FIRST TRADE: Sensex slips around 170 pts; Nifty below 21,450; Tech Mahindra down over 4% post-Q3 results

Stocks market today: The Indian share market opened lower with a focus on the Street's reaction to the quarterly results of key Nifty 50 constituents such as Tata Steel, Tech Mahindra, and Bajaj Auto. Last seen, both indices were down 0.19 per cent. The S&P BSE Sensex traded 132.77 points lower at 70,927.54, and the NSE Nifty was down 39.9 points at 21,414.05.

"Since the tug of war between the FIIs and DIIs continues, volatility will remain high in the near term. This volatility may be used by investors to churn their portfolios. A significant anomaly in the market is the high valuation in some pockets and the fair and even attractive valuation in some other pockets," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

For instance, some PSU stocks are flying high on hopes based on order flows. It will take a long time for these order flows, like in shipbuilding, for instance, to translate into profits. And there is no guarantee that it will happen. On the other hand, pockets like banking are fairly valued, and the performance and prospects are good. There is value in blue chips like HDFC Bank, Nair added.

Dr. Vijayakumar added that rising bond yields in the US are a matter of concern. This rally in global stock markets was triggered by the Fed pivot, which saw the 10-year bond yield fall from 5 per cent to around 3.8 per cent. Now the 10-year is back at 4.18 per cent which indicates that the Fed rate cut will come only in H2 of 2024. A significant takeaway from the Q3 results is the improving margins of the auto industry.

Meanwhile, the Nifty Mid Cap 100 opened flat with a positive bias, and the Small Cap 100 traded higher. Nifty Bank was muted at 45,087.6.

BUZZING STOCKS

Laurus Labs shares slipped over 5 per cent a day after the company posted weak Q3 numbers.

PNB Housing Finance shares were down over 4 per cent a day after the company posted mixed Q3 results.

Tech Mahindra shares declined over 4 per cent a day after the company posted weaker-than-estimated results.

Aarti Drugs shares slipped over 3 per cent a day after the company posted weak Q3 numbers.

TVS Motor Company shares tumbled over 3 per cent after posting Q3 results.

Conversely, Mazagon Dock Shipbuilders shares were up over 3 per cent after the company signed a contract with the acquisition wing of the Ministry of Defence for the construction and delivery of 14 Fast Patrol ‘Vessels (FPVs) for the Indian Coast Guard (ICG).

DLF shares were up over 2 per cent a day after the company posted Q3 results.

Indus Tower shares rose over 3 per cent a day after the company posted a good Q3 with profit increasing 18.9 per cent year-on-year (YoY).

GLOBAL MARKETS

Asian stocks traded cautiously, and bonds fell on Thursday while investors waited on more details of China's stimulus plans and for a European Central Bank meeting later in the session.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 per cent in early trade, with the Hang Seng (.HSI) opening 0.6 per cent higher and mainland indexes steady.

Japan's Nikkei fell 0.3 per cent. The strong U.S. data and a cut in Chinese bank reserve requirements, releasing about a trillion yuan ($140 billion) for lending, had cheered investors, lifting the S&P 500 to a record high and world stocks to a two-year peak.

(With input from agencies.)

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