Market Commentary - Mid-Session
Sensex, Nifty trade with robust gains; European mrkt opens higher As on : 06-Nov-24  13:33

The domestic equity indices continued to trade with major gains in afternoon trade as a clearer picture regarding the US Presidential elections emerges, traders are more confident regarding former President Donald Trump clinching victory. The Nifty traded above the 24,450 mark. All the other sectoral indices on the NSE were traded in green.

At 13:30 IST, the barometer index, the S&P BSE Sensex advanced 806.36 points or 1.01% to 80,280.61. The Nifty 50 index added 242.50 points or 1.00% to 24,454.90.

In the broader market, the S&P BSE Mid-Cap index rallied 1.92% and the S&P BSE Small-Cap index gained 1.70%.

The market breadth was strong. On the BSE, 2,891 shares rose and 984 shares fell. A total of 109 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 7.58% to 14.90.

Economy:

India's services activity growth recovered from September's ten-month low on sharper expansion in output and new business, final data from S&P Global showed on Wednesday. The HSBC final services Purchasing Managers' Index registered 58.5 in October, up from 57.7 in September. The flash score was 57.9.

New business growth accelerated from a ten-month low seen in September. Driven by strengthening demand from Africa, Asia, the US, the Middle East and the UK, new export sales recovered in October. Services employment increased at the quickest pace in 26 months. A sustained improvement in new business induced firms to hire full and part-time workers.

Regarding prices, the survey showed that input price inflation hit a three-month high and output price inflation picked up to the strongest since July and outpaced the series trend.

Indian private sector activity increased to a greater extent in October, owing to stronger growth at both goods producers and service providers. The HSBC composite output index rose to 59.1 from September's ten-month low of 58.3. The final score was above the initial estimate of 58.6.

IPO Update:

The initial public offer (IPO) of Swiggy received bids for 1,33,19,722 shares as against 16,01,09,703 shares on offer, according to stock exchange data at 13:25 IST on Wednesday (06 November 2024). The issue was subscribed 0.08 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.

Gainers & Losers:

Bharat Electronics (up 4.56%), Adani Enterprises (up 3.85%), Tata Consultancy Services (up 3.79%), Tech Mahindra (up 3.70%) and HCL Technologies (up 3.69%) were major Nifty gainers.

Indusind Bank (down 1.43%), Titan Company (down 1.37%), HDFC Life Insurance Company (down 1.07%), Sbi Life Insurance Company (down 0.99%) and Cipla (down 0.71%) were major Nifty losers.

Titan Company slipped 1.37% 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. Revenue from operations jumped 23.88% year on year (YoY) to Rs 12,268 crore in the quarter ended 30 September 2024.

Stocks in Spotlight:

Oil India rallied 6.01% after the petroleum business company's net profit zoomed 379.29% to Rs 2,016.20 crore in Q2 FY25 as against Rs 420.66 crore in Q2 FY24. Revenue from operations (excluding excise duty) fell 3.32% to Rs 7,247.03 crore in Q2 FY25 from Rs 7,496.51 crore reported in the same period a year ago.

Meanwhile, the company's board declared an interim dividend of Rs 3 per share for financial year 2024-25. The interim dividend declared shall be paid on or before 4 December 2024.

GAIL (India) jumped 6% after the company's consolidated net profit increased 10.13% to Rs 2,689.67 crore on 2.7% rise in revenue from operations (excluding excise duty) to Rs 33,888.90 in Q2 FY25 over Q2 FY24.

Mankind Pharma rose 0.16%. The company's consolidated net profit surged 30.43% to Rs 653.47 crore on a 13.6% rise in revenue to Rs 3,076.51 crore in Q2 FY25, compared to Q2 FY24.

Berger Paints added 1.38%. The paint major's consolidated net profit decrease 7.53% to Rs 269.66 crore in Q2 FY25 as against Rs 291.64 crore posted in Q2 FY24. Revenue from operations rose marginally to Rs 2,774.61 crore in Q2 FY25 as against Rs 2,767.30 crore posted in Q2 FY24.

Raymond Lifestyle dropped 7.54% after the company reported weak Q2 September 2024 earnings. On a consolidated basis, the company's net profit dropped 69.7% to Rs 42.18 crore on a 5.3% decline in net sales to Rs 1708.26 crore in Q2 September 2024 over Q2 September 2023.

Indian Energy Exchange (IEX) rose 2.40% after the company informed that it has achieved electricity volume of 9,642 million units (MU) in October 2024, registering a growth of 4% YoY basis.

Triveni Engineering & Industries declined 2.27% after the company reported consolidated net loss of Rs 19.20 crore in Q2 FY25 as against net profit of Rs 29.11 crore posted in Q2 FY24. Revenue from operations (excluding Excise duty) increased 5.83% YoY to Rs 1,490.95 crore during the quarter.

Global Markets:

The Dow Jones index futures soars 813 points, signaling a strong opening for U.S. stocks today, as early vote counts showed Donald Trump leading Kamala Harris.

European stocks advanced on Wedneday as global markets focus on the vote count following the U.S. presidential election.

Asian stocks traded mixed on Wednesday after Wall Street surged overnight ahead of the U.S. presidential election results.

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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