Equity Analysis

End-Session - Detailed News
Benchmarks end lower, Nifty ends below 24,150; Trent slides 3%
08-Nov-24   17:12 Hrs IST

The domestic equity benchmarks concluded the trading session on a negative note on Friday, despite a positive global sentiment triggered by a 25 basis point rate cut by the US Federal Reserve. The Nifty 50 closed below the 24,150 mark. PSU banks, realty, and media stocks witnessed significant declines. IT, consumer durables, and FMCG sectors bucked the negative trend.

The market exhibited a lackluster performance throughout the day, consolidating within a narrow range. After an initial dip, the indices experienced volatile trading in the early hours before settling into a range-bound movement.

The S&P BSE Sensex declined 55.47 points or 0.07% to 79,486.32. The Nifty 50 index lost 51.15 points or 0.21% to 24,148.20.

Trent (down 3.06%), State Bank of India (down 1.86%), Reliance Industries (down 1.66%) and ICICI Bank (down 1.53%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.18% and the S&P BSE Small-Cap index declined 1.52%.

The market breadth was weak. On the BSE, 1396 shares rose and 2575 shares fell. A total of 93 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.45% to 14.57.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.32% to 6.886 as compared with previous close 6.908.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.3675, compared with its close of 84.3250 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement fell 0.46% to Rs 77,055.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 104.49.

The United States 10-year bond yield lost 0.95% to 4.301.

In the commodities market, Brent crude for Jan 2025 settlement declined $1.13 or 1.49% to $74.50 a barrel.

Global Markets:

European shares declined on Friday, as investors monitored corporate results and reacted to quarter-point interest rate cuts from the U.S. Federal Reserve and Bank of England.

Asian stocks ended mixed on Friday 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.

Stocks in Spotlight:

State Bank of India (SBI) slipped 1.86%. The largest PSU bank's standalone net profit rose 27.92% to Rs 18,331.44 crore on 15.13% increase in total income to Rs 129,141.11 crore in Q2 FY25 over Q2 FY24.

Steel Authority of India (SAIL) dropped 4.01% after the company's standalone net profit declined 32.82% to Rs 833.52 crore on 16.96% slide in revenue from operations to Rs 24,674.70 crore in Q2 FY25 over Q2 FY24.

Indian Hotels Company (IHCL) surged 7.23% after the company's consolidated net profit surged 232.24% to Rs 554.58 crore on 27.42% rise in revenue from operations to Rs 1,826.12 crore in Q2 FY25 over Q2 FY24.

Cummins India advanced 2.9% after the company's standalone net profit jumped 37.16% to Rs 450.61 crore in Q2 FY25 as against Rs 328.51 crore posted in Q2 FY24. Revenue from operations was at Rs 2,448.40 crore in Q2 FY25, marking a growth of 30.82% as against Rs 1871.45 crore reported in the same quarter last year.

Cochin Shipyard hit a lower circuit of 5% after the company's consolidated net profit slipped 25.89% to Rs 149.39 crore in Q2 FY25 as against Rs 180.89 crore posted in Q1 FY25. However, revenue from operations grew 13% year on year (YoY) to Rs 1,143.20 crore in the quarter ended 30 September 2024.

IRCON International fell 4.4% after the company's consolidated net profit decline 17.90% to Rs 205.9 crore in Q2 FY25 as against Rs 250.8 crore posted in Q2 FY24. Revenue from operations slipped 19.31% to Rs 2,447.52 crore during the quarter as compared with Rs 3,033.27 crore posted in corresponding quarter last year.

Indian Metals & Ferro Alloys jumped 8.5% after the company's standalone net profit jumped 47.54% to Rs 132.73 crore despite 0.1% decline in revenue from operations to Rs 691.92 crore in Q2 FY25 over Q2 FY24.

NHPC slipped 2.60% after the company reported 41.19% decline in consolidated net profit to Rs 908.97 crore in Q2 FY25 from Rs 1,545.85 crore recorded in Q2 FY24. However, revenue from operations rose 4.11% year on year (YoY) to Rs 3,051.93 crore in the quarter ended 30 September 2024.

Rail Vikas Nigam (RVNL) dropped 6.17% after the company reported 27.26% decline in consolidated net profit to Rs 286.89 crore in Q2 FY25 as against Rs 394.42 crore posted in Q2 FY24. However, revenue from operations decreased 1.20% YoY to Rs 4,854.95 crore in the quarter ended 30 September 2024.

GMM Pfaudler fell 6.7% after the company's consolidated net profit fell 74.72% to Rs 17.26 crore in Q2 FY25 as against Rs 68.30 crore posted in Q2 FY24. Revenue from operations declined 14.08% to Rs 805.42 crore in Q2 FY25 from Rs 937.48 crore recorded in the corresponding quarter previous year.

Latent View Analytics rallied 6.20% after the company's consolidated net profit rose 4.57% to Rs 40.70 crore on 16.81% jump in revenue from operations to Rs 208.95 crore in Q2 FY25 over Q1 FY25.

NRB Bearings jumped 4.01% after the company's consolidated net profit increased 45.92% to Rs 35.94 crore on 8.07% rise in net sales to Rs 301.51 crore in Q2 FY25 over Q2 FY24.

IPO Update:

The initial public offer (IPO) of Niva Bupa Health Insurance Company received bids for 20,26,82,400 shares as against 17,28,57,143 shares on offer, according to stock exchange data at 17:00 IST on Friday (08 November 2024). The issue was subscribed 1.17 times.

The issue opened for bidding on Thursday (07 November 2024) and it will close on Monday (11 November 2024). The price band of the IPO is fixed between Rs 70 to Rs 74 per share. An investor can bid for a minimum of 200 equity shares and in multiples thereof.

Swiggy's IPO received bids for 57,53,15,972 shares as against 16,01,09,703 shares on offer, according to stock exchange data at 17:00 IST on Friday (08 November 2024). The issue was subscribed 3.59 times.

The issue opened for bidding on Wednesday (06 November 2024) and it will close on Friday (08 November 2024). The price band of the IPO is fixed between Rs 371 to Rs 390 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

ACME Solar Holdings' IPO received bids for 16,00,18,161 shares as against 5,82,03,223 shares on offer, according to stock exchange data at 17:00 IST on Friday (08 November 2024). The issue was subscribed 2.75 times.

The issue opened for bidding on Wednesday (06 November 2024) and it will close on Friday (08 November 2024). The price band of the IPO is fixed between Rs 275 to Rs 289 per share. An investor can bid for a minimum of 51 equity shares and in multiples thereof.

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