NIFTY CONSOLIDATES AFTER 3-DAY SPRINT; 10100 CONTINUES TO BE IMMEDIATE SUPPORT
Dow and S & P 500 gained 0.2% and 0.1% respectively while Nadaq ended flat with Dow breaking above 23000 for the first time on intraday basis.
UnitedHealth reported a stronger-than-expected quarterly profit and raised its full-year adjusted earnings forecas. Johnson & Johnson also reported better-than-expected quarterly results. Goldman Sachs' earnings and revenue beat Wall Street expectation; the stock however fell 2.6%. Netflix posted better-than-expected earnings and revenue, but stock fell 1.6%.
European markets, except a 0.4% higher Spain, fell upto 0.4%.
It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex lost 24 points to settle at 32609 while Nifty finished at 10234, up 4 points. BSE mid-cap and small-cap indices however outperformed, rising 0.4% and 0.5% respectively. BSE Telecom index soared 2.8%, becoming top gainer among the sectoral indices, followed by 0.7% higher Oil & Gas index.
FIIs net sold stocks and stock futures worth Rs 484 cr and 8 cr but net bought index futures worth Rs 258 cr. DIIs were net buyers to the tune of Rs 809 cr.
Rupee depreciated 31 paise to end at 65.03/$.
Axis Bank reported a 35.5% rise in net profit backed by lower provisions towards the bad loans (dip by 13%), fee income growth (12% rise) and stable loan growth (16%). However, the gross NPAs, including the divergences, jumped 67% to Rs 27,402 crore from Rs 16,379 crore and net NPAs nearly doubled to Rs 14,052 crore from Rs 7761 crore a year ago. Non-watchlist slippages surged to Rs 6505 cr, up from 2722 cr q-o-q.
Wipro's consolidated net profit increased 5.5% sequentially to Rs 2,191.7 crore, driven by fall in total expenses, lower finance cost and higher other income. Consolidated evenue from operations fell 1.4% to Rs 13,468.7 cr. IT services business grew by 1.1%. IT services revenues in dollar terms grew by 2.1% to USD 2,013.5 million and constant currency growth was at 0.3%. For Q3FY18, Wipro expects revenues from IT services business to be in the range of USD 2,014-2,054 million, a growth of 0-2% over Q2. Revenues largely matched expectations but constant currency growth and Q3 guidance missed estimate.
Bajaj Auto reported better-than-expected numbers. Net profit fell 0.6% y-o-y dip to Rs 1194 cr, hit by slow sales growth, lower other income and higher raw material cost. Revenue rose 2% to Rs 6566 cr. Operating profit was up 0.2% at Rs 1297 cr but margin contracted by 170 bps to 19.7%.
Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points lower start for our market.
After rising more than 250 points in 3 sessions, Nifty consolidated yesterday by closing 4 points higher after trading in a narrow range and is set to open lower today.
10100 continues to be immediate support on the hourly chart with the stop-loss of which, existing longs should be held on to. 10310 is the immediate target above which 10600-10650 would be the next major target to eye.
Ultratech will report its quarterly earnings today.