Market Wrap Podcast, Oct 14: Here’s all that happened in the markets today

The domestic benchmark indices extended the record rally in the sixth consecutive session with Sensex and Nifty ending at fresh record closing high. The market posted a record close in all four sessions this week. The BSE 30-pack index ended at 61,305, up 569 points, after touching a new high of 61,353 in intraday deals. The NSE 50-share index, meanwhile, surged to a new peak of 18,350, before ending 177 points higher at 18,338.

Adani Ports, Wipro, Grasim, ITC, and HDFC Bank were among major gainers on the Nifty, while losers were Coal India, Eicher Motors, Tata Motors, HCL Tech, and TCS. On the sectoral front, barring, auto, all other sectoral indices ended in the green, with infra, IT, realty, PSU Bank, power, and metal indices were up a percent each.

In the broader markets, the BSE MidCap index closed 0.54 percent higher while the BSE SmallCap index added 0.46 percent. Overall, market breadth firmly favoured the bulls with 1,719 stocks advancing on the BSE compared with 1,637 stocks that declined. The BSE market-cap stood at Rs 272.8 trillion by the close.

Coming to stock-specific moves, HDFC Bank was one of the top gainers on the benchmarks, rising to a record high level of Rs 1,690. The stock ended 2.9 percent higher ahead of the Q2 earnings, which are slated to be detailed on Saturday, October 16. Supported by healthy loan growth, stable interest margins, and lower operating expenses, private sector lender HDFC Bank is expected to report mid-teen growth in net profit for the July-September quarter.

Shares of ITC too hit a fresh 52-week high of Rs 258 in Thursday’s intra-day trade on the back of heavy volumes. Most of the brokerage houses are bullish on ITC as they believe the company’s cigarette business will fully recover with the aggressive vaccination drive and reduction in Covid-19 cases. The stock closed 2.85 percent higher.

Further, the stocks of Wipro (up 5 percent), Mindtree (up 8 percent) & Infosys (up 0.3 percent) after a better-than-expected second quarter. However, TCS’ downward trend continued following a weak set of Q2 earnings. That said, Avenue Supermart gained more than 4 percent ahead of its Q2 earnings on Saturday.

IRCTC was the top midcap gainer, with the stock rising 11 percent to close at a record high level of Rs 5,485. On the other hand, Coal India was the top Nifty loser with the stock falling 2.9 percent, as the company has reportedly asked subsidiaries to refrain from conducting e-auction of coal for non-power use. Meanwhile, Tata Group stocks saw profit booking following major gains on Thursday.

The stock of Apollo Pipes rose 1.15 percent higher after the company said the board will consider the issue of bonus shares, along with the results for the quarter ended September on October 22. India Cements too gained 8 percent on reports that the companies are expected to hike prices.

The Share Market will remain closed on Friday on account of Dussehra. HDFC Bank, Avenue Supermarts, Aarnav Fashions, Artson Engineering, Infomedia Press, Sangam (India), and VR Woodart will release their September 2021 quarter earnings on October 16.

Next week, the markets will continue to be driven by the corporate earnings for the quarter ended September 2021. Companies such as UltraTech Cement, HUL, Nestle India, Asian Paints, JSW Steel, HDFC Life Insurance, Tata Consumer Products, and ICICI Bank will detail their Q2FY22 numbers next week.

According to Rohit Singre, Senior Technical Analyst at LKP Securities, now immediate supports are coming near 18,250 followed by 18,170 zone and any dip near the mentioned supports zone will be again a fresh buying opportunity for the overall targets of 18,500 zone and immediate hurdle is coming near the 18,400-18,500 zone.

Lastly, global markets, stock-specific moves as well as news related to Covid-19 will be among other major triggers for investors.