Market Commentary - End-Session
Sensex slips 427 pts, Nifty closes below 24,350; private banks drag As on : 30-Oct-24  17:04

The domestic equity benchmarks ended lower on Wednesday, snapping a two-day rally, as mixed global cues and concerns about domestic economic growth weighed on investor sentiment. The Nifty 50 index closed below the 24,350 mark, dragged down by losses in banks and consumer durables stocks. Media and FMCG stocks, however, bucked the trend and ended higher. The benchmark index traded in a narrow range throughout the session, failing to break above the 24,500 level.

The S&P BSE Sensex, declined 426.85 points or 0.53% to 79,942.18. The Nifty 50 index lost 126 points or 0.51% to 24,340.85.

Infosys (down 2.01%), ICICI Bank (down 1.52%) and HDFC Bank (down 0.91%) were major drags.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index jumped 1.54%.

The market breadth was strong. On the BSE, 2892 shares rose and 1040 shares fell. A total of 79 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.54% to 15.47.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.45% to 6.946 as compared with previous close 6.961.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.095, compared with its close of 84.055 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.54% to Rs 79,566.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.19% to 104.11.

The United States 10-year bond yield declined 1.31% to 4.219.

In the commodities market, Brent crude for November 2024 settlement added 69 cents or 0.97% to $71.81 a barrel.

Global Markets:

European shares declined on Wednesday as investors await the latest growth data from the region, the U.K. government's Budget and another batch of earnings.

Most Asian stocks ended lower on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.

Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.

In the US, indices marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors. The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.

Sentiment was underpinned by strong earnings from Alphabet Inc. Tech majors Meta Platforms Inc and Microsoft Corporation are set to report on Wednesday, while Amazon.com Inc and Apple Inc are due on Thursday.

A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserve's preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

New Listing:

Shares of Godavari Biorefineries closed at Rs 342.85 on the BSE, a discount of 2.60% compared with the issue price of Rs 352.

The scrip was listed at Rs 310.55, a discount of 11.78% to the issue price. The stock has hit a high of 354 and a low of 308.05. On the BSE, over 6.12 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Force Motors hit an upper circuit of 20% after the company's consolidated net profit jumped 43.83% to Rs 135.02 crore in Q2 FY25 as against Rs 93.87 crore posted in Q2 FY24. Revenue from operations grew 7.75% to Rs 1,941.33 crore in the quarter ended 30 September 2024.

Maruti Suzuki India rose 1.92% on bargain hunting after a recent steep fall. Shares of Maruti Suzuki tumbled 7.65% in the past four sessions. It fell 3.79% on Tuesday (29 October 2024) after the company reported 17.4% fall in net profit to Rs 3,069.2 crore while sales remained almost flat at Rs 35,589.10 crore in Q2 FY25 over Q2 FY24. The fall in net profit was due to a provision of Rs 837.6 crore resulting from the withdrawal of indexation benefit and change in tax rate on long term capital gains on debt mutual funds as per the Finance Act 2024.

Voltas slipped 4.18% after the company's consolidated net profit slipped 59.91% to Rs 133.99 crore on 46.78% decline in revenue from operations to Rs 2,619.11 crore in Q2 FY25 over Q1 FY25.

Honeywell Automation India slumped 7.78% after the company reported 5.57% decline in net profit to Rs 115.10 crore on 7.27% decrease in revenue from operations to Rs 1,023.9 crore in Q2 FY25 over Q2 FY24.

Glaxosmithkline Pharmaceuticals advanced 2.16% after the company's standalone net profit jumped 15.38% to Rs 248.69 crore on 4.9% increase in revenue from operations to Rs 1,000.05 crore in Q2 FY25 over Q2 FY24.

Deepak Fertilisers & Petrochemicals Corporation declined 1.39%. The company's consolidated surged 237.38% to Rs 214.07 crore on 13.31% increase in revenue from operations to Rs 2,746.72 crore in Q2 FY25 over Q2 FY24.

Procter & Gamble Hygiene & Health Care shed 0.92%. The company's net profit increased marginally to Rs 211.90 crore in September 2024 quarter as against Rs 210.69 crore posted in September 2023 quarter. Revenue from operations declined 0.28% YoY to Rs 1,135.16 crore in the quarter ended 30 September 2024.

TTK Prestige added 1.29%. The kitchen appliances manufacturer reported 10.79% decline in consolidated net profit to Rs 52.87 crore in Q2 FY25 as compared with Rs 59.27 recorded in Q2 FY24. Revenue from operations increased 2.82% YoY to Rs 750.06 crore in the quarter ended 30 September 2024.

Prestige Estates Projects advanced 2.50%. The company reported 77.41% decrease in consolidated net profit to Rs 192.20 crore in Q2 FY25 as against Rs 850.90 crore recorded in Q2 FY24. However, revenue from operations grew 3.04% year on year (YoY) to Rs 2,304.40 crore in the quarter ended 30 September 2024.

Sheela Foam lost 1.88% after the company's consolidated net profit tumbled 77.68% to Rs 9.81 crore in Q2 FY25 as against Rs 43.96 crore posted in Q2 FY24. However, revenue from operations jumped 32.54% to Rs 812.75 crore in Q2 FY25 as against Rs 613.18 crore reported in corresponding quarter last year.

Hind Rectifiers hit an upper circuit of 5% after the company's net profit zoomed 156.42% to Rs 10.18 crore on 25.66% increase in revenue from operations to Rs 165.84 crore in Q2 FY25 over Q2 FY24. Profit before tax (PBT) surged to Rs 12.93 crore in Q2 FY25, up 115.86% from Rs 5.99 crore in Q2 FY25.

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