Market Commentary - End-Session
Geopolitical worries, FII outflows wreck market, Nifty ends below 24,800 As on : 07-Oct-24  17:50

The key equity benchmarks extended their losing streak for the sixth consecutive session on Monday, as concerns over FIIs outflows and global geopolitical tensions weighed on investor sentiment. The broader market took a significant beating, with midcap and smallcap indices underperforming sharply. The Q2 earnings season is also approaching, with IT majors set to report results this week. Meanwhile, the RBI's monetary policy meeting began today, further dampening investor sentiment. The Nifty closed below the 24,800 level after hitting the day's high of 25,143 in early trade. IT shares bucked the broader sell off. PSU banks, energy and metal shares tumbled.

In the barometer index, the S&P BSE Sensex dropped 638.45 points or 0.78% to 81,050. The Nifty 50 index slipped 218.85 points or 0.87% to 24,795.75. The 50-unit index has corrected 5.42% in five consecutive sessions.

Adani Ports & Special Economic Zone (down 4.17%), HDFC Bank (down 2.24%) and Reliance Industries (down 1.18%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 1.85% and the S&P BSE Small-Cap index tumbled 3.27%.

The market breadth was weak. On the BSE, 636 shares rose and 3,422 shares fell. A total of 120 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.74% to 15.08.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.82% to 6.953 as compared with previous close 6.829.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9925, compared with its close of 83.9900 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement rose 0.19% to Rs 76,266.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 102.55.

The United States 10-year bond yield grew 0.71% to 4.011.

In the commodities market, Brent crude for December 2024 settlement gained $1.82 or 2.33% to $79.87 a barrel.

Global Markets:

Dow Jones Futures were down 178 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia advanced on Monday after strong U.S. job growth data, which eased recession concerns and reduced expectations for interest rate cuts.

This week, three central banks are set to announce their interest rate decisions namely, the Bank of Korea, the Reserve Bank of New Zealand, and the Reserve Bank of India.

Short-term U.S. Treasury yields rose after the non-farm payrolls report showed more jobs added than expected in September. Crude oil prices declined slightly despite ongoing tensions in the Middle East.

U.S. stocks rallied on Friday after the positive job report boosted investor confidence in the economy. The S&P 500 rose 0.9%, while the Nasdaq Composite jumped 1.22%. The Dow Jones Industrial Average added 0.81%, to notch an all-time closing high of 42,352.75. Technology stocks like Tesla, Amazon, and Netflix led the gains, while financial stocks also performed well.

Data showed nonfarm payrolls grew by 254,000 jobs in September, far outpacing the forecasted gain of 150,000. The unemployment rate ticked down to 4.1% despite expectations for it to hold steady at 4.2%.

Stocks in Spotlight:

Avantel rallied 3.56% after the company reported 42.44% increase in consolidated net profit to Rs 22.89 crore in Q2 FY25 as compared with Rs 16.07 crore in Q2 FY24. The company's revenue from operations jumped 42.5% YoY to Rs 77.42 crore in Q2 FY25.

Antony Waste Handling Cell added 0.62% after its subsidiary secured a Rs 908-crore contract for door-to-door waste collection from Navi Mumbai Municipal Corporation.

Natco Pharma jumped 3.47% after announcing a settlement in the U.S. patent litigation for generic Ozempic. The company is partnered with Mylan on the development of the generic drug. Ozempic, a glucagon-like peptide-1 (GLP-1) receptor agonist, has gained widespread popularity for its effectiveness in managing type 2 diabetes and promoting weight loss.

Hitachi Energy India gained 2.65% as it announces plans to invest Rs 2000 crore in India to expand capacity, portfolio, and talent base.

CG Power and Industrial Solutions 5.56% after the company acquired Renesas' Radio Frequency Components business for $36 million, marking its entry into semiconductor design.

Kavveri Telecom Products gained 2% after its Radio Frequency (RF) products receive approval from a major European OEM for integration into their systems.

Mahanagar Telephone Nigam dropped 5% after the State Bank of India downgraded the company's term loan account to a non-performing asset (NPA) due to non-payment of dues. According to SBI, MTNL's total outstanding amount is Rs 325.53 crore, of which Rs 281.62 crore is overdue.

Titan Company slipped 2.07%. The Tata Group company reported standalone revenue growth of 25% in second quarter of FY25. The firm also launched 75 new outlets during the quarter, taking its total retail network to 3,171 stores.

Info Edge (India) declined 2.41%. The company announced that its standalone billings increased by 14.29% to Rs 650.3 crore in Q2 FY25 compared with Rs 569 crore in Q2 FY24.

Tata Steel lost 1.47%. The company said that in Q2 FY25, the crude steel production of India division stood at 5.27 million tons (up 5% YoY) and deliveries were 5.10 million tons (up 6% YoY).

Adani Wilmar slipped 1.46%. The FMCG company said that it achieved a volume growth of 16% YoY in Q2 FY25, driven by strong execution in both edible oils and food business.

Kalyan Jewellers shed 1.61%. The jewellery retailer said that its revenue jumped approximately 39% from India operations during Q2 FY25 as compared to Q2 FY24.

Life Insurance Corporation of India (LIC) dropped 4.16%. The company increased its stake in Bank of Maharashtra to 7.10% from 4.05% and in Apollo Tyres to 5.030% from 4.983%.

Metropolis Healthcare fell 1.77%. The healthcare service provider said that its revenue jumped around 13% year on year (YoY) in the quarter ended 30 September 2024.

Indusind Bank slipped 2.43%. The private lender's net advances jumped 13% to Rs 3,56,980 crore as of 30 September2024 as compared to Rs 3,15,454 crore as of 30 September2023.

Bank of India fell 3.08%. The bank's domestic deposits increased 12.34% to Rs 6,72,731 crore as on September 2024 compared with Rs 5,98,850 crore posted in September 2023.

IDBI Bank declined 4.14%. The bank said that its total business jumped 15% to Rs 4,78,614 crore in Q2 FY25 as compared with Rs 4,17,936 crore in Q2 FY24.

Federal Bank dropped 5.01%. The bank reported 15.6% growth in total deposits to Rs 2,69,105 crore as of September 2024 as compared with Rs 2,32,868 crore as of September 2023.

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