Market Commentary - End-Session
Market soars as Trump's victory spurs IT surge, VIX below 15 mark As on : 06-Nov-24  17:34

The benchmark equity indices surged to significant gains on Wednesday, marking the second consecutive day of upward momentum. This rally comes in the wake of Donald Trump's victory in the U.S. presidential election, bringing widespread optimism to the markets.

Closing above the 24,450 mark, the Nifty index demonstrated robust performance, largely propelled by a rally in IT stocks. Analysts attribute this surge to expectations of a stronger U.S. dollar under Trump's administration, which is projected to benefit Indian IT companies.

Additionally, there was notable investor interest in realty and energy stocks. Market participants are also optimistic about the potential for another rate cut by the Federal Reserve. The upcoming Fed meeting on November 7 has sparked hopes that further monetary easing could be on the horizon, adding to the buoyant market sentiment.

The S&P BSE Sensex surged 901.50 points or 1.13% to 80,378.13. The Nifty 50 index jumped 270.75 points or 1.12% to 24,484.05.

Adani Enterprises (up 4.57%), TCS (up 4.21%), Infosys (up 4.02%) and Reliance Industries (up 1.50%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index surged 2.28% and the S&P BSE Small-Cap index jumped 1.96%.

The market breadth was strong. On the BSE, 2999 shares rose and 969 shares fell. A total of 95 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanks 8.20% to 14.80.

Economy:

India's services activity growth recovered from September's ten-month low on sharper expansion in output and new business, final data from S&P Global showed on Wednesday. The HSBC final services Purchasing Managers' Index registered 58.5 in October, up from 57.7 in September. The flash score was 57.9.

The HSBC composite output index rose to 59.1 from September's ten-month low of 58.3. The final score was above the initial estimate of 58.6.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.66% to 6.912 as compared with previous close 6.911.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3050, compared with its close of 84.0975 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement fell 0.37% to Rs 78,220.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 1.39% to 104.86.

The United States 10-year bond yield jumped 3.38% to 4.433.

In the commodities market, Brent crude for Jan 2025 settlement lost 99 cents or 1.31% to $74.54 a barrel.

Global Markets:

The Dow Jones index futures soars 1,265 points, signaling a strong opening for U.S. stocks today, as Trump wins White House.

European stocks advanced while Asian stocks ended mixed on Wednesday. Donald Trump was elected the 47th President of the United States, while the Republicans were on course to sweep the Senate and the House.

On Tuesday, U.S. stock indexes surged, recovering from recent losses due to gains in technology stocks. Speculation over an upcoming rate cut by the Federal Reserve further boosted risk appetite. The S&P 500 climbed 1.2% to 5,782.76 points, while the NASDAQ Composite increased 1.4% to 18,438.62 points. The Dow Jones Industrial Average rose 1.02% to 42,221.88 points.

Attention this week remains on the Federal Reserve meeting, where the central bank is expected to reduce interest rates by 25 basis points.

Stocks in Spotlight:

Titan Company slipped 1.72% after the company reported 25% decline in standalone net profit to Rs 705 crore in Q2 FY25 as against Rs 940 crore posted in Q2 FY24. However, revenue from operations jumped 23.88% year on year (YoY) to Rs 12,268 crore in the quarter ended 30 September 2024.

Hindustan Zinc slumped 8.28% after the President of India announced its proposal to sell 2.50%stake in the company through an offer for sale (OFS).

Oil India jumped 6.01% after the petroleum business company's net profit zoomed 379.29% to Rs 2,016.20 crore in Q2 FY25 as against Rs 420.66 crore in Q2 FY24. Revenue from operations (excluding excise duty) fell 3.32% to Rs 7,247.03 crore in Q2 FY25 from Rs 7,496.51 crore reported in the same period a year ago.

GAIL (India) rallied 6.36% after the company's consolidated net profit increased 10.13% to Rs 2,689.67 crore on 2.7% rise in revenue from operations (excluding excise duty) to Rs 33,888.90 in Q2 FY25 over Q2 FY24.

Mankind Pharma added 1.32% after the company's consolidated net profit surged 30.43% to Rs 653.47 crore on a 13.6% rise in revenue to Rs 3,076.51 crore in Q2 FY25, compared to Q2 FY24.

Berger Paints India advanced 2.33% after the paint major's consolidated net profit decrease 7.53% to Rs 269.66 crore in Q2 FY25 as against Rs 291.64 crore posted in Q2 FY24. Revenue from operations rose marginally to Rs 2,774.61 crore in Q2 FY25 as against Rs 2,767.30 crore posted in Q2 FY24.

Hi-Tech Pipes fell 3.28%. The company reported 71.98% surge in consolidated net profit to Rs 18.11 crore in Q2 FY25 as against Rs 10.53 crore posted in Q2 FY24. However, revenue from operations decreased by 5.37% YoY to Rs 70,590 crore in the quarter ended 30 September 2024.

Gujarat Pipavav Port rose 1.09%. The company's consolidated net profit fell 18.19% to Rs 75.48 crore on 10.12% declined in revenue from operations to Rs 227.04 crore in Q2 FY25 over Q2 FY24.

Indian Energy Exchange (IEX) rallied 2.60% after the company informed that it has achieved electricity volume of 9,642 million units (MU) in October 2024, registering a growth of 4% YoY basis.

Datamatics Global Services (DGSL) added 1.24%. The company's consolidated net profit fell 13.99% to Rs 42.36 crore on a 7.95% rise in revenue to Rs 406.75 crore in Q2 FY25 over Q2 FY24.

Triveni Engineering & Industries declined 2.70% after the company reported consolidated net loss of Rs 19.20 crore in Q2 FY25 as against net profit of Rs 29.11 crore posted in Q2 FY24. Revenue from operations (excluding excise duty) increased 5.83% YoY to Rs 1,490.95 crore during the quarter.

CCL Products (India) jumped 7.51% after the coffee products maker's consolidated net profit increased 21.51% to Rs 73.95 crore on 21.5% rise in net sales to Rs 73,819.77 crore in Q2 FY24 over Q2 FY23.

Manappuram Finance declined 1.23%. The company's consolidated net profit added 2.19% to Rs 570.65 crore on 21.30% increase in total income to Rs 2,637.14 crore in Q2 FY25 over Q2 FY24.

IPO Update:

The initial public offer (IPO) of Swiggy received bids for 1,89,80,620 shares as against 16,01,09,703 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (06 November 2024). The issue was subscribed 0.12 times.

The issue opened for bidding on Wednesday (06 November 2024) and it will close on Friday (08 November 2024). The price band of the IPO is fixed between Rs 371 to Rs 390 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

ACME Solar Holdings' IPO received bids for 2,27,05,659 shares as against 5,82,03,223 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (06 November 2024). The issue was subscribed 0.39 times.

The issue opened for bidding on Wednesday (06 November 2024) and it will close on Friday (08 November 2024). The price band of the IPO is fixed between Rs 275 to Rs 289 per share. An investor can bid for a minimum of 51 equity shares and in multiples thereof.

Sagility India's IPO received bids for 20,09,58,500 shares as against 38,70,64,594 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (06 November 2024). The issue was subscribed 0.52 times.

The issue opened for bidding on Tuesday (05 November 2024) and it will close on Thursday (07 November 2024). The price band of the IPO is fixed between Rs 28 to Rs 30 per share. An investor can bid for a minimum of 500 equity shares and in multiples thereof.

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