Market Commentary - End-Session
Benchmark end almost flat, Nifty ends below 24,150, Asian Paints drops 8% As on : 11-Nov-24  17:44

The domestic equity benchmarks ended almost flat with negative bias on Monday, marking a third consecutive day of losses. While IT and banking stocks provided some support, weakness in auutos, metals and FMCG dragged the indices down. The Nifty 50 index, after reaching an intraday high of 24,336.80, settled below the 24,150 mark. The index opened lower but bounced from the 24,000 level. However, the recovery was short-lived, as selling pressure emerged in the afternoon session.

Technically, the 24,000 level is a critical support for the index. A breach below this level could lead to further downside, with 23,800 as the next support. On the upside, the index may target 24,300 and 24,500.

The S&P BSE Sensex, was up 9.83 points or 0.01% to 79,496.15. The Nifty 50 index shed 6.90 points or 0.03% to 24,141.30.

Asian Paints (down 8.18%), Britannia Industries (down 5.62%) and Reliance Industries (down 0.85%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.79% and the S&P BSE Small-Cap index fell 1.14%.

The market breadth was weak. On the BSE, 1488 shares rose and 2637 shares fell. A total of shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.38% to 14.27.

Economy:

India's forex reserves declined by $2.675 billion to $682.13 billion for the week ended November 1, the RBI said on Friday. In the previous reporting week, the overall reserves had dropped by $3.463 billion to $684.805 billion.

For the week ended November 1, foreign currency assets, a major component of the reserves, decreased by $3.902 billion to $589.849 billion, the data released on Friday showed.

Gold reserves increased by $1.224 billion to $69.751 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by $1 million to $18.219 billion, the apex bank said.

India's reserve position with the IMF was up by $4 million to $4.311 billion in the reporting week, the data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 1.85% to 6.899 as compared with previous close 6.774.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3850, compared with its close of 84.3700 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.71% to Rs 76,727.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.29% to 105.30.

The United States 10-year bond yield grew 0.58% to 4.335.

In the commodities market, Brent crude for November 2024 settlement lost 86 cents or 1.16% to $73.01 a barrel.

Global Markets:

The Dow Jones index future was up 157 points, signaling a positive opening for U.S. stocks today.

European market advanced on Monday, starting the week on a positive footing after Donald Trump's election victory and interest rate cuts from major central banks.

Most Asian stocks declined after China's latest stimulus measures underwhelmed and its October inflation numbers came in lower than expected, prompting concerns over the recovery in the world's second-largest economy.

Meanwhile, Bitcoin surged past $81,000, driven by the incoming president's support for digital assets and the election of pro-crypto lawmakers. Oil prices declined further, extending losses from the previous session, as weak demand from China continued to dampen market sentiment.

In the US, the S&P 500 reached a new record high, driven by optimism surrounding the potential economic benefits of a second term for the incumbent US president. The S&P 500 rose 0.38% to 5,995.54 points on Friday. The Dow Jones Industrial Average rose 0.59% to 43,988.99 points, while the NASDAQ Composite rose 0.09% to 19,286.78 points.

Tesla's stock surged over 8%, boosting its market valuation above $1 trillion, while Airbnb shares fell more than 8% following a mixed quarterly earnings report.

The University of Michigan's Consumer Sentiment reading climbed to 73 in November, up from 70.5 last month, reflecting increased optimism about the economy.

Stocks in Spotlight:

Asian Paints shares plummeted 8.18% on Monday after the company reported a significant decline in its quarterly earnings. The paint giant's consolidated net profit for Q2 FY25 fell by 42.37% to Rs 694.64 crore, compared to Rs 1,205.42 crore in the same quarter last year. Revenue from operations also decreased by 5.31% to Rs 8,003.02 crore. Several brokerages expressed disappointment with the company's underwhelming performance, citing a challenging demand environment and increased competition as the primary factors.

Power Finance Corporation (PFC) surged 7.15% after the company's consolidated net profit rose 8.85% to Rs 7,214.90 crore on 14.96% increase in total revenue from operations to Rs 25,721.79 crore in Q2 FY25 over Q2 FY24.

UPL slipped 7.62% after the agrochemical maker reported consolidated net loss of Rs 443 crore in Q2 FY25 as against with net loss of Rs 189 crore posted in Q2 FY24. Revenue from operations rose 9.05% YoY to Rs 11,090 crore in the quarter ended 30 September 2024, driven by 16% increase in volumes, 7% decline in price and near flat Fx.

ITI jumped 7.84% on emerges as the lowest bidder for three packages of BharatNet phase-3 project for a total value of Rs 4,559 crore.

Data Patterns (India) slipped 6% after the company's standalone net profit fell 10.38% to Rs 30.28 crore in Q2 FY25 as compared with Rs 33.79 crore posted in Q2 FY24. The company's revenue from operations declined 15.96% YoY to Rs 91.02 crore in the quarter ended 30 September 2024.

Antony Waste Handling Cell hit a lower limit of 10% to Rs 712.70 after the company's net profit declined in Q2 September 2024. On a consolidated basis, net profit of Antony Waste Handling Cell declined 56.24% to Rs 12.09 crore on 1.35% fall in net sales to Rs 221.24 crore in Q2 September 2024 over September 2023. Profit before tax stood at Rs 19.1 crore in Q2FY25, down 50% YoY and 25% QoQ.

Shipping Corporation of India (SCI) rallied 7.04% after the company's consolidated net profit surged 343.39% to Rs 291.44 crore on 32.71% increase in revenue from operations to Rs 1450.76 crore in Q2 FY25 over Q2 FY24.

Advanced Enzyme Technologies tumbled 15.5% after the company reported 4.59% decline in consolidated net profit to Rs 32.83 crore on a 7.44% slide in revenue from operations to Rs 1,460.95 crore in Q2 FY25 over Q2 FY24. The revenue de-grew by 3% in Americas, 27% in Europe, 9% in Asia (ex-India) while it grew by 8% in rest of the world.

Pix Transmissions hit an upper circuit of 20% after the company's consolidated net profit surged 95.89% to Rs 40.53 crore in Q2 FY25 as against Rs 20.69 crore in Q2 FY24. Revenue from operations jumped 27.89% to Rs 159.05 crore in Q2 FY25 as against Rs 124.36 crore in Q2 FY24.

PPAP Automotive hit upper circuit of 20% after the company's standalone net profit surged 106.92% to Rs 5.56 crore in Q2 FY25 as compared with Rs 2.68 crore in Q2 FY24. Revenue from operations rose 0.59% to Rs 1,413.06 crore during the quarter.

IPO Update:

The initial public offer (IPO) of Niva Bupa Health Insurance Company received bids for 31,13,62,800 shares as against 17,28,57,143 shares on offer, according to stock exchange data at 17:00 IST on Monday (11 November 2024). The issue was subscribed 1.80 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.

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