The persistent selling pressure from FIIs has significantly contributed to the market's downturn. Concerns over rich valuations and rising inflationary pressures have further dampened investor sentiment. Additionally, the strengthening US dollar, fueled by expectations of a pro-growth economic policy under the Trump administration, has put additional pressure on emerging market assets, including Indian equities. The combined impact of these factors has led to a significant correction in the Indian stock market. Both the Nifty 50 and Sensex indices have fallen to their five-month lows.
The S&P BSE Sensex tumbled 984.23 points or 1.25% to 77,690.95. The Nifty 50 index declined 324.40 points or 1.36% to 23,559.60. The 50-unit index has fallen 3.78% in five sessions.
Mahindra & Mahindra (down 3.23%), HDFC Bank (down 2.16%), Reliance Industries (down 1.64%) and ICICI Bank (down 1.31%) were major drags.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index dropped 2.56% and the S&P BSE Small-Cap index tumbled 3.08%.
The market breadth was weak. On the BSE, 670 shares rose and 3299 shares fell. A total of 98 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 5.03% to 15.33.
Economy:
India's retail inflation, based on the Consumer Price Index (CPI), in October 2024 surged to a 14-month high of 6.21%, according to the latest official data released on Tuesday. India's retail inflation had stood at a nine-month high of 5.49% in September 2024. It was at 4.87% in October 2023.
India's industrial production grew by 3.1% in September, according to official data released on Tuesday. In the previous month of August, the factory output, based on the Index of Industrial Production (IIP), was in the negative territory at (-) 0.1%. However, the IIP growth had stood at 6.4% in September 2023.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.14% to 6.917 as compared with previous close 6.907.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.3875, compared with its close of 84.3900 during the previous trading session.
MCX Gold futures for 5 December 2024 settlement added 0.22% to Rs 75,066.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 106.05.
The United States 10-year bond yield fell 0.34% to 4.421.
In the commodities market, Brent crude for November 2024 settlement gained 54 cents or 0.54% to $72.43 a barrel.
Global Markets:
European stocks advanced as investors look ahead for October's inflation data of the U.S., a key factor when it comes to the Federal Reserve's decision to cut or maintain interest rates
Asian stocks ended lower on Wednesday as traders are growing cautious ahead of crucial U.S. inflation data.
Asian traders assessed corporate goods data out of Japan, which showed year-on-year producer price growth, or wholesale inflation, in October reached its highest since July last year at 3.4%.
China's recent fiscal measures failed to significantly boost regional markets, while uncertainty surrounding global trade relations continues to dampen sentiment.
Wall Street benchmarks retreated from record highs on Tuesday after a strong post-election run. At the close in NYSE, the Dow Jones Industrial Average lost 0.86%, while the S&P 500 index fell 0.29%, and the NASDAQ Composite index declined 0.09%.
Key Federal Reserve officials' hawkish comments, particularly Minneapolis Fed President Neel Kashkari's warning about potential rate hikes, added to the negative sentiment.
Investors are now focused on the upcoming U.S. consumer price index (CPI) data due later on Wednesday, which is expected to reveal persistent inflation in October.
Stocks in Spotlight:
Bombay Stock Exchange (BSE) slipped 4.07%. The company reported 192% surge in consolidated net profit to Rs 346 crore on 137% soar in revenue from operations to Rs 746 crore in Q2 FY25 over Q2 FY24.
Kalyan Jewellers India tumbled 4.87% after the company's consolidated net profit declined 3.43% to Rs 130.61 crore in Q2 FY25 as compared with Rs 135.25 crore posted in Q2 FY24. There was a one-time loss of Rs 69 crore due to reduction in customs duty in India during Q2 FY25. Revenue from operations increased 37.4% YoY to Rs 6,065.48 crore in the quarter ended 30 September 2024.
Patel Engineering jumped 2.26% after the company reported strong Q2FY25 results. On a consolidated basis, the company's net profit surged 150.87% to Rs 80.77 crore on 14.98% increase in total revenue from operations to Rs 1174.32 crore in Q2 September 2024 over Q2 September 2023. Profit before Tax soared 105.93% year-on-year to Rs 101.07 crore during the quarter.
FSN E-Commerce Ventures (Nykaa) declined 3.12%. The company's consolidate net profit jumped 66.28% to Rs 12.97 crore on 24.4% increase in revenue from operations to Rs 1,874.74 crore in Q2 FY25 over Q2 FY24.
Sula Vineyards slipped 4.12% after the company's consolidated net profit fell 37.28% to Rs 14.48 crore in Q2 FY25 as against Rs 23.09 crore posted in Q2 FY24. Revenue from operations (excluding excise duty) decreased marginally to Rs 132.36 crore in the second quarter of FY25 as compared to Rs 133.69 crore recorded in the corresponding quarter previous year.
Droneacharya Aerial Innovations tanked 16.37%. The company said that it has secured a master contract worth $1.75 million (Rs 14.80 crore) for specialized drone consultancy services from American Blast Systems (ABS), California, USA.
Suven Pharmaceuticals Industries (SPL) added 4.6% after the drug maker's consolidated net profit increased 3.34% to Rs 82.21 crore on 11.54% rise in revenue from operations to Rs 257.72 crore in Q2 FY25 over Q2 FY24.
Greaves Cotton tumbled 10.51% after the company reported a consolidated net loss of Rs 14.33 crore in Q2 FY25 as against a net loss of Rs 379.59 crore posted in Q2 FY24. Income from operations fell by 3% YoY to Rs 705 crore during the quarter.
Century Plyboards (India) dropped 6.52% after the company's consolidated net profit tumbled 58.74% to Rs 39.96 crore in Q2 FY25 as against Rs 96.86 crore posted in Q2 FY24. Revenue from operations grew 18.73% year on year (YoY) to Rs 1,183.62 crore in the quarter ended 30 September 2024.
New Listing:
Shares of Swiggy closed at Rs 455.95 on the BSE, representing a premium of 16.91% as compared with the issue price of Rs 390.
The scrip was listed at Rs 412, exhibiting a premium of 5.64% to the issue price. The stock has hit a high of 465.30 and a low of 390.70. On the BSE, over 80.74 lakh shares of the company were traded in the counter.
Shares of ACME Solar Holdings closed at Rs 253.50 on the BSE, a discount of 12.28% as compared with the issue price of Rs 289.
The scrip was listed at Rs 259, exhibiting a discount of 10.38% to the issue price. The stock has hit a high of 279 and a low of 248.80. On the BSE, over 13.33 lakh shares of the company were traded in the counter.
IPO Update:
The initial public offer (IPO) of Zinka Logistics Solutions received bids for 54,08,100 shares as against 2,25,67,270 shares on offer, according to stock exchange data at 17:00 IST on 13 November 2024. The issue was subscribed 0.24 times.
The issue opened for bidding on 13 November 2024 and it will close on 18 November 2024. The price band of the IPO is fixed between Rs 259 to Rs 273 per share. An investor can bid for a minimum of 54 equity shares and in multiples thereof.
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