▲ Nifty: 11,934 (+0.03%) ▲ Sensex: 40,625 (+0.08%)
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The market movement today indicates a state of indecision after a rally seen in the last two weeks. Banking shares pulled the market downward, and had it not been for late buying in Reliance Industries, the Nifty50 could have ended in the negative. Among the index stocks, HCL Tech (+4%), Infosys (+2.4%) and Kotak Bank (+2.1%) were the top gainers whereas, Cipla (-3.5%), Titan (-2.5%) and Adani ports (-2.5%) were the top losers.
Here are the top stories of the day.
HCL continues upward march ahead of Q2 results
HCL Tech hit yet another record high ahead of its Q2 results, which will be declared this Friday (16 October). In its mid-quarter update in September, the company had mentioned that it expects quarter-on-quarter revenue growth to exceed 3.5% on constant currency terms. Further, it also said that the order pipeline looked healthy across verticals and geographies. In fact, this upbeat outlook has triggered buying interest in other IT stocks as well, which were moving sideways for nearly two months until mid-September. TCS, Infosys, Wipro and HCL Tech have risen 19%, 23%, 28% and 25%, respectively since HCL’s mid-quarter update.
Cement stocks gain amid a tepid market
It seems that investors are turning their attention to this cement sector. The optimism rides on hopes of recovery in demand after the disruption during the pandemic. The market expects a better demand scenario in the northern, central and eastern regions thanks to pent-up demand and improved rural demand. Today, most major cement stocks closed on a positive note, with gains ranging from 0.3% to 3.4%, especially in the backdrop of a lacklustre market. Meanwhile, JK Cement—a north-India-focused player—hit a new lifetime high today and has already gained about 13% this month. The company recently expanded its cement production capacity by 4.2 million tonnes per annum, which is expected to help long-term volume growth.
Siti Networks default weighs on Zee Entertainment
Siti Networks, a cable TV service provider and one of the subsidiaries of Zee Entertainment, recently defaulted on nearly ₹400 crore worth of loans. Siti’s shares are down about 26% this month, and the trickle-down effect was seen on Zee. As per reports, the default could result in a ₹200 crore loss for Zee. The company could lose ₹120 crore as corporate guarantor and another ₹81.2 crore in the form of subscription receivables. Zee shares were down 3.7% today and have fallen nearly 13% in October.
Closing bell
The non-stop rally of the past two weeks has halted, and it seems that investors are taking cognisance of the higher-than-expected inflation figures. This was evident in the banking shares, with the Nifty Bank index falling 0.9%. The stock-specific, result-related activity is likely to continue for a few more weeks. This trend was seen in the IT and cement stocks, which were on a roll in an otherwise muted market.