Market Commentary - End-Session
Sensex tanks 821 pts, Nifty drops below 23,900; Britannia Inds down 7% As on : 12-Nov-24  17:47

The domestic equity benchmarks continued their downward spiral on Tuesday, marking the fourth consecutive day of losses. The Nifty 50 index decisively breached the 23,900 level, closing near its intraday low. Sectors like auto, FMCG, and metals bore the brunt of the sell-off. Increased profit-booking and mixed global signals further exacerbated the decline.

The S&P BSE Sensex slipped 820.97 points or 1.03% to 78,675.18. The Nifty 50 index lost 257.85 points or 1.07% to 23,883.45. The 50-unit index has fallen 2.45% in four sessions.

Britannia Industries (down 7.32%), HDFC Bank (down 2.73%) and Bajaj Finance (down 1.98%) were major drags.

The S&P BSE Mid-Cap index fell 0.98% and the S&P BSE Small-Cap index declined 1.26%.

The market breadth was weak. On the BSE, 1,181 shares rose and 2,791 shares fell. A total of 89 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 2.24% to 14.59.

Economy:

India's retail inflation, based on the Consumer Price Index (CPI), in October 2024 surged to a 14-month high of 6.21%, according to the latest official data released on Tuesday. India's retail inflation had stood at a nine-month high of 5.49% in September 2024. It was at 4.87% in October 2023.

India's industrial production grew by 3.1% in September, according to official data released on Tuesday. In the previous month of August, the factory output, based on the Index of Industrial Production (IIP), was in the negative territory at (-) 0.1%. However, the IIP growth had stood at 6.4% in September 2023.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.22% to 6.912 as compared with previous close 6.897.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.4025, compared with its close of 84.3850 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement fell 0.82% to Rs 74,730.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.34% to 105.90.

The United States 10-year bond yield grew 0.34% to 4.366.

In the commodities market, Brent crude for November 2024 settlement gained 38 cents or 0.53% to $72.21 a barrel.

Global Markets:

European market declined as investors were cautious ahead of a fresh batch of economic data this week, including US Inflation numbers and UK's Gross Domestic Product (GDP).

German inflation rose 2.4% in October, according to data published Tuesday by the country's statistics office, confirming a preliminary reading. The harmonized index of consumer prices had risen 1.8% in September.

Asian stocks declined on Tuesday, with investors exercising caution even as the Dow Jones Industrial Average's post-election rally continued to gain momentum to close at a record high.

Traders in Asia-Pacific are also parsing a swathe of economic data in the region, including a survey from the National Australia Bank on business conditions and Indonesia's retail sales in September.

Concerns about potential trade tensions between the U.S. and China, particularly regarding tariffs on Chinese goods, contributed to the market's downturn.

The US stock market closed on a high note on Monday, with all major indexes hitting record highs. The Dow Jones Industrial Average surpassed the 44,000 mark for the first time, gaining 0.69% to 44,293.13. The S&P 500 and Nasdaq also rose, up 0.10% to 6,001.35 and 0.06% to 19,298.76, respectively.

Tesla's stock surged 9%, boosting its market value to over $1.1 trillion. Microsoft, Amazon, and Meta Platforms saw slight declines of around 1% each. Nvidia's stock fell 1.6%. Bitcoin miners MARA Holdings and Riot Platforms stocks rallied 30% and 17%, respectively.

While the market has been on a strong upward trend, investors are becoming cautious ahead of the release of key consumer price index (CPI) inflation data on Wednesday.

Stocks in Spotlight:

Britannia Industries declined 7.32% after the company's consolidated net profit fell 9.37% to Rs 531.55 crore in Q2 FY25 as compared with Rs 586.50 crore in Q2 FY24. Revenue from operations increased 4.48% YoY to Rs 4,566.23 crore during the quarter.

Uno Minda rallied 8.72% after the company's consolidated net profit rose 8.96% to Rs 245.15 crore on 17.21% jump in revenue from operation to Rs 4,244.79 crore in Q2 FY25 over Q2 FY24. The revenue growth was driven by all product segments especially led by lighting, alloy wheels, switches, sensors and controllers. The company continues to outperform the industry with revenue growth of 17% vis-a-vis industry volume growth of 9%.

Jubilant FoodWorks surged 5.86% after the company's net profit rose 17.6% to Rs 71.5 crore on 1.1% increase in revenue to Rs 1954.7 crore in Q2 September 2024 over Q1 June 2024. Profit before tax stood at Rs 86.99 crore in Q2 FY25, up 9.24% sequentially, but down 27.8% year-on-year. EBITDA was at Rs 398.6 crore in Q2FY25, up 4.1% sequentially, and 43.8% year-on-year. EBITDA margins were at 20.4% in Q2FY25 as against 20.3% in Q2FY24.

Hyundai Motor India fell 0.98% after the car maker's consolidated net profit decreased 15.54% to Rs 1,375.47 crore on 7.5% slide in revenue from operations to Rs 17,260.38 crore in Q2 FY25 over Q2 FY24.

Oil and Natural Gas Corporation (ONGC) shed 0.27%. The company reported 17.05% increase in standalone net profit to Rs 11,984.02 crore in Q2 FY25 as compared with Rs 10,238.10 crore in Q2 FY24. However, revenue from operations declined 3.6% YoY to Rs 33,880.88 crore in the quarter ended 30 September 2024.

HLE Glascoat surged 9.27% after the company's consolidated net profit jumped 33.27% to Rs 14.42 crore on 5.06% increase in revenue from operations to Rs 235.77 core in Q2 FY25 over Q2 FY24.

Hindalco Industries fell 0.61%. The company's consolidated net profit surged 78.01% to Rs 3,909 crore in on 7.45% increase in revenue from operations to Rs 58,203 crore in Q2 FY25 over Q2 FY24.

Shree Cement shed 0.24% after the cement maker's standalone net profit tumbled 81.05% to Rs 93.13 crore on 18.27% decrease in revenue from operations to Rs 3,727 crore in Q2 FY25 over Q2 FY24.

Zydus Lifesciences declined 1.90%. The pharma company's consolidated net profit jumped 13.80% to Rs 911.2 crore in Q2 FY25 as compared to Rs 800.7 crore posted in Q2 FY24. Revenue from operations grew 19.87% year on year (YoY) to Rs 5,237 crore in the quarter ended 30 September 2024.

Orient Technologies surged 8.54% after the company's standalone net profit rose 62.63% to Rs 15.06 crore on 49.35% increase in net sales to Rs 223.14 crore in Q2 September 2024 as over Q2 September 2023.

Electronics Mart India tumbled 10.71% after the company reported 34% fall in net profit to Rs 24.5 crore despite a 6% rise in total revenue to Rs 1,386.1 crore in Q2 FY25 as compared with Q2 FY24.

New Listing:

Shares of Sagility India closed at Rs 29.36 on the BSE, a discount of 2.13% compared with the issue price of Rs 30.

The scrip was listed at Rs 31.06, a premium of 3.53% to the issue price. The stock hit a high of 32.90 and a low of 28.95. On the BSE, over 1.70 crore shares of the company were traded in the counter.

Powered by Capital Market - Live News