Quarterly results bring cushion to stock market from Middle East shock

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By S Jha

New Delhi, October 19: Indices closed in the red, losing further grounds on Thursday, after a day-long sideways session. Bank Nifty after staying most resilient dropped over 130 points while Nifty lost another 46 odd points.

Chartists claim that Nifty is now hovering in support zone, while Bank Nifty is seen by the market participants to be oversold. With the street keeping fingers crossed on the ongoing tension in the Middle East, the investors appear to be guarded.

Rising crude oil prices and also the bond yields along with the hawkish Fed commentary gave ammunitions to bears to pounce on bulls, who sought to retrieve the indices during the day amid hopes that Israel allowing humanitarian aid to Gaza may calm down the nerves in the Middle East.

While the broader market is facing the heat because of the global cues, the quarterly results are seen to be giving fresh legs to the scrips with better numbers to gallop. The two-wheelers’ stocks have been trending for over a month now, extending gains for almost six months.

Bajaj Auto had come out with a stellar set of numbers yesterday after the market hour, beating the expectations of the street by decent distance. The street rewarded the stock as it zoomed over six per cent even while the broader market was bleeding. Tracking its performance, Hero Motors also went trending to gain almost four per cent. Eicher Motors, which has come out with one of its kind buyback offer, was also in the green.

While the IT firms have largely disappointed with their numbers so far, LT Mindtree came out as an exception and the street rewarded the scrip also in a big way, as it almost gained six per cent in the day. It may be noted that smallcap IT firms such as Nucleus Software, Newgen Software, Cyient, and a few more are trending even in bearish market sentiment on the street.

The FMCG counters were buzzing in the day’s session led by Nestle, which delivered handsome set of numbers. The heavyweight scrip gained close to four per cent, which is once in blue moon case for the stock. Nestle has also been buzzing for few weeks after the company unveiled plans to split the shares.