Market Commentary - End-Session
Market tumbles as investors brace for Fed decision; Trent drops 7% As on : 07-Nov-24  17:26

The domestic equity markets suffered a significant setback on Thursday, erasing recent gains and closing the day in the red. The Nifty 50 index ended below the 24,200 level, while the Sensex also witnessed a sharp decline. The sell-off was widespread, but metal stocks bore the brunt of the decline. Investors grew cautious ahead of the US Federal Reserve's upcoming interest rate decision later on Thursday. The central bank's stance on monetary policy could have significant implications for global markets, including India.

While the recent political developments in the US had initially boosted market sentiment, concerns over potential trade tensions and economic uncertainties have started to weigh on investor sentiment. The imposition of tariffs on imports from major trading partners could disrupt global supply chains and fuel inflationary pressures.

The S&P BSE Sensex dropped 836.34 points or 1.04% to 79,541.79. The Nifty 50 index fell 284.70 points or 1.16% to 24,199.35. The 50-unit index rose 2.05% in the past two days.

Trent (down 6.54%), ICICI Bank (down 1.75%) and Reliance Industries (down 1.50%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.67% and the S&P BSE Small-Cap index declined 0.44%.

The market breadth was positive. On the BSE, 1821 shares rose and 2134 shares fell. A total of 98 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.05% to 15.03.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.68% to 6.912 as compared with previous close 6.912.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3550, compared with its close of 84.3150 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement rose 0.01% to Rs 76,665.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.26% to 104.81.

The United States 10-year bond yield added 0.05% to 4.433.

In the commodities market, Brent crude for Jan 2025 settlement lost 48 cents or 0.64% to $74.44 a barrel.

Global Markets:

The Dow Jones index future was up 81 points, signaling a positive opening for U.S. stocks today.

Shares in Europe and Asia advanced on Thursday as investors continued to digest Donald Trump's presidential election win and political upheaval in Germany. The focus is now on potential stimulus measures from China and monetary policy decisions from the U.S. Federal Reserve and Bank of England.

While most Asian markets saw significant gains on Wednesday, Chinese stocks were more subdued due to concerns over potential strict trade tariffs. Trump has pledged to impose a 60% tariff on all Chinese imports. Attention is now on the meeting of China's National People's Congress, which began earlier this week, for insights into possible fiscal stimulus measures.

Regional markets received limited positive influence from a strong session on Wall Street, where U.S. benchmark indexes reached record levels following Trump's victory. The S&P 500 increased by 2.5% to a record high of 5,929.04 points, the NASDAQ Composite rose 2.9% to 18,978.65 points, and the Dow Jones Industrial Average surged 3.6% to 43,729.93 points, marking its best day since 2022.

Trump Media & Technology Group, owner of the Truth Social platform, saw its shares rise by 6%. Tesla's stock jumped over 14%, as the company is perceived as a major beneficiary of Trump's win, partly due to Elon Musk's support of Trump's campaign. Financial stocks like Citigroup, Bank of America, and Wells Fargo experienced strong gains as investors speculated that Trump's presidency would lead to decreased regulation in the banking sector.

Investors are now awaiting the outcome of a Federal Reserve meeting later on Thursday for more guidance on interest rates. The Fed is expected to cut rates by 25 basis points, though the outlook remains uncertain amid Trump's presidency and persistent inflationary pressures.

Stocks in Spotlight:

Hindalco Industries tumbled 8.46% after the company's subsidiary Novelis Inc. reported 18% drop in net income to $128 million in the second quarter of fiscal year 2025. Net sales for the second quarter of fiscal year 2025 increased 5% versus the prior year period to $4.3 billion, mainly driven by higher average aluminum prices and a 1% increase in total flat rolled product shipments to 945 kilotonnes.

Tata Steel declined 1.76%. The steel major reported consolidated net profit of Rs 758.84 crore in Q2 FY25 as against net loss of Rs 6,511.16 crore reported in Q2 FY24. Total revenue from operations declined 3.19% year on year (YoY) to Rs 53,904.71 crore in the quarter ended 30 September 2024.

Mahindra & Mahindra slipped 1.06%. The company reported 13.2% rise in standalone net profit to Rs 3,840.88 crore on 12.25% increase in income from operations to Rs 28,919.34 crore in Q2 FY25 over Q2 FY24.

