Market Commentary - Mid-Session
Indices trade with deep cuts; metal shares lose shine As on : 21-Nov-24  11:31

The domestic equity benchmarks traded with major losses in mid-morning trade. The Nifty dropped below the 23,350 mark. Metal shares extended losses for the second consecutive trading session. Trading could be volatile due to weekly F&O series expiry today.

At 11:26 IST, the barometer index, the S&P BSE Sensex declined 520.63 points or 0.67% to 77,057.75. The Nifty 50 index lost 185.60 points or 0.79% to 23,332.90.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index shed 0.20% and the S&P BSE Small-Cap index fell 0.57%.

The market breadth was weak. On the BSE, 1,089 shares rose and 2,685 shares fell. A total of 141 shares were unchanged.

IPO Update:

The initial public offer (IPO) of NTPC Green Energy received bids for 28,19,36,760 shares as against 59,31,67,575 shares on offer, according to stock exchange data at 11:15 IST on 21 November 2024. The issue was subscribed 0.48 times.

The issue opened for bidding on 19 November 2024 and it will close on 22 November 2024. The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Metal index dropped 2.05% to 8,737.70. The index dropped 2.87% in two consecutive trading sessions.

Adani Enterprises (down 22.26%), Jindal Stainless (down 3.94%), APL Apollo Tubes (down 1.16%), NMDC (down 0.98%), Welspun Corp (down 0.82%), Hindustan Zinc (down 0.58%), JSW Steel (down 0.46%), Hindustan Copper (down 0.38%), Vedanta (down 0.33%) and Steel Authority of India (down 0.09%) declined.

On the other hand, National Aluminium Company (up 3.85%), Ratnamani Metals & Tubes (up 2.62%) and Hindalco Industries (up 1.35%) edged higher.

Stocks in Spotlight:

NBCC (India) slipped 1.79%. The company said that it has bagged a contract worth Rs 202 crore from Rajasthan State Industrial Development & Investment Corporation (RIICO).

Bharat Global Developers was locked in upper circuit of 5% after the company's Dubai based wholly-owned subsidiary received orders for processing and supplying worth Rs 251 crore.

Global Markets:

Asian stocks traded mixed on Thursday, dampened by mixed signals from Nvidia's earnings report and heightened geopolitical tensions. Investors remained cautious, with concerns over Russia-Ukraine conflict weighing on sentiment.

U.S. stocks closed mixed on Wednesday, with Target's disappointing earnings and Nvidia's tempered guidance impacting investor sentiment. While the Dow Jones Industrial Average gained 0.32%, the S&P 500 index ended flat%, and the NASDAQ Composite index fell 0.11%.

Investors were rattled by a nearly 22% slide in Target after the retailer missed expectations for its September quarter earnings. Target steadied in evening trade, although its earnings also raised some questions over weakening retail spending.

Nvidia shares fell more than 1% in aftermarket trade to around $144.0, trimming some losses after falling as much as 2% just after its earnings. Earnings per share rose to $0.81 on revenue of $35.1 billion, higher than expectations of $0.75 in EPS and $33.09 billion in revenue.

Nvidia's quarterly results, while exceeding expectations, fell short of some analysts' hopes for a more significant beat. The company's guidance for the fourth quarter, though slightly above estimates, hinted at a slower pace of revenue growth, raising questions about the sustainability of AI-driven demand. This cautious outlook tempered investor enthusiasm and contributed to the broader market's subdued performance.

Market participants are now focused on a series of U.S. economic indicators, including jobless claims, home sales data, and the Purchasing Managers' Index (PMI). Additionally, several Federal Reserve officials are scheduled to speak, providing insights into the central bank's monetary policy outlook.

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