Trading Week Begins Flat, Concerns Over Crude Oil As Conflict Intensifies
All eyes are on HDFC Bank's Q2 results, which are eagerly anticipated as they report merged figures for the first time.
Indian equities opened low on Monday, as global markets fell and crude oil prices rose due to concerns over increasing conflict in the Middle East.
The NSE Nifty 50 index declined 0.20 per cent to 19,711.85, while the S&P BSE Sensex was down 0.25 per cent to 66,117.20.
Coal India and HCL tech traded as the market gainers, whereas Nestle and Divis Lab were the index losers. Fin Nifty and Bank Nifty lead the Nifty benchmark losses, falling more than 0.5 per cent each. Ten of the thirteen indices were down.
Meanwhile, the domestically focused small and mid-caps opened 0.3 per cent and 0.1 per cent higher, respectively.
"In this dynamic financial market, all eyes are on HDFC Bank's Q2 results, which are eagerly anticipated as they report merged figures for the first time. Expectations are for moderated margins and a potential 40 per cent to 45 per cent YoY profit increase,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Zomato, Tata Motors, and Bajaj Finance are expected to perform well in the near term, said Tapse.
Dalmia Bharat reported 162 per cent year-on-year (YoY) profit jump, while Avenue Supermarts experienced a 9 per cent YoY drop in Q2 PAT (profit after tax) despite a substantial 19 per cent revenue increase.
Key Q2 results, including HDFC Bank, CEAT, and Jio Financial Services, are expected today, followed by Bajaj Finance, ICICI Prudential Life, and VST Industries on Tuesday 17 October.
Among Specific Stocks, Avenue Supermarts fell 2.55 per cent after the firm reported decline in consolidated profit in September quarter.
Tata Motors traded flat after its proposal to sell stake in unit Tata Technologies to TPG fund and an endowment trust, valuing it at USD 2 billion.
Delta Corp fell more than 10 per cent after the firm's unit received notification of insufficiency tax payment of Rs 62.37 billion.
“Given the absence of clear trends in both the Nifty and Bank Nifty, it is advisable for market participants to exercise caution and adopt a more selective, stock-specific approach to their investments. This approach can lead to well-informed and strategic investment decisions in a potentially volatile market,” said Mandar Bhojane, Equity Research Analyst, Choice Broking.
