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TVS Motor Company Ltd
Indices trade with minor cuts; FMCG shares slide
Oct 24,2024
The domestic equity benchmarks traded with minor losses in mid-morning trade. The Nifty traded below the 24,450 mark after hitting the day’s high of 24,480.65 in early trade. FMCG shares declined after advancing in the past trading session. Trading could be volatile due to weekly F&O series expiry today.

At 11:30 IST, the barometer index, the S&P BSE Sensex, shed 39.86 points or 0.05% to 80,042.12. The Nifty 50 index lost 28.05 points or 0.11% to 24,407.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.08% and the S&P BSE Small-Cap index shed 0.15%.

The market breadth was negative. On the BSE, 1,716 shares rose and 1,977 shares fell. A total of 138 shares were unchanged.

Economy:

India's private sector economy continued to showcase robust growth in October, according to the latest HSBC ‘flash’ PMI survey compiled by S&P Global.

The HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors stood at 58.6 in October 2024 as compared with 58.3 in September 2024. Manufacturers outperformed service providers regarding rates of expansion for output and sales, and also recorded faster increases in input costs and selling charges.

The HSBC Flash India Manufacturing PMI – a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases – recovered from September's eight-month low of 56.5 to 57.4 in October.

IPO Update:

The initial public offer (IPO) of Godavari Biorefineries received bids for 45,03,072 shares as against 1,12,74,739 shares on offer, according to stock exchange data at 11:20 IST on Thursday (24 October 2024). The issue was subscribed 0.40 times.

The issue opened for bidding on Wednesday (23 October 2024) and it will close on Friday (25 October 2024). The price band of the IPO is fixed between Rs 334 to Rs 352 per share. An investor can bid for a minimum of 42 equity shares and in multiples thereof.

Buzzing Index:

Nifty FMCG index slipped 2.39% to Rs 58,661.65. The index rose 0.16% in the past trading session.

Hindustan Unilever (down 6.7%), Varun Beverages (down 2.62%), Godrej Consumer Products (down 2.22%), Nestle India (down 2.18%), United Breweries (down 1.86%), Dabur India (down 1.75%), Colgate-Palmolive (India) (down 1.67%), Marico (down 1.49%), Britannia Industries (down 1.38%) and Procter & Gamble Hygiene and Health Care (down 1.11%) declined.

Stocks in Spotlight:

Ashok Leyland added 0.93%. The company announced that its subsidiary OHM Global Mobility has bagged an order for 500 12-m ultra-low floor electric buses from the Metropolitan Transport Corporation (MTC), Chennai.

TVS Motor Company slipped 1.85%. The company reported 23.49% increase in standalone net profit to Rs 662.62 crore in Q2 FY25 as compared to Rs 536.55 crore posted in Q2 FY24. Revenue from operations rose 13.30% YoY to Rs 9,228.24 crore in the September 2024 quarter.

MAS Financial Services declined 2.05%. The company’s standalone net profit jumped 27.59% to Rs 76.57 crore in Q2 FY25 as against Rs 60.01 crore posted in Q2 FY24. Total revenue from operations was at Rs 365.05 in Q2 FY25, up 24.09% as against Rs 294.18 crore recorded in same quarter last year.

Global Markets:

Most Asian shares declined on Thursday. South Korea’s GDP expanded 0.1% in the third quarter from the previous one, narrowly avoiding a technical recession, following a 0.2% contraction in the second quarter. On a year-on-year basis, South Korea’s economy grew 1.5%.

Japanese business activity shrank in October. The au jibun bank flash manufacturing PMI fell to 49.0 in October from 49.7 in September. A reading below 50 indicates contraction, with the sector shrinking for a third consecutive month. The au jibun bank flash services PMI slid to 49.3 in October from 53.1 in the prior month, falling into contraction for the first time since June. The fall in services activity saw the composite PMI for October drop to 49.4 from 52.0 in the prior month.

US stocks fell sharply on Wednesday, with the Dow Jones Industrial Average posting its worst day in more than a month, as higher Treasury yields weighed on market sentiment.

The S&P 500 lost 0.92%. The 30-stock Dow plunged 0.96%, ending the day’s session at 42,514.95. It was the worst day since early September for the blue-chip index. The Nasdaq Composite lost 1.6%. Both the Dow and S&P 500 notched their third straight losing session.