Market Today: Hero MotoCorp Q2; WPI; US inflation; & Niva Bupa IPO listing

Stock Market Today, Thursday, Nov 14: Key benchmark indices – Sensex and Nifty50 – are likely to open lower amid mixed global cues. At 6:30 AM, GIFT Nifty Futures suggested a flat to slightly negative start, down 18 points at 23,641, compared to Nifty Futures’ previous close of 23,659.

 

In the previous session, both Sensex and Nifty extended their losing streak, each closing over 1 per cent lower. The BSE Sensex ended at 77,690.95, while the Nifty settled at 23,559.05.   Also, Indian bourses will remain shut on Friday, November 15, 2024, on account of Guru Nanak Jayanti.

 

Also Read: Markets enter 'correction' territory; inflation, USD adds to investors woes

 

Global markets

 

Asia-Pacific markets were mostly trading higher on Thursday, reacting to the US Consumer Price Index (CPI) data for October, which met expectations and spurred hopes for a possible rate cut by the Federal Reserve in December. 

 

Headline CPI showed a slight increase, pushing the annual inflation rate to 2.6 per cent, while Core CPI, excluding food and energy prices, rose 3.3 per cent, also aligning with forecasts.

 

Therefore, Nikkei climbed 0.68 per cent, while the Topix index gained 0.58 per cent. Meanwhile, ASX 200 was trading 0.45 per cent higher.

 

In the US, markets closed mostly flat on Wednesday after the release of the CPI data. The S&P 500 edged up 0.02 per cent, and the Dow Jones gained 0.11 per cent. The Nasdaq, bucking the trend, declined 0.26 per cent. 

 

The inflation figures reinforced expectations of a potential rate cut by the Federal Reserve next month, with the CME FedWatch Tool indicating an 80.8 per cent probability of a quarter-point reduction.

 

Investors also await Jobless claims for the week-ended Nov 9 and Oct core PPI figures.

 

Domestic cues 

Investors back home will focus on the Wholesale Price Index (WPI) data for October and Q2 earnings announcements from key companies. India’s wholesale prices rose 1.84 per cent year-on-year in September 2024, up from a four-month low of 1.31 per cent in August.

 

Also Read: Economists say MPC's rate cut in February may not be a done deal

 

Furthermore, the stock exchanges on Wednesday announced the addition of 45 stocks to the new list of scrips eligible for trading in the futures and options (F&O) segment, including Zomato, Jio Financial, Paytm, Delhivery, and Avenue Supermarts. READ MORE

 

Mkt regulator Sebi mulls action for lapses in Artificial intelligence usage

 

Q2 nos 

Several companies are set to release their Q2 results, including Hero MotoCorp, Sobha, Hindustan Aeronautics Limited (HAL), Bharat Forge, and Glenmark Pharma among others. Investors will also react to nos. from Eicher Motors, Nalco, Vodafone Idea and GRSE among others. 

 

Eicher Motors posted an 8.3 per cent Y-o-Y rise in consolidated profits at Rs 1,100.3 crore in Q2FY25, while Vodafone Idea’s consolidated losses widened to Rs 7,175.9 crore.

 

FII, DII 

Foreign Institutional Investors (FIIs) sold shares