Sensex snaps four-session falling streak; ICICI Bank soars 11 pc post robust Q2 show

Mumbai, October 25

The Sensex and Nifty found firmer ground on Monday after a four-session losing streak, boosted by a rally in ICICI Bank which has posted record profits for the September quarter.

Recovering from a weak start, the 30-share BSE Sensex ended 145.43 points or 0.24 per cent higher at 60,967.05. Similarly, the broader NSE Nifty advanced 10.50 points or 0.06 per cent to 18,125.40.

ICICI Bank hogged the limelight in the Sensex pack, soaring 10.80 per cent, after the private sector lender on Saturday reported its highest-ever standalone quarterly profit at Rs 5,511 crore for the September quarter on the back of healthy loan growth across verticals and a fall in bad loans.

Axis Bank, Dr Reddy’s, SBI, M&M, Tech Mahindra, Sun Pharma and HUL were the other winners, climbing up to 3.45 per cent.

On the other hand, Bajaj Finserv, Bajaj Auto, HCL Tech, Asian Paints, Maruti, Nestle and IndusInd Bank were among the laggards, slipping as much as 3.04 per cent.

The market breadth was negative, with 22 out of the 30 Sensex constituents closing in the red.

“Market opened weak, however strong support from banking stocks helped to balance the bearish pressure and lifted the indices to trade on a flat note. Improved asset quality and business growth based on key Q2 earnings aided the banking sector to improve the outlook leading to outperformance. 

“Global markets were steady in anticipation of robust quarter earnings in the backdrop of inflation fears and possible tightening of monetary policy in the next policies,” said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking, said, “We expect the banking pack to remain in focus as Axis Bank and Kotak Bank will report their numbers on October 26. On the index front, Nifty should hold 17,950 levels for any rebound, else profit taking would resume.”       The scheduled monthly expiry will keep the choppiness high across the board. Amid all, participants should continue with a cautious approach until we see some concrete sign of trend resumption, he added.

Sectorally, BSE bankex and finance rallied up to 2.30 per cent, while realty, auto, consumer durables and utilities indices notched up losses.

Broader BSE midcap and smallcap gauges slumped up to 1.76 per cent. Global equities remained in the positive zone ahead of key corporate results.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended with gains, while Tokyo was in the red.

Stock exchanges in Europe were trading largely positive in the afternoon session.

Meanwhile, international oil benchmark Brent crude rose 0.73 per cent to USD 85.26 per barrel.

The rupee declined by 18 paise to close at 75.08 against the US currency on Monday due to a spike in crude oil prices and a stronger greenback in the overseas markets. PTI

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