Market Activity: Share indices were slightly down after opening flat amid mixed cues from overseas markets.At 09.30 AM Sensex was at 20900.42, down 32.06 points or 0.1% and Nifty was at 6286.55,
down 15.00 points or 0.2%. Metal and technology shares slipped on profit booking. Hindalco Industries fell nearly 3% and was the worst hit on Nifty as its Jul-Sep earnings disappointed.
Bharti Airtel too traded off highs as its Jul-Sep Consolidated net profit missed street estimates. IFCI and select fertiliser shares also slipped on profit sales. However, Tata Motors, up nearly 5% on strong earnings, was the top gainer on the Nifty.
The Nifty November futures contract was at a 26-point premium to the spot, and open interest was up 8% at 27.07 mn. At 01.50 PM Nifty was at 6287.95, down 13.60 points or 0.2% from Tuesday. Nifty November was at 6314.00, down 19.45 points. Tata Motors advanced on build-up of long positions following strong Jul-Sep consolidated earnings, while traders unwound long positions in Hindalco Industries and Bharti Airtel due to disappointing numbers from the two.
"Power Grid has more or less stabilised at current levels but the discount of futures to cash will remain as there is speculation the issue will get subscribed at Rs 90 so going short at Rs 100-102 is being used as a hedge with easy returns," Call writing was seen at 6300 and 6400 strike prices while put writing persisted at 6200.
Tata Motors, Reliance Industries, State Bank of India, Power Grid Corp of India, Tata Steel, Bharti Airtel, and IDBI were the most active November contracts.
Key share indices closed marginally lower after a choppy session amid weak European cues, while mid- and small-cap shares witnessed relatively strong demand. Sensex ended at 20875.71, down 56.77 points or 0.3%, and Nifty closed at 6275.70, down 25.85 points or 0.4%.
The BSE Small-cap and Mid-cap indices rose 0.9% and 0.3%, respectively. Sugar shares ended up 1-3% in anticipation of government approval to export 2 mn tn of the commodity. Other stocks that posted gains today included Alok Industries, Mercator Lines, Apollo Tyres, Hindustan Motors, 3i Infotech, and PNB Gilts, up 3-10%. Auto shares were among the gainers today, with Tata Motors ending up 2.5%, albeit off highs on profit sales. Mahindra & Mahindra, up 3.2%, was the top gainer on Nifty.
Bharat Petroleum Corp ended up nearly 2% while DLF ended down 0.1% ahead of their Jul-Sep earnings today. Dismal results weighed on Bharti Airtel and Hindalco Industries, which slipped 2% and 1%, respectively. Ambuja Cements, down over 2% on profit sales, was the worst hit on Nifty.