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Indices trade with limited losses; European mkt opens lower

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Last Updated : Oct 30 2024 | 2:08 PM IST
The frontline indices traded with modest losses in afternoon trade. The Nifty slipped below the 24,400 level. Financial Services, bank and private bank shares declined while media, auto and FMCG stocks advanced.

At 12:30 IST, the barometer index, the S&P BSE Sensex declined 283.71 points or 0.35% to 80,100.91. The Nifty 50 index lost 72.10 points or 0.29% to 24,394.75.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.55% and the S&P BSE Small-Cap index jumped 1.51%.

The market breadth was strong. On the BSE, 2,924 shares rose and 869 shares fell. A total of 111 shares were unchanged.

Economy:

The Indian diaspora's confidence in the Indian economy has soared, as evidenced by the significant increase in Non-Resident Indian (NRI) deposits. According to the Reserve Bank of India's (RBI) latest monthly bulletin, inflows into NRI deposit schemes surged to $7.82 billion in the period of April-August 2024, more than double the $3.74 billion recorded in the same period last year.

Both dollar-denominated (FCNR(B)) and rupee-denominated (NRE(RA)) deposits witnessed substantial growth.

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Among the various NRI deposit schemes, Foreign Currency Non-Resident (FCNR) deposits witnessed the highest inflow, attracting $3.47 billion during the period, compared to $1.55 billion in the corresponding period a year ago. These deposits, denominated in foreign currencies, offer security against currency fluctuations and provide attractive returns.

Non-Resident External (NRE) deposits, which are rupee-denominated accounts, also saw a significant increase, with inflows of $2.51 billion during this period, compared to an inflow of $868 million in the corresponding period a year ago.

Non-Resident Ordinary (NRO) deposits, which are also rupee-denominated, also saw inflows worth $1.84 billion from April-August, 2024, compared to $1.32 billion during the same period a year ago.

This surge can be attributed to factors such as attractive returns in Indian markets, strong economic fundamentals, and a more stable domestic monetary policy environment compared to many global economies.

With total outstanding NRI deposits reaching $158.94 billion as of August 2024, the Indian diaspora's continued trust in the country's economic prospects is evident.

Gainers & Losers:

Adani Enterprises (up 4.33%), Maruti Suzuki India (up 3.52%), Tata Consumer Products (up 3.07%), Adani Ports and Special Economic Zone (up 2.50%) and Bharat Electronics (up 2.49%) were major Nifty gainers.

Cipla (down 3.65%), Dr. Reddy's Laboratories (down 2.03%), Shriram Finance (down 2%), Trent (down 2%) and SBI Life Insurance Company (down 1.92%) were major Nifty losers.

Stocks in Spotlight:

Voltas slipped 3.19% after the companys consolidated net profit slipped 59.91% to Rs 133.99 crore on 46.78% decline in revenue from operations to Rs 2,619.11 crore in Q2 FY25 over Q1 FY25.

Kaynes Technology India declined 3.08% after the company reported 86.35% increase in consolidated net profit to Rs 60.21 crore in Q2 FY25 as against Rs 32.31 crore posted in Q2 FY24. Revenue from operations jumped 58.55% YoY to Rs 572.12 crore in the quarter ended 30 September 2024.

Force Motors was locked in a 20% upper circuit after the companys consolidated net profit jumped 43.83% to Rs 135.02 crore in Q2 FY25 as against Rs 93.87 crore posted in Q2 FY24. Revenue from operations grew 7.75% to Rs 1,941.33 crore in the quarter ended 30 September 2024.

Deepak Fertilizers & Petrochemicals Corporation declined 1.09% after the companys consolidated surged 237.38% to Rs 214.07 crore on 13.31% increase in revenue from operations to Rs 2,746.72 crore in Q2 FY25 over Q2 FY24.

Prestige Estates Projects advanced 2.57%. The company reported 77.41% decrease in consolidated net profit to Rs 192.20 crore in Q2 FY25 as against Rs 850.90 crore recorded in Q2 FY24. However, revenue from operations grew 3.04% year on year (YoY) to Rs 2,304.40 crore in the quarter ended 30 September 2024.

Sheela Foam lost 1.92% after the companys consolidated net profit tumbled 77.68% to Rs 9.81 crore in Q2 FY25 as against Rs 43.96 crore posted in Q2 FY24. However, revenue from operations jumped 32.54% to Rs 812.75 crore in Q2 FY25 as against Rs 613.18 crore reported in corresponding quarter last year.

Honeywell Automation India slumped 7.65% after the company reported 5.57% decline in net profit to Rs 115.10 crore on 7.27% decrease in revenue from operations to Rs 1,023.9 crore in Q2 FY25 over Q2 FY24.

Glaxosmithkline Pharmaceuticals advanced 2.16% after the companys standalone net profit jumped 15.38% to Rs 248.69 crore on 4.9% increase in revenue from operations to Rs 1,000.05 crore in Q2 FY25 over Q2 FY24.

Global Markets:

European shares declined on Wednesday as investors await the latest growth data from the region, the U.K. governments Budget and another batch of earnings.

Asian stocks fell on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.

Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.

In the US, indices marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors. The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.

Sentiment was underpinned by strong earnings from Alphabet Inc. Tech majors Meta Platforms Inc and Microsoft Corporation are set to report on Wednesday, while Amazon.com Inc and Apple Inc are due on Thursday.

A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserves preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

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First Published: Oct 30 2024 | 1:38 PM IST

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