Market Commentary - Mid-Session
Indices open lower in early trade; Nifty below 24,150 As on : 11-Nov-24  09:34

The frontline indices traded with small losses in early trade. The Nifty traded below the 24,150 mark. Auto, IT and financial services shares advanced while oil & gas, metal and media shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 43.95 points or 0.06% to 79,431.12. The Nifty 50 index lost 15.60 points or 0.06% to 24,132.60.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index shed 0.60% and the S&P BSE Small-Cap index fell 1.03%.

The market breadth was negative. On the BSE, 1,227 shares rose and 1,892 shares fell. A total of 127 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,404.04 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,748.44 crore in the Indian equity market on 8 November 2024, provisional data showed.

Economy:

India's forex reserves declined by USD 2.675 billion to USD 682.13 billion for the week ended November 1, the RBI said on Friday.

In the previous reporting week, the overall reserves had dropped by USD 3.463 billion to USD 684.805 billion.

For the week ended November 1, foreign currency assets, a major component of the reserves, decreased by $3.902 billion to $589.849 billion, the data released on Friday showed.

Gold reserves increased by $1.224 billion to $69.751 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $1 million to $18.219 billion, the apex bank said.

India's reserve position with the IMF was up by $4 million to $4.311 billion in the reporting week, the data showed.

Stocks in Spotlight:

Life Insurance Corporation of India (LIC) rose 0.38%. The company's standalone net profit declined 3.84% to Rs 7,620.86 crore despite of 11.64% increase in total premium income to Rs 1,19,900.99 crore in Q2 FY25 over Q2 FY24.

Divi's Laboratories fell 0.40%. The company's consolidated net profit jumped 46.55% to Rs 510 crore on 22.47% increase in revenue from operations to Rs 2,338 crore in Q2 FY25 over Q2 FY24. Total income grew by 22.51% year on year (YoY) to Rs 2,444 crore in the quarter ended 30 September 2024.

Asian Paints tumbled 8.47%. The company reported 42.37% decline in consolidated net profit to Rs 694.64 crore in Q2 FY25 as against Rs 1,205.42 crore reported in Q2 FY24. Revenue from operations stood at Rs 8,003.02 crore in Q2 FY25, down 5.31% from Rs 8,451.93 crore recorded in the corresponding quarter previous year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.87% to 6.901 as compared with previous close 6.774.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3850, compared with its close of 84.3700 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement shed 0.64% to Rs 76,775.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 105.06.

The United States 10-year bond yield added 0.93% to 4.350.

In the commodities market, Brent crude for January 2024 settlement fell 29 cents or 0.39% to $73.58 a barrel.

Global Markets:

Asian markets tumbled to stimulate the economy. Concerns over deflationary pressures and a slowdown in foreign direct investment also weighed on sentiment.

Meanwhile, Bitcoin surged past $81,000, driven by the incoming president's support for digital assets and the election of pro-crypto lawmakers. Oil prices declined further, extending losses from the previous session, as weak demand from China continued to dampen market sentiment.

In the US, the S&P 500 reached a new record high, driven by optimism surrounding the potential economic benefits of a second term for the incumbent US president. The S&P 500 rose 0.38% to 5,995.54 points on Friday. The Dow Jones Industrial Average rose 0.59% to 43,988.99 points, while the NASDAQ Composite rose 0.09% to 19,286.78 points.

Tesla's stock surged over 8%, boosting its market valuation above $1 trillion, while Airbnb shares fell more than 8% following a mixed quarterly earnings report.

The University of Michigan's Consumer Sentiment reading climbed to 73 in November, up from 70.5 last month, reflecting increased optimism about the economy.

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