Market Commentary - Mid-Session
Sensex jumps 530 pts; financial services in demand As on : 11-Nov-24  11:35

The equity benchmarks traded with decent gains in mid-morning trade. The Nifty traded above the 24,300 level. Financial services shares advanced after declining in the past two trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 529.86 points or 0.67% to 80,008.54. The Nifty 50 index added 168.05 points or 0.70% to 24,316.25.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% and the S&P BSE Small-Cap index fell 0.29%.

The market breadth was negative. On the BSE, 1,777 shares rose and 2,087 shares fell. A total of 159 shares were unchanged.

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.

IPO Update:

The initial public offer (IPO) of Niva Bupa Health Insurance Company received bids for 12,18,29,800 shares as against 17,28,57,143 shares on offer, according to stock exchange data at 11:18 IST on Monday (11 November 2024). The issue was subscribed 1.31 times.

The issue opened for bidding on Thursday (07 November 2024) and it will close on Monday (11 November 2024). The price band of the IPO is fixed between Rs 70 to Rs 74 per share. An investor can bid for a minimum of 200 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Financial Services index rose 1.17% to 24,112.90. The index shed 0.60% in past two trading sessions.

Power Finance Corporation (up 8.18%), REC (up 4.44%), HDFC Bank (up 1.46%), State Bank of India (up 1.19%) and ICICI Bank (up 1.08%), Shriram Finance (up 1.02%), Kotak Mahindra Bank (up 0.86%), Axis Bank (up 0.81%), Cholamandalam Investment & Finance Company (up 0.66%) and Muthoot Finance (up 0.61%) advanced.

On the other hand, LIC Housing Finance (down 1.09%), SBI Cards & Payment Services (down 0.6%) and Bajaj Finance (down 0.49%) edged lower.

Power Finance Corporation (PFC) surged 8.18% after its consolidated net profit rose 8.85% to Rs 7,214.90 crore on 14.96% increase in total revenue from operations to Rs 25,721.79 crore in Q2 FY25 over Q2 FY24.

Stocks in Spotlight:

C.E. Info Systems (MapMyIndia) tumbled 7.09% after the company reported 8.20% decline in consolidated net profit to Rs 30.33 crore in Q2 FY25 as against Rs 33.04 crore posted in Q2 FY24.

Utkarsh Small Finance bank fell 4.82% after the company's standalone net profit tumbled 55.08% to Rs 51.39 crore in Q2 FY25 as against Rs 114.42 crore recorded in Q2 FY24. Total income jumped 26.47% YoY to Rs 1,089.54 crore in the quarter ended 30 September 2024.

Aarti Industries slipped 7.90% after the company reported 42.86% decline in consolidated net profit to Rs 52 crore in Q2 FY25 as against Rs 91 crore posted in Q2 FY24. Revenue from operations jumped 11.97% year on year (YoY) to Rs 1,628 crore in Q2 FY25.

Global Markets:

Most Asian stocks declined after China's latest stimulus measures underwhelmed and its October inflation numbers came in lower than expected, prompting concerns over the recovery in the world's second-largest economy.

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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