Sensex, Nifty a tad higher as assembly results limit gains

Indian equities on Friday opened marginally higher amid mixed cues from global markets. Disappointment over state election results kept the gains in check.

At 9.25am, the benchmark Sensex rose 0.2% to 39120 points while Nifty gained 0.02% to 11584.75 points.

Global markets were trading mixed ahead of next week's federal reserve review. US share indices recovered with Dow Jones closing down 28 points even as Nasdaq clocked gains of nearly 1%. Asian indices opened flat as the Japanese Nikkei recovered from morning weakness to trade marginally in the green.

"The state election results are disappointment for the BJP. We believe that the drubbing in the state elections may partly reflect broader economic disenchantment with the government on the growth front. The BJP’s (Bharatiya Janata Party’s) under-performance in rural constituencies is reminiscent of the struggle it has been facing in multiple state elections since 2018, where adverse terms of trade have dented rural incomes," said Nomura Research in a note to its investors.

ITC gained 2.4% after the company reported better-than-expected earnings on Thursday. The company clocked a 36.16% jump in its September quarter standalone profit, beating Street estimates. Net profit at the maker of Sunfeast biscuits and Gold Flake cigarettes rose from ₹2,954.67 crore in the year-ago period to ₹4,023.10 crore in the three months ended 30 September.

Infosys Ltd rose 2%. The company’s regulatory problems mounted after a US law firm filed a suit against the company on behalf of American investors, seeking damages for manipulating earnings, even as the US securities regulator started a probe into a complaint by anonymous whistleblowers.

State Bank of India rose 1.3% ahead of its September quarter earnings. According to 21 Bloomberg analyst estimates, the lender may report a profit of ₹2292.80 crore.

PNB Housing Finance jumped 14% after its September quarter net profit beat estimates. The lender on Thursday reported a 45% rise in net profit at ₹366.8 crore in the second quarter of this fiscal.

"Market has been flattish during the week assessing the ongoing Q2 result which is marginally better-than-expected till date. Given the trading holiday (as markets on Monday), volume has reduced... Going forward, weak crude oil prices, positive global sentiment and further reforms from the government are expected to provide positive momentum," said Vinod Nair, head of Research, Geojit Financial Services.