Market Commentary - Mid-Session
Indices edge higher; breadth weak As on : 22-Oct-24  09:31

The frontline indices traded with small gains in early trade. The Nifty traded above the 24,750 mark.Realty, PSU Bank and Auto stocks declined while IT, financial services and consumer durable shares advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex, advanced 118.15 points or 0.15% to 81,269.42. The Nifty 50 index added 16.60 points or 0.07% to 24,797.70.

In the broader market, the S&P BSE Mid-Cap index fell 0.11% and the S&P BSE Small-Cap index shed 0.78%.

The market breadth was weak. On the BSE, 926 shares rose and 1,885 shares fell. A total of 124 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,261.83 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,225.91 crore in the Indian equity market on 21 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 88244.72 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.80% to 6.960 as compared with previous close 6.957.

In the foreign exchange market, the rupee was flat. The partially convertible rupee was hovering at 84.0750, compared with its close of 84.0750 during the previous trading session.

MCX Gold futures for 31 October 2024 settlement rose 0.21% to Rs 78,175.

The United States 10-year bond yield rose 0.60% to 4.212.

In the commodities market, Brent crude for December 2024 settlement shed 18 cents or 0.24% to $74.11 a barrel.

Stocks in Spotlight:

City Union Bank rallied 9.65% after the company reported 1.42% jump in standalone net profit to Rs 285 crore in Q2 FY25. Net interest income (NII) increased 8% YoY to Rs 582 crore during the quarter.

Bajaj Housing Finance rose 1.65% after the company's net profit jumped 21% to Rs 546 crore in Q2 FY25 as compared with Rs 451 crore same quarter last year. Net interest income (NII) jumped 12.99% to Rs 713 crore in Q2 FY25 as compared with Rs 631 crore in Q2 FY24.

Cyient DLM declined 1.92%. The company's consolidated net profit increased 5% to Rs 15.45 crore during the quarter as compared with Rs 14.65 crore posted in corresponding quarter last year. Revenue increased 33.4% YoY to Rs 389.45 crore during the quarter.

Global Markets:

Asian markets traded mixed on Tuesday. While Chinese stocks advanced following a rate cut, most other Asian exchanges declined amid concerns about interest rates and the upcoming U.S. presidential election.

In Japan, investors await general elections and a Bank of Japan (BoJ) meeting at the end of October. Tokyo's inflation data, due later this week, will likely influence expectations for Japanese interest rates.

Wall Street's retreat from record highs also weighed on regional sentiment. Rising Treasury yields and the looming earnings season contributed to the S&P 500's 0.18% decline. The Dow Jones Industrial Average fell 0.8%, while the NASDAQ Composite gained 0.27%.

NVIDIA Corporation's 4% surge to a new all-time high, boosting its market cap above $3.5 trillion, helped mitigate broader market losses as investors anticipated the start of big tech earnings season.

With the U.S. presidential elections less than two weeks away, investors were keenly focused on that event. Additionally, a series of major U.S. corporate earnings reports were expected to shape market sentiment.

In the Middle East, Israel's ongoing offensive against Hamas and Hezbollah continued to garner significant attention. Concerns about a potential Israeli strike on Iran also remained prominent.

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