Trent tanked 6.54% after the retail major's consolidated net profit declined 14.35% to Rs 335.06 crore in Q2 FY25 as against Rs 391.21 crore in Q1 FY25. However, revenue from operations rose 1.27% quarter on quarter (QoQ) to Rs 4,156.67 crore in the quarter ended 30 September 2024. On YoY basis, the firm's consolidated net profit jumped 39.37% and revenue from operations surged 46.92% during the quarter.

Apollo Hospitals Enterprise jumped 6.52% to hit a record high of Rs 7482.80 today, after the company reported 62.64% surge in consolidated net profit to Rs 378.8 crore in Q2 FY25 as against Rs 232.9 crore posted in Q2 FY24. Revenue from operations increased 15.31% year on year (YoY) to Rs 5,589.3 crore in the quarter ended 30 September 2024.

Chambal Fertilisers and Chemicals advanced 2.36% after the company reported 40.79% YoY increase in consolidated net profit to Rs 536.37 crore in Q2 FY25. However, net sales declined 19.30% year-on-year (YoY) to Rs 4346.18 crore in Q2 FY25.

Avalon Technologies was locked in an upper circuit of 20% after the company's consolidated net profit surged 140.44% to Rs 17.48 crore on 37.5% increase in revenue from operations to Rs 275.01 crore in Q2 FY25 over Q2 FY24.

Venky's (India) slumped 8.56% after the company's net profit dropped 77.23% to Rs 7.76 crore in Q2 FY25 as against Rs 34.09 crore posted in Q2 FY24. However, Revenue from operations fell by 15.16% YoY to Rs 774.20 crore during the quarter.

Polycab India slipped 1.02%. The company said that it has emerged as the lowest bidder (L1) for a project floated by Bharat Sanchar Nigam (BSNL) worth Rs 1,549.66 crore.

TeamLease Services fell 4.13% after the company's consolidated net profit declined 28% to Rs 25 crore despite 8% increase in revenue from operations to Rs 2797 crore in Q2 FY25.

Gulf Oil Lubricants India declined 3.52%. The company's net profit jumped 14.68% to Rs 84.44 crore on 5.86% rise in revenue from operations to Rs 849.33 crore in Q2 FY25 over Q2 FY24.

Kirloskar Ferrous Industries slipped 1.47% after the company reported 4.93% decline in consolidated net profit to Rs 77.64 crore in Q2 FY25 as compared to Rs Rs 81.67 crore in Q2 FY24. However, revenue from operation gained 6.81% to Rs 1,666.02 crore in Q2 FY25 as compared to Rs 1,559.69 crore posted in the same period last year.

Rain Industries lost 2.04% after the company reported consolidated net loss of Rs 154.94 crore in Q3 CY24 as compared with net loss of Rs 65.75 crore in Q3 CY23. Revenue from operations declined 5.43% YoY to Rs 3,934.28 crore in the quarter ended 30 September 2024.

Kansai Nerolac Paints fell 2.10% after the company reported 27.64% decline in standalone net profit to Rs 130.16 crore as against Rs 179.89 crore posted in Q2 FY24. Revenue from operations was at Rs 1,863.77 crore in Q2 FY25, up 0.98% as against Rs 1,845.57 crore in Q2 FY24.

IPO Update:

The initial public offer (IPO) of Niva Bupa Health Insurance Company received bids for 11,18,61,400 shares as against 17,28,57,143 shares on offer, according to stock exchange data at 17:00 IST on Thursday (07 November 2024). The issue was subscribed 0.65 times.

The issue opened for bidding on Thursday (07 November 2024) and it will close on Monday (11 November 2024). The price band of the IPO is fixed between Rs 70 to Rs 74 per share. An investor can bid for a minimum of 200 equity shares and in multiples thereof.

Swiggy's IPO received bids for 5,56,98,652 shares as against 16,01,09,703 shares on offer, according to stock exchange data at 17:00 IST on Thursday (07 November 2024). The issue was subscribed 0.35 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 4,05,69,939 shares as against 5,82,03,223 shares on offer, according to stock exchange data at 17:00 IST on Thursday (07 November 2024). The issue was subscribed 0.70 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 1,23,99,74,500 shares as against 38,70,64,594 shares on offer, according to stock exchange data at 17:00 IST on Thursday (07 November 2024). The issue was subscribed 3.20 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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