Banks steer Indian shares' U-turn after pressure from dull earnings, foreign outflows
Updates to close
By Bharath Rajeswaran and Hritam Mukherjee
Oct 29 (Reuters) -Indian shares ended higher on Tuesday, as gains in banking stocks helped the indexes reverse course in the final hour of trading after having spentthe day under pressure due to some tepid earnings reports and persistent foreign selling.
The NSE Nifty 50 .NSEI rose 0.52% to 24,466.85, while BSE Sensex .BSESN gained 0.45% to 80,369.03. They had dropped about 0.7% each earlier before the U-turn sparked a second straight day of gains. They snapped a six-session losing streak on Monday.
"The drop earlier in the session after a rebound on Monday indicates that buyers and sellers remain indecisive about the short-term market trend," said Akshay Chinchalkar, head of research at Axis Securities.
"Volatility is expected to rise in the next few sessions with all the upcoming event-related risks such as U.S. non-farm payrolls on Friday and U.S. presidential elections on Nov. 5."
The Nifty 50 has dropped about 7% from a record high hit on Sept. 27, in part asforeign investors have pulled money from stocks for the past21 sessions.
On the day, themore domestically-focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose 0.8% and 0.9%, respectively.
The heavyweight financials .NIFTYFIN rose 2.1%, while banks .NSEBANK also gained 2.1%.
ICICI Bank ICBK.NS, the third-heaviest Nifty member, advanced 3%, leading the market for a second straight session after its quarterly profit beat estimates.
Federal Bank FED.NS climbed 8.5% after posting a bigger quarterly profit. Indian Bank INBA.NS also posted a higher profit, leading the stock 5.4% higher, adding to its 10.6% jump in the previous session.
On the flip side, Maruti Suzuki MRTI.NSslid 3.8% after posting its slowest quarterly revenue growth in nearly three years. That dragged auto stocks .NIFTYAUTO down 1.6%.
Bharti Airtel BRTI.NS lost 1.6% after the telecom carrier reported a smaller-than-expected second-quarter profit.
State-owned refiner Indian Oil IOC.NS lost 2% after posting a smaller September-quarter profit.
Reporting by Bharath Rajeswaran and Hritam Mukherjee in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Varun H K and Savio D'Souza
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
