in the year-ago period.
Among the midcaps, OBC and PI Industries struggled in trade post announcing Q2 earnings. OBC lost over 4 percent on concerns of weak asset quality. Reeling under results impact was Jubilant Life (down 11 percent) as Q2 loss widened.
Pipavav Defence, Risa International and Westlife were other midcap laggards.
Meanwhile SRF jumped 20 percent as Sept quarter net grew 61 percent. Top midcap gainers include BF Utilities, Max India, Sobha Developer and AIA Engineering.