Market Commentary - End-Session
Sensex tumbles 553 pts, Nifty holds 24,200 amid negative global signals As on : 31-Oct-24  17:48

The domestic equity benchmarks ended lower for the second straight session on Thursday, with Nifty50 briefly falling below 24,200, intraday. The decline was primarily triggered by selling pressure in key sectors such as IT, FMCG, and banking. Amid mixed global cues, the benchmarks opened marginally higher but turned negative immediately and extended the losses as the day progressed to end near the day's low. The Nifty, however, recovered and settled above the 24,200 mark. Trading was volatile due to expiry of monthly F&O contracts.

The S&P BSE Sensex, tumbled 553.12 points or 0.69% to 79,389.06. The Nifty 50 index declined 135.50 points or 0.56% to 24,205.35.

TCS (down 2.80%), Infosys (down 2.48%), ICICI Bank (down 1.57%) and Reliance Industries (down 0.84%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.34% and the S&P BSE Small-Cap index added 1.62%.

The market breadth was strong. On the BSE, 2,652 shares rose and 1,264 shares fell. A total of 110 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.35% to 15.57.

Both, BSE and NSE will conduct the Muhurat trading session on Friday, 1 November, from 6:00 pm to 7:00 pm. While markets remain closed during the day, this evening session allows investors to make token investments, following a long-standing custom of trading during Diwali.

Numbers to Tracks:

The yield on India's 10-year benchmark federal paper advanced 1.86% to 6.954 as compared with previous close 6.945.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0775, compared with its close of 84.0850 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement shed 0.30% to Rs 79,393.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 103.89.

The United States 10-year bond yield added 0.45% to 4.286.

In the commodities market, Brent crude for November 2024 settlement added 23 cents or 0.32% to $72.78 a barrel.

Global Market:

The US Dow Jones index futures are currently down by 224 points, signaling a weak opening for US stocks today.

European market declined as investors assessed the latest euro zone inflation data and latest key earnings from the region. Euro zone inflation rose to 2% in October, higher than September's 1.7% reading. The figures will inform the European Central Bank on the trajectory of expected interest rate cuts.

Most Asian stocks ended lower on Thursday as investors look to the Bank of Japan's rate decision, as well as key business activity figures from China.

The BOJ held its benchmark policy rate at 0.25%, unchanged from the previous meeting. The bank released a two-line statement simply stating the decision, with no clues on the timing of its next rate hike.

In China, the country's manufacturing purchasing managers index flipped into expansion territory for the first time since April, with the National Bureau of Statistics revealing the manufacturing PMI came in at 50.1.

In the US, stocks rallied on Wednesday, with the tech-heavy Nasdaq Composite reaching a new record high, driven by strong earnings from Alphabet. The Dow Jones Industrial Average gained 0.51%, the S&P 500 rose 0.29%, and the Nasdaq Composite climbed 0.24%.

Economic data released on Wednesday showed that the US economy grew at an annual rate of 2.8% in the third quarter, supported by consumer spending and government expenditure. However, this was a slowdown from the second quarter's 3% pace. Additionally, US private payrolls surged by 233,000 jobs in October, exceeding expectations.

Market participants are cautiously looking ahead to a crucial week, which includes the release of US non-farm payrolls data on Friday, the presidential election next Tuesday, and a Federal Reserve policy decision next Thursday. Gold prices continued to climb, reaching a new record high.

Stocks in Spotlight:

Larsen & Toubro (L&T) jumped 6.38% after the company reported 5.36% increase in consolidated net profit to Rs 3,395.29 crore in Q2 FY25 on 20.64% jump in revenue from operations to Rs 61,554.58 crore in Q2 FY25 over Q2 FY24.

Cipla surged 9.58% after the drug maker the US drug regulator classified the manufacturing facility in Goa as voluntary action indicated (VAI). The United States Food and Drug Administration (USFDA) conducted routine current Good Manufacturing Practices (cGMP) inspection at Goa manufacturing facility from 10 to 21 June 2024. On conclusion, the company had received 6 inspectional observations in Form 483.

Tata Power Company advanced 3.02% after the company's consolidated net profit increased 7.44% to Rs 1,093.08 crore despite of 0.26% increase in revenue from operations to Rs 15,697.67 crore in Q2 FY25 over Q2 FY24.

Biocon fell 1.45% after the company reported a consolidated net loss of Rs 16 crore in Q2 FY25 as against a net profit of Rs 126 crore in Q2 FY24. Revenue from operations rose by 4% year-over-year (YoY) to Rs 3,590 crore during the quarter.

Prudent Corporate Advisory Services soared 15% after the company's consolidated net profit climbed 69.36% to Rs 51.52 crore on 50.54% jump in revenue from operations to Rs 286.08 crore in Q2 FY25 over Q2 FY24.

Protean eGov Technologies declined 2% after the company's consolidated net profit declined 14.46% to Rs 28.04 crore on 6.75% fell in revenue from operations to Rs 219.70 crore in Q2 FY25 over Q2 FY24.

Automotive Axles rose 0.7%. The company's standalone net profit declined 20.20% to Rs 35.97 crore on 15.35% decrease in revenue from operations to Rs 494.68 crore in Q2 September 2024 over Q2 September 2023.

Pavna Industries rallied 4.75% after the company's standalone net profit spiked 76.43% to Rs 3.37 crore on 16.29% increase in revenue from operations to Rs 79.52 crore in Q2 FY25 over Q2 FY24.

Elpro International zoomed 9.62% after the company announced the acquisition of 33.33 lakh shares of Sagility India for a total consideration of Rs 10 crore. Sagility India is a technology-enabled, pure-play healthcare focused solutions and services provider that supports US-based payers, providers, and their partners to deliver best-in-class operations, enhance the member and provider experience, and improve the quality of care all while delivering cost effective healthcare financial and clinical outcomes. The company has presence in India, Philippines, U.S., Jamaica and Colombia.

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