Whalesbook
Market Dips for Second Consecutive Session
Indian equities concluded Wednesday's volatile trading session in negative territory, marking a second consecutive day of declines. The benchmark Nifty index dipped near the 25,700 mark before closing slightly above it. Both the Nifty and Sensex experienced intraday drops of approximately 0.50%. The Nifty settled 66.70 points, or 0.26%, lower at 25,665.60, while the Sensex shed 244.98 points, or 0.29%, to end at 83,382.7.
Broader Indices Show Resilience
In contrast to the main indices, broader market segments displayed strength. The Nifty Midcap 150 closed 0.21% higher, and the Nifty Smallcap 250 recorded a gain of 0.48%. This divergence suggests selective buying interest within smaller company stocks, even as large-cap indices faced selling pressure. Sector-wise, Nifty IT and Nifty Realty sectors led the decline, with Nifty Metal and Nifty PSU Bank also among the laggards.
Infosys Earnings in Focus
Technology heavyweight Infosys released its third-quarter results post-market hours, showing numbers largely in line with expectations, though profits fell short. The company reported a 10% year-on-year profit decline. A one-time impact from new labor codes reportedly dragged profits down by ₹1,289 crore. Quarterly growth in constant currency (CC) stood at 0.6%, lower than Q2's 2.2%. However, Infosys upgraded its FY26 revenue guidance to 3%-3.5% from 2%-3%. Large Deal Total Contract Value (TCV) surged 56% quarter-on-quarter to $4.8 billion, and attrition decreased to 12.3% from 14.3%. Revenue for the quarter rose 2.22% to ₹45,479 crore, beating estimates, while Ebit margin saw a slight dip.
Key Earnings and Corporate Actions
Beyond Infosys, numerous companies announced their financial results and business updates. HDB Financial reported a 36.3% profit increase. ICICI Prudential AMC posted an 8.9% rise in total income and a 9.8% profit jump, planning an interim dividend. Waaree Renewable's revenue more than doubled, and net profit increased significantly. Sterling & Wilson, however, reported a net loss despite revenue growth. Swaraj Engines saw a robust 31.8% net profit increase. DB Corp's revenue and profits declined. South Indian Bank's net profit grew by 9.5%.
Other notable announcements included Zydus Lifesciences receiving US FDA final approval for Eltrombopag tablets and completing the acquisition of two biologics units. Kernex Microsystems secured a significant order worth ₹2,466 crore from Chittaranjan Locomotive Works for KAVACH locomotive equipment. Zen Technologies received defence orders totalling ₹404 crore. Biocon concluded a ₹4,150 crore equity fundraise. Reliance Power is undergoing a forensic audit by SEBI. CEAT announced an investment in developing wind-solar projects. DLF received NCLT approval for the merger of 16 arms.