Market Commentary - Mid-Session
Market opens on firm note; breadth strong As on : 06-Nov-24  09:36

The key equity indices traded with substantial gains in early trade. The Nifty traded above the 24,300 level. Barring the Nifty Metal index, all the other sectoral indices on the NSE traded in green.

At 09:30 IST, the barometer index, the S&P BSE Sensex rallied 385.98 points or 0.49% to 79,860.68. The Nifty 50 index rallied 122.75 points or 0.51% to 24,336.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.95% and the S&P BSE Small-Cap index gained 0.91%.

The market breadth was strong. On the BSE, 2,393 shares rose and 575 shares fell. A total of 113 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,569.41 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,030.96 crore in the Indian equity market on 5 November 2024, provisional data showed.

Stocks in Spotlight:

Titan Company slipped 3.06% 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.

Dr Reddy's Laboratories added 1.31%. The company's consolidated net profit decreased 15.28% to Rs 1,255.7 crore in Q2 FY25 as against Rs 1,482.2 crore posted in Q2 FY24. Total revenue from operations stood at Rs 8,038.2 crore in Q2 FY25, up 16.45% as against Rs 6,902.6 crore posted in Q2 FY24. The revenue growth was primarily driven by growth in global generics revenues.

Meanwhile, the company's board approved fund infusion by way of investment in equity shares of Dr. Reddy's Laboratories LLC, Russia, a step-down wholly-owned subsidiary, up to an amount of Rs 600 crore. The fund will be used for working capital requirements.

Mankind Pharma advanced 2.64% after the company's consolidated net profit jumped 28.96% to Rs 659 crore during the quarter as compared with Rs 511 crore in Q2 FY24. Revenue increased 13.58% YoY to Rs 3,076 crore during the quarter.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 0.31% to 6.933 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 84.1875, compared with its close of 84.0975 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement shed 0.22% to Rs 78,335.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 1.59% to 105.07.

The United States 10-year bond yield rallied 4.04% to 4.466.

In the commodities market, Brent crude for Jan 2025 settlement lost 67 cents or 0.89% to $74.86 a barrel.

Global Markets:

The Dow Jones index futures soars 603 points, signaling a strong opening for U.S. stocks today, as early vote counts showed Donald Trump leading Kamala Harris.

Asian stocks advanced on Wednesday, mirroring Wall Street's overnight gains, as markets monitored the results of a highly contested U.S. presidential election. Investors also focused on potential additional stimulus measures from China.

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.

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