Markets End Flat, Oct Series Gains 1%

Amid volatile trades, the Indian markets closed on a flat note today. The Oct F&O series closed flat with less than 1% gains.

The markets remained directionless with their motion towards both positive and negative ends. Trades were also volatile as many companies reported their earnings.

The Asian markets closed on a mixed note today. Hang Seng closed with a modest 0.2% gains and the Japanese Nikkei gained over 1%. The positive bias remained intact due to depreciation in the Yen as well as on growing expectations that Bank of Japan would further ease the monetary policy next week. The Shanghai market, however, closed with 0.7% losses. Earlier data showed that China’s PMI grew to 49.1 in Oct 2012 from 47.9 in Sept, indicating that the economy is on the path to recovery. The markets in Shanghai declined due to the corporate earnings.

The European markets continue to trade strongly. The CAC and DAX are leading with over 0.6% gains at this time. FTSE was also up 0.4% at the time of writing this note.

Among the sectoral indices, Auto was the top gainer after M&M reported its earnings. Besides, the positive sentiment is intact on Capital Goods after L&T exceeded the market's expectations in its Sept quarter results. While most of the indices remained flat in trades, Realty saw a decline of 1.35%. The Healthcare index also saw a decline of 0.36%.

Of the Sensex stocks, M&M emerged as a top gainer, up by 3.6%. The company reported its quarterly results, in which its sales grew by 31% to Rs 9659 crore from Rs 7360, beating the market's expectations. The net profit also rose by 22.3% to Rs 902 crore. Hero MotoCorp, which reported a 27% decline in the net profits, also saw its stock rising by 2.3% today. Another Sensex company Sterlite Industries rallied 1.5% after its strong Q2 results. L&T also gained 0.67% today, while BHEL saw a 0.3% price appreciation. Dr. Reddy’s Labs, on the other hand, saw a decline of 2%. Sun Pharma and Cipla were also in the losers list.

In other shares, infra and power company Lanco Infra tumbled 2.6% after it was downgraded by CRISIL. According to media reports, the company also defaulted on a liability of Rs 250 crore.

Lupin saw 2% gains after its Q2FY13 results, wherein the company posted record sales and profits. Though its margins were impacted, the net profit was higher than expected.

Private sector lender Kotak Mahindra Bank also reported its results. Its net profit grew by 8% to Rs 280 crore. The bank's gross non-performing assets (NPAs) remained unchanged at 1.61% on a YoY basis, while the net NPAs rose from 0.56% to 0.75% in the Sept quarter. The bank's shares were up 0.85% by closing today.

The stocks of Adani Enterprises were down 0.67% as the company reported its Q2 numbers. It reported a 42% fall in its net profit due to the losses it saw in its power business. Adani Power, a subsidiary of Adani Enterprises, had already reported its numbers in the last week.

Bajaj Electricals reported a 8% rise in its net profit as the company suffered losses in its engineering and projects business. However, its losses were offset by one-off profits and lower taxes. Its shares closed 4.57% down today.

Financial shares of Orient Bank of Commerce rose 6% after it reported 80% rise in its net profit. The company reported a decline in its gross NPAs. The net NPAs, however, went up sharply from 1.90% to 2.04%.

Troubled airline Kingfisher's stocks were up on the news that its staff has agreed to resume work.

The advance-decline ratio on the BSE indicated a negative bias as the total declines outnumbered the advances.