Sensex wobbles in early trade; Axis Bank gains, Infosys under pressure1 min read . Updated: 23 Oct 2019, 09:29 AM IST
- Banking stocks, led by Axis Bank, supported the market
- Infosys shares fell, extending Tuesday's losses
Indian markets wobbled in early trade with Sensex down about 40 points while Nifty was near 11,575. Banking stocks supported the market with Axis Bank shares up 2%. Infosys shares fell 3% in early trade, extending their Tuesday's 16% loss.
Private lender Axis Bank on Tuesday reported a healthy second quarter performance. Though the bank reported a net loss of ₹112 crore for the quarter ended September 30, it was driven by a one-time tax impact of ₹2,138 crore due to changes in corporate tax rate. Adjusted for this extraordinary item, net profit of Axis Bank would have been ₹2,026 crore, up 157% year on year. Profit before tax for Q2 grew 109% year-on-year to ₹2,433 crore from ₹1,167 crores in Q2 FY19.
"Technically, Nifty has established a higher bottom - higher top series and strategy should be to buy into strong companies if market corrects to major supports like 11550 and 11500. On the higher side, 11720 would be the ultimate resistance and if that hurdle is crossed, Nifty would start trending downwards to 12000," says Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities.
The global cues are weak with most Asian markets trading lower today. Overnight, the Wall Street fell 0.36%. Uncertainty on the Brexit front continued. On Tuesday, the British parliament voted in favour of Prime Minister Boris Johnson's Brexit plan, but then rejected his timetable to fast-track legislation to take Britain out of the European Union. It now seems unlikely that Britain will crash out of the EU on October 31.
Markets got some support after China signalled progress in trade talks with the the US. (With Agency Inputs)