Nifty settles below 24,250; IT shares underperforms

The headline indices ended with moderate losses on Thursday. The Nifty settled below the 24,250 mark. Media, pharma and healthcare shares advanced while IT, consumer durables and FMCG shares declined. Trading was volatile due to weekly F&O series expiry today.

As per provisional closing, the S&P BSE Sensex, tumbled 553.12 points or 0.69% to 79,389.06. The Nifty 50 index declined 135.50 points or 0.56% to 24,205.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.34% and the S&P BSE Small-Cap index added 1.62%.

The market breadth was positive. On the BSE, 2,662 shares rose and 1,255 shares fell. A total of 109 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.35% to 15.57.

Both, BSE and NSE will conduct the Muhurat trading session on Friday, 1 November, from 6:00 pm to 7:00 pm. While markets remain closed during the day, this evening session allows investors to make token investments, following a long-standing custom of trading during Diwali.

Buzzing Index:

The Nifty IT index lost 3.03% to 40,407.55. The index declined 3.58% in two trading sessions.

Tech Mahindra (down 4.46%), Persistent Systems (down 4.45%), HCL Technologies (down 4.21%), Mphasis (down 4.16%), L&T Technology Services (down 4.11%), Tata Consultancy Services (down 2.93%), Infosys (down 2.54%), Wipro (down 2.24%), LTIMindtree (down 1.42%) and Coforge (down 1.36%) slipped.

Stocks in Spotlight:

Larsen & Toubro (L&T) jumped 6.14% after the company reported 5.36% increase in consolidated net profit to Rs 3,395.29 crore in Q2 FY25 on 20.64% jump in revenue from operations to Rs 61,554.58 crore in Q2 FY25 over Q2 FY24.

Cipla surged 9.58% after the drug maker the US drug regulator classified the manufacturing facility in Goa as voluntary action indicated (VAI). The United States Food and Drug Administration (USFDA) conducted routine current Good Manufacturing Practices (cGMP) inspection at Goa manufacturing facility from 10 to 21 June 2024. On conclusion, the company had received 6 inspectional observations in Form 483.

Tata Power Company advanced 3.09% after the companys consolidated net profit increased 7.44% to Rs 1,093.08 crore despite of 0.26% increase in revenue from operations to Rs 15,697.67 crore in Q2 FY25 over Q2 FY24.

Biocon fell 1.45% after the company reported a consolidated net loss of Rs 16 crore in Q2 FY25 as against a net profit of Rs 126 crore in Q2 FY24. Revenue from operations rose by 4% year-over-year (YoY) to Rs 3,590 crore during the quarter.

DCM Shriram shed 0.71%. The company reported consolidated net profit surged 95.16% to Rs 62.92 crore on 10.79% rise in total revenue from operations to Rs 3,130.09 crore in Q2 FY25 over Q2 FY24.

Prudent Corporate Advisory Services soared 16.25% after the companys consolidated net profit climbed 69.36% to Rs 51.52 crore on 50.54% jump in revenue from operations to Rs 286.08 crore in Q2 FY25 over Q2 FY24.

Protean eGov Technologies declined 1.66% after the companys consolidated net profit declined 14.46% to Rs 28.04 crore on 6.75% fell in revenue from operations to Rs 219.70 crore in Q2 FY25 over Q2 FY24.

Automotive Axles rose 0.69%. The company's standalone net profit declined 20.20% to Rs 35.97 crore on 15.35% decrease in revenue from operations to Rs 494.68 crore in Q2 September 2024 over Q2 September 2023.

Global Markets:

The US Dow Jones index futures are currently down by 209 points, signaling a weak opening for US stocks today.

European market declined as investors assessed the latest euro zone inflation data and latest key earnings from the region.

Euro zone inflation rose to 2% in October, higher than Septembers 1.7% reading. The figures will inform the European Central Bank on the trajectory of expected interest rate cuts.

Asian stocks ended lower on Thursday as investors look to the Bank of Japans rate decision, as well as key business activity figures from China.

The BOJ held its benchmark policy rate at 0.25%, unchanged from the previous meeting. The bank released a two-line statement simply stating the decision, with no clues on the timing of its next rate hike.

In China, the countrys manufacturing purchasing managers index flipped into expansion territory for the first time since April, with the National Bureau of Statistics revealing the manufacturing PMI came in at 50.1.

In the US, stocks rallied on Wednesday, with the tech-heavy Nasdaq Composite reaching a new record high, driven by strong earnings from Alphabet. The Dow Jones Industrial Average gained 0.51%, the S&P 500 rose 0.29%, and the Nasdaq Composite climbed 0.24%.

Economic data released on Wednesday showed that the US economy grew at an annual rate of 2.8% in the third quarter, supported by consumer spending and government expenditure. However, this was a slowdown from the second quarter's 3% pace. Additionally, US private payrolls surged by 233,000 jobs in October, exceeding expectations.

Market participants are cautiously looking ahead to a crucial week, which includes the release of US non-farm payrolls data on Friday, the presidential election next Tuesday, and a Federal Reserve policy decision next Thursday. Gold prices continued to climb, reaching a new record high.

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