Market Commentary - Mid-Session
Market trade sideways; European mrkt opens higher As on : 14-Nov-24  13:34

The key domestic indices traded sideways in early afternoon trade. The Nifty traded above the 23,550 mark. Barring FMCG index all the indices on the NSE were traded in green.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 61.39 points or 0.08% to 77,629.56. The Nifty 50 index added 0.70 points or 0.0% to 23,558.35.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 0.88% and the S&P BSE Small-Cap index jumped 1.38%.

The market breadth was positive. On the BSE, 2,297 shares rose and 1,573 shares fell. A total of 100 shares were unchanged.

Economy:

The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.36% (Provisional) for the month of October, 2024 (over October, 2023). Inflation in October, 2024 is primarily due to increase in prices of food articles, manufacture of food products, other manufacturing, manufacture of machinery & equipment, manufacture of motor vehicles, trailers & semi-trailers, etc.

The month-on-month change in WPI for October 2024 showed a rise of 0.97% compared to September 2024.

Gainer & Losers:

Eicher Motors (up 7.20%), Hero Motocorp (up 1.97%), Hindalco Industries (up 0.25%), Coal India (up 1.18%) and Reliance Insudtries (up 1.17%) were major Nifty gainers.

Eicher Motors jumped 7.20% after the company's consolidated net profit increased 8.27% to Rs 1,100.33 crore on 3.8% increase in revenue from operations to Rs 4,186.38 crore in Q2 FY25 over Q2 FY24.

Hindustan Unilever (down 3%), Bharat Petroleum Corporation (BPCL) (down 2.11%), Britannia Industries (down 2.04%), Shriram Finance (down 1.93%) and Tata Consumer Products (down 1.89%) were major Nifty losers.

Stocks in Spotlight:

Varun Beverages added 1.44% after the company's board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 594.56 per share.

Apollo Tyres rallied 4%. The company reported 37.27% decline in consolidated net profit to Rs 297.46 crore in Q2 FY25 as against Rs 474.25 crore recorded in Q2 FY24. However, revenue from operations grew by 2.50% to Rs 6,437.03 crore in the quarter ended 30 September 2024.

SpiceJet jumped 4.36% after the firm fully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of $22.5 million, resulting in a substantial saving of $68.3 million (Rs 574 crore).

Vodafone Idea rose 0.14%. The telecom service provider's consolidated net loss narrowed to Rs 7,175.9 crore in Q2 FY25 as compared with Rs 8,737.9 crore reported in Q2 FY24. Revenue from operations rose 2.01% year on year (YoY) to Rs 10,932.2 crore in the quarter ended 30 September 2024.

Godrej Industries added 0.55%. The company's consolidated net profit surged 229.5% to Rs 287.62 crore in Q2 FY25 as compared with Rs 87.30 crore in Q2 FY24. Revenue from operations jumped 22% YoY to Rs 4,804.96 crore in Q2 FY25.

AstraZeneca Pharma tumbled 4.37% after the pharmaceutical firm's net profit declined 26.62% to Rs 38.43 crore in Q2 FY25 as compared with Rs 52.37 crore posted in Q2 FY24. Revenue from operations jumped 31.16% year on year (YoY) to Rs 408 crore in the quarter ended 30 September 2024, by increase in demonstrating company's focus on improving access to patients.

Global Markets:

Most of the European stocks advanced as investors assessed the global inflation outlook and the possible trajectory of central bank rate cuts.

Asian stocks traded mixed on Thursday after the U.S. October consumer price index reading reinforced expectations that the Fed would cuts rates again in December.

The initial post-election rally in US equities appears to be waning. On Wednesday, the Dow Jones Industrial Average added 0.11%, while the S&P 500 index climbed 0.02%, and the NASDAQ Composite index lost 0.23%.

US consumer price index (CPI) data for October came in line with expectations, but still indicated persistent inflationary pressures. The annual CPI rose to 2.6% from 2.4% in September. Core CPI, which excludes volatile food and energy prices, increased to 3.3% year-over-year.

While these figures still support the case for a December rate cut by the Federal Reserve, the longer-term outlook for interest rates remains uncertain, especially given the potential inflationary impact of Trump's policies.

Investors are now awaiting a speech by Fed Chair Jerome Powell for further guidance on monetary policy. The Fed cut rates by 25 basis points last week and reaffirmed its data-dependent approach to future easing.

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