Sensex ends at day’s low, down 746 points ; Bajaj Auto jumps 11%; RIL down 2%

Investors took some profit off the table on Friday after markets scaled historic levels a day before, when the S&P BSE Sensex surpassing the 50,000-mark for the first time. That said, investors rewarded stocks of the firms that delivered strong Q3FY21 results.

In the intra-day trade, the benchmark S&P BSE Sensex plunged 790 points and hit a low of 48,835 levels. The index settled around day’s low level of 48,878 levels, down 746 points or 1.5 per cent. Financial bore the maximum brunt with Axis Bank declining 4.4 per cent on the Sensex, followed by SBI (3.5 per cent), ICICI Bank (3.7 per cent), and IndusInd Bank (3.5 per cent).

On the flipside, Bajaj Auto, HUL, TCS, Ultratech Cement, and Bajaj Finserv were the only gainers on the Sensex.

On the NSE, the Nifty50 settled at 14,372 levels, down 218 points or 1.5 per cent.

The broader markets, however, fared slightly better. The S&P BSE MidCap index ended 1.1 per cent lower at 18,777.46 levels while the S&P BSE SmallCap index closed at 18,442 levels, down 0.93 per cent.

Sectorally, most of the key indices settled lower. The Nifty Metal index underperformed the benchmark and closed 4 per cent lower. Among individual stocks, SAIL fell 14 per cent, JSPL slipped 8 per cent, and Hindustan Copper declined over 4 per cent.

That apart, Nifty Bank index tanked over 1,000 points, or 3.25 per cent, to close at 31,176 levels.

Shares of SBI Cards settled Friday’s session 5 per cent higher after the SBI-arm reported improvement in asset quality in the December quarter.

That apart, investors bought shares of Bajaj Auto, which hit a record high of Rs 4,130 and ended 11 per cent higher on the Sensex, after the company reported an expansion in operating Ebitda margin to 19.8 per cent from 18.4 per cent in the year-ago quarter.

On the downside, shares of Biocon plunged 13 per cent in the intra-day trade and ended 11 per cent lower on lower-than-expected Q3 results, with consolidated net profit down 17 per cent year on year (YoY) at Rs 169 crore.

Shares of Reliance Industries ended 2.4 per cent lower on Friday ahead of the announcement of its December quarter results. The shares have surged around 6 per cent during the week.

Shares of metal companies were under pressure at the bourses on Friday, with the Nifty Metal index falling 4 per cent, after share prices of Steel Authority of India (SAIL) and Jindal Steel and Power (JSPL) declined by up to 14 per cent on account of profit booking by investors. At 02:01 pm, Nifty Metal index, the top loser among sectoral indices, was down 4.3 per cent, as compared to 1.4 per cent decline in the Nifty50 index. Welspun Corp, Hindalco Industries, Hindustan Copper and JSW Steel were down 5 per cent in intra-day trade on the National Stock Exchange (NSE).

Shares of Bandhan Bank sank 11% in 2 days on disappointing December quarter results. However, operating performance remains strong, led by higher net interest income (NII) as margin improved 30 basis points (bps) sequentially, while assets under management (AUMs) grew at 23 per cent YoY. NII for the quarter grew by 34.5 per cent to Rs 2,072 crore as against Rs 1,540 crore in the corresponding quarter of the previous year.

Cyient shares soared 15 per cent to Rs 584 on the BSE on Friday in intra-day trade on the back of heavy volumes after the company’s management said it expects sequential improvement in margins in the January-March quarter (Q4FY21), driven by the increase in volume and improvement in operational efficiencies. The stock of the information technology (IT) & software company was quoting at its fresh 52-week high level.

Shares of automobile and auto ancillary companies were in top gear on Friday, with Nifty Auto and the S&P BSE Auto indices surging nearly 4 per cent at the bourses, hitting their respective 52-week highs, following a strong performance during the quarter ended December 2020 (Q3FY21).

Hero MotoCorp, the country’s largest two-wheeler maker, on Thursday said it has crossed the 100 million (10 crore) cumulative production milestone since its inception in 1984, and announced to introduce over 10 products annually in the next five years to keep its growth momentum. The company rolled out the 100 millionth unit, Xtreme 160R model, from its manufacturing facility in Haridwar.

Shares of JK Tyre & Industries hit a fresh 52-week high of Rs 132, soaring 14 per cent on the BSE in the early morning trade on Friday, after the company reported highest-ever quarterly sales and net profit for the quarter ended December 2020 (Q3FY21). The stock of tyre & rubber products maker zoomed 51 per cent in past four trading days.

Here are some picks from the week gone by.