Market Commentary - Mid-Session
Indices drift lower; Nifty below 23,850 mark As on : 13-Nov-24  09:37

The key equity indices traded with minor losses in early trade. The Nifty traded tanked the 23,850 mark. Bank, financial services and private bank stocks advanced while auto, pharma and media shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 142.30 points or 0.17% to 78,544.30. The Nifty 50 index lost 75 points or 0.31% to 23,837.85.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index shed 0.80% and the S&P BSE Small-Cap index fell 1.33%.

The market breadth was negative. On the BSE, 983 shares rose and 1,493 shares fell. A total of 111 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,024.31 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,854.46 crore in the Indian equity market on 12 November 2024, provisional data showed.

Economy:

India's retail inflation, based on the Consumer Price Index (CPI), in October 2024 surged to a 14-month high of 6.21%, according to the latest official data released on Tuesday. India's retail inflation had stood at a nine-month high of 5.49% in September 2024. It was at 4.87% in October 2023.

India's industrial production grew by 3.1% in September, according to official data released on Tuesday. In the previous month of August, the factory output, based on the Index of Industrial Production (IIP), was in the negative territory at (-) 0.1%. However, the IIP growth had stood at 6.4% in September 2023.

Stocks in Spotlight:

Power Mech Projects fell 1.65%. The company reported 35.60% jump in consolidated net profit to Rs 69.51 crore on 11.04% increased in revenue from operations to Rs 1,035.49 crore in Q2 FY25 over Q2 FY24.

Sula Vineyards tumbled 6.05% after the company reported 37.3% decline in consolidated net profit to Rs 14.48 crore on 1% fall in revenue from operations to Rs 132.36 crore in Q2 FY25 over Q2 FY24.

Cello World declined 4.41%. The company's consolidated net profit increased 2.1% YoY to Rs 81.64 crore in Q2 FY25. Revenue from operations increased marginally to Rs 490.06 crore in Q2 FY25 as compared with Rs 488.96 crore in Q2 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.87% to 6.922 as compared with previous close 6.907.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3975, compared with its close of 84.3900 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.36% to Rs 75,869.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 105.96.

The United States 10-year bond yield rose 0.02% to 4.437.

In the commodities market, Brent crude for January 2024 settlement added 28 cents or 0.39% to $72.17 a barrel.

Global Markets:

Asian stocks tumbled on Wednesday, mirroring losses on Wall Street. The post-election rally seems to be losing steam, and investors are growing cautious ahead of crucial U.S. inflation data.

Asian traders assessed corporate goods data out of Japan, which showed year-on-year producer price growth, or wholesale inflation, in October reached its highest since July last year at 3.4%.

China's recent fiscal measures failed to significantly boost regional markets, while uncertainty surrounding global trade relations continues to dampen sentiment.

Wall Street benchmarks retreated from record highs on Tuesday after a strong post-election run. At the close in NYSE, the Dow Jones Industrial Average lost 0.86%, while the S&P 500 index fell 0.29%, and the NASDAQ Composite index declined 0.09%.

Key Federal Reserve officials' hawkish comments, particularly Minneapolis Fed President Neel Kashkari's warning about potential rate hikes, added to the negative sentiment.

Investors are now focused on the upcoming U.S. consumer price index (CPI) data due later on Wednesday, which is expected to reveal persistent inflation in October.

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