BackSensex gains 57 points ahead of policy decisions, derivatives expiry; Axis Bank falls 3.11%
Indian equities fluctuated as investors awaited policy decisions from the US Federal Reserve and the Bank of Japan and the expiry of monthly derivatives contracts
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Mumbai: Indian equities fluctuated as investors awaited policy decisions from the US Federal Reserve and the Bank of Japan (BoJ) and the expiry of monthly derivatives contracts on Thursday.
Adani Ports and Special Economic Zone Ltd increased the most in two months. Bharti Airtel Ltd, the largest mobile-phone operator, rose to an eight-month high before its quarterly results later on Wednesday. Axis Bank Ltd dropped the most in a month after its net income missed estimates. ICICI Bank Ltd and State Bank of India (SBI) were among the worst performers on the S&P BSE Sensex.
The Sensex added 0.2%, or 56.82 points, to 26,064.12 at the close, changing direction at least 15 times. A 13% rally from a February low sent the gauge above its 200-day moving average this week for the first time in eight months. That has pushed up its valuation to the highest since August. The index is just 0.2% away from erasing this year’s loss.
“Global factors and the local earnings are the two overhangs on the market, which is witnessing expiry-related volatility," Chokkalingam G., managing director at Equinomics Research and Advisory Pvt. Ltd in Mumbai, said in a phone interview. “Indian economic macros are getting better and the earnings so far have been slightly better than expectations."
Traders rolled over 51% of the NSE Nifty 50 Index futures contracts to the May series that starts Friday, versus a six-month mean of 57%, data show. The Nifty index rose 0.2%. The monthly derivatives futures expire on last Thursday of every month.
The MSCI Asia Pacific Index dropped 0.7%. The gauge is up about 16% from this year’s low in February amid optimism the Fed will be patient with increases to interest rates, while Japan’s central bank steps up measures to shore up its economy.
Earnings scorecard
Bharti Airtel may report fourth-quarter profit of ₹ 1,230 crore, according to the median estimate of 20 analysts in a Bloomberg survey. That compares with net profit of ₹ 1,260 crore in the same period a year earlier. The shares surged 3.5%.
Axis Bank reported after market hours that fourth-quarter profit was ₹ 2,150 crore, missing the ₹ 2,330 crore estimated by 28 analysts in a Bloomberg survey. The shares tumbled 3.11%, the most since 28 March.
So far, four out of seven Sensex companies that have reported March quarter results beat or matched estimates.
ICICI Bank tumbled 3.7%, while SBI declined 2.17%.
Adani Ports soared 5.1%, the best performer on the Sensex. Oil and Natural Gas Corp. Ltd, the largest state-owned explorer, advanced the most since 18 February as US crude climbed above $45 a barrel for the first time since November.
Global funds bought $400 million of Indian stocks this month, adding to their biggest monthly purchase in three years in March. The Sensex has risen 2.9% this month and trades at 16.1 times 12-month projected earnings versus 11.9 for the MSCI Emerging Markets Index. Bloomberg
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