Market Commentary - Mid-Session
Indices trade with deep cuts; Hero MotoCorp tumbles over 5% As on : 04-Nov-24  13:37

The domestic equity indices continued to trade with significant losses in afternoon trade. The Nifty traded below the 23,900 level. All the sectoral indices are trading in the red with PSU Bank, media, metal, oil & gas, power, realty down 2-3%.

At 13:30 IST, the barometer index, the S&P BSE Sensex slumped 1,297.61 points or 1.63% to 78,426.51. The Nifty 50 index tumbled 421 points or 1.73% to 23,883.35.

In the broader market, the S&P BSE Mid-Cap index declined 1.44% and the S&P BSE Small-Cap index fell 1.80%.

The market breadth was weak. On the BSE, 1,108 shares rose and 2,824 shares fell. A total of 130 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 7.45% to 17.09.

Economy:

The HSBC final Manufacturing Purchasing Managers' Index rose to 57.5 in October from an eight-month low of 56.5 in September. The flash reading was 57.4. A score above 50.0 indicates expansion.

Finally, manufacturers became more optimistic regarding future output volumes. The level of positive sentiment was above the average seen over the 13-and-a-half-year series history. <> Meanwhile, India's forex reserves declined by $3.463 billion to $684.805 billion in the week ended October 25, according to the latest data from the RBI. For the week ended October 25, foreign currency assets, a major component of the reserves, decreased by $4.484 billion to $593.751 billion.

Gold reserves increased by $1.082 billion to $68.527 billion during the week, the RBI said.

RBI has released monthly data on India's International Trade in Services for the Month of September 2024 on Thursday. The value of exports and imports of services during September 2024 stood at $ 32,579 million, up 14.6% on year and $16,507 million, up 13.2%, respectively.

Gainers & Losers:

Mahindra and Mahindra (up 1.83%), Cipla (up 1.56%), Tech Mahindra (up 1.54%), Dr Reddy's Laboratories (up 0.32%) and Indusind Bank (up 0.24%) were major Nifty gainers.

Hero Motocorp (down 5.31%), Bajaj Auto (down 4.69%), Oil and Natural Gas Corporation (ONGC) (down 3.99%), Grasim Industries (down 3.96%) and Adani Ports and Special Economic Zone (down 3.80%) were major Nifty losers.

Mahindra & Mahindra added 1.83% after the auto major's overall auto sales grew by 19.79% to 96,648 vehicles sold in October 2024 as against 80,679 vehicles sold in October 2023.'

Bajaj Auto slumped 4.69%. The company reported 2% rise in total auto sales to 4,79,707 units in October 2024 as against 4,71,188 units in October 2023.

Adani Ports and Special Economic Zone fell 3.80%. The company said that it had handled 37.9 MMT of total cargo in October 2024, which is higher by 2.43% as compared with 37 MMT of cargo handled in October 2023.

Stocks in Spotlight:

Welspun Corp added 1% after the company said that it has received two large orders in the USA, cumulatively valued at approximately Rs 1300 crore for supply of coated HSAW pipes for natural gas pipeline projects.

Ashok Leyland fell 1.39% after the company has reported total vehicle sales of 15,310 units for the month of October 2024, which is lower by 9% as compared with the sales of 16,864 units sold in October 2023.

Zen Technologies shed 0.29%. The company reported standalone net profit of Rs 17.34 crore in Q2 FY25, zoomed 276.18% to Rs 65.23 crore posted in Q2 FY24. Revenue from operations spiked 277.44% year on year (YoY) to Rs 241.68 crore in the quarter ended September 2024.

Sun Pharmaceutical Industries slipped 3.09% after the US District Court of New Jersey has decided to grant a preliminary injunction delaying the launch of Leqselvi (Baldness treatment) in the US.

Global Markets:

European shares declined while Most Asian stocks rose on Monday as investors geared up for a busy week that includes the U.S. presidential election and the Federal Reserve's monetary policy meeting.

Traders will also closely watch China's parliament meeting that kicked off on Monday. Chinese authorities are expected to announce more details on fiscal support when the meeting concludes on Friday.

Chinese stocks were upbeat as the National People's Congress Standing Committee began a four-day meeting. The body is expected to outline further fiscal spending measures.

In the US, the S&P 500 closed higher on Friday as a significant miss on job gains in the October payrolls report solidified expectations of a Fed rate cut next week. A rally in Amazon also lifted consumer stocks. The S&P 500 gained 0.4% to 5,728.8 points, the NASDAQ Composite rose 0.8% to 18,239.92 points, and the Dow Jones Industrial Average increased 0.7% to 42,052.19 points.

The US economy added only 12,000 jobs in October, far below the expected 106,000 and a sharp decline from the revised 223,000 in September. However, these figures were impacted by recent hurricanes and ongoing labor actions. The softer-than-expected payrolls data has intensified expectations of further interest rate cuts by the Federal Reserve.

All eyes are on the Federal Reserve's meeting this week, where the central bank is widely anticipated to implement a 25-basis-point interest rate cut, following a 50-basis-point reduction in September.

After the market closed on Thursday, tech giants Apple and Amazon released their quarterly results. Apple's stock fell more than 1% after the company's revenue outlook for the current quarter was projected in the low- to mid-single-digit range, potentially signaling caution ahead of the holiday shopping season.

In contrast, Amazon's stock surged over 6% as the e-commerce giant reported an 11% year-over-year increase in overall quarterly revenue, benefiting from once-in-a-lifetime opportunities presented by generative AI.

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