Market Commentary - Mid-Session
Indices trade with deep cuts; Apollo Hospitals jumps over 6% As on : 07-Nov-24  13:33

The domestic equity benchmarks continued to trade with steep losses in afternoon trade. The Nifty traded around the 24,200 level. Media and PSU bank shares advanced while metal, pharma and FMCG stocks corrected.

At 13:30 IST, the barometer index, the S&P BSE Sensex dropped 810.05 points or 1.01% to 79,568.08. The Nifty 50 index fell 283.10 points or 1.16% to 24,200.95.

In the broader market, the S&P BSE Mid-Cap index fell 0.54% and the S&P BSE Small-Cap index shed 0.25%.

The market breadth was positive. On the BSE, 1,875 shares rose and 1,985 shares fell. A total of 129 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Swiggy received bids for 3,91,25,674 shares as against 16,01,09,703 shares on offer, according to stock exchange data at 13:06 IST on Thursday (6 November 2024). The issue was subscribed 0.24 times.

The issue opened for bidding on Wednesday (6 November 2024) and it will close on Friday (8 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:

Apollo Hospitals Enterprise (up 6.55%), HDFC Life Insurance Company (up 0.59%), Tata Consultancy Services (up 0.16%), Larsen & Toubro (up 0.14%) and Wipro (up 0.09%) were major Nifty gainers.

Hindalco Industries (down 8.27%), Trent (down 7.75%), Shriram Finance (down 2.83%), Grasim Industries (down 2.63%) and Tech Mahindra (down 2.57%) were major Nifty losers.

Apollo Hospitals Enterprise jumped 6.55% after the company reported 62.64% surge in consolidated net profit to Rs 378.8 crore in Q2 FY25 as against Rs 232.9 crore posted in Q2 FY24. Revenue from operations increased 15.31% year on year (YoY) to Rs 5,589.3 crore in the quarter ended 30 September 2024.

Hindalco Industries tumbled 8.27% to Rs 649.10 after the company's subsidiary Novelis Inc. reported 18% drop in net income to $128 million in the second quarter of fiscal year 2025. Net sales for the second quarter of fiscal year 2025 increased 5% versus the prior year period to $4.3 billion, mainly driven by higher average aluminum prices and a 1% increase in total flat rolled product shipments to 945 kilotonnes.

Stocks in Spotlight:

Tata Steel declined 1.73%. The company reported consolidated net profit of Rs 758.84 crore in Q2 FY25 as compared with net loss of Rs 6,511.16 crore in Q2 FY24. Revenue fell 3.19% YoY to Rs 53,904.71 crore during the quarter.

Mahindra & Mahindra fell 0.31%. The auto major reported 13.2% rise in standalone net profit to Rs 3,840.88 crore on 12.25% increase in income from operations to Rs 28,919.34 crore in Q2 FY25 over Q2 FY24.

TeamLease Services declined 4.07% after the company's consolidated net profit declined 28% to Rs 25 crore despite of 8% increase in revenue from operations to Rs 2,797 crore in Q2 FY25 over Q2 FY24.

Global Markets:

European and Most Asian stocks advanced on Thursday after former President Donald Trump won the White House, defeating Vice President Kamala Harris in the 2024 presidential election. The focus is now on potential stimulus measures from China and monetary policy decisions from the U.S. Federal Reserve and Bank of England.

While most Asian markets saw significant gains on Wednesday, Chinese stocks were more subdued due to concerns over potential strict trade tariffs. Trump has pledged to impose a 60% tariff on all Chinese imports. Attention is now on the meeting of China's National People's Congress, which began earlier this week, for insights into possible fiscal stimulus measures.

Regional markets received limited positive influence from a strong session on Wall Street, where U.S. benchmark indexes reached record levels following Trump's victory. The S&P 500 increased by 2.5% to a record high of 5,929.04 points, the NASDAQ Composite rose 2.9% to 18,978.65 points, and the Dow Jones Industrial Average surged 3.6% to 43,729.93 points, marking its best day since 2022.

Trump Media & Technology Group, owner of the Truth Social platform, saw its shares rise by 6%. Tesla's stock jumped over 14%, as the company is perceived as a major beneficiary of Trump's win, partly due to Elon Musk's support of Trump's campaign. Financial stocks like Citigroup, Bank of America, and Wells Fargo experienced strong gains as investors speculated that Trump's presidency would lead to decreased regulation in the banking sector.

Investors are now awaiting the outcome of a Federal Reserve meeting later on Thursday for more guidance on interest rates. The Fed is expected to cut rates by 25 basis points, though the outlook remains uncertain amid Trump's presidency and persistent inflationary pressures.

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