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Market drifts lower; breadth negative
Nov 08,2024
The headline equity benchmarks traded with moderate losses in early trade. The Nifty traded below the 24,200 level. Oil & gas, media and auto shares declined while IT, metal and consumer durables stocks advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex slipped 144.64 points or 0.18% to 79,397.15. The Nifty 50 index lost 46.05 points or 0.19% to 24,153.30.

In the broader market, the S&P BSE Mid-Cap index shed 0.17% and the S&P BSE Small-Cap index declined 0.50%.

The market breadth was negative. On the BSE, 1,177 shares rose and 1,723 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,888.77 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,786.70 crore in the Indian equity market on 7 November 2024, provisional data showed.

Stocks in Spotlight:

Lupin shed 0.31%. The company’s consolidated net profit jumped 74.1% to Rs 852.63 crore in Q2 FY25 as compared with Rs 489.67 crore in Q2 FY24. Revenue increased 11.3% YoY to Rs 5497.01 crore in Q2 FY24.

Indian Hotels rallied 3.26% after the company’s consolidated net profit surged to Rs 554.58 crore during the quarter as compared with Rs 166.92 crore in Q2 FY24. Revenue jumped 27.4% to Rs 1826.12 crore in Q2 FY25.

Steel Authority of India (SAIL) slipped 4.42% after the company reported 31.3% decline in consolidated net profit to Rs 897.15 crore on 17% fall in revenue to Rs 24,675.20 crore in Q2 FY25 over Q2 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.14% to 6.898 as compared with previous close 6.908.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.3725, compared with its close of 84.3250 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement fell 0.07% to Rs 77,355.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 104.54.

The United States 10-year bond yield lost 0.32% to to 4.328.

In the commodities market, Brent crude for Jan 2025 settlement declined 40 cents or 0.53% to $75.23 a barrel.

Global Markets:

Most Asian shares advanced on Friday after stocks, bonds, and commodities rallied in the US following a Federal Reserve interest rate cut by 25 basis points to a range of 4.5% to 4.75% on Thursday, a move that was widely anticipated.

Fed Chair Jerome Powell stated that the recent presidential election outcome would have no immediate impact on monetary policy. He emphasized that the Fed will continue to rely on a data-driven approach for future decisions, noting that inflation is cooling as expected, while economic growth remains strong.

In Europe, the Bank of England cut interest rates on Thursday for only the second time since 2020 and said future reductions were likely to be gradual, seeing higher inflation and growth after the new government's first budget. The Monetary Policy Committee voted 8-1 to cut interest rates to 4.75% from 5%.

Investors are now focused on China, where a legislative meeting is concluding and may result in new stimulus measures. While Trump's victory has introduced tariff concerns for China and other developing economies, optimism remains high that Chinese authorities will announce measures to counter potential trade impacts from the US.

In the US, stock indices mostly gained on Thursday, extending the recent rally spurred by Trump’s victory. The S&P 500 rose 0.74% to a record 5,973.10 points, and the NASDAQ Composite climbed 1.51% to reach a record 19,269.36 points. The Dow Jones Industrial Average remained flat at 43,729.34 points but stayed close to a record high.

Trump's victory, coupled with a Republican majority in Congress, suggests fewer obstacles for the 47th President in enacting significant policy reforms. He is expected to pursue a looser fiscal policy, while his protectionist trade and immigration stances are anticipated to strengthen the dollar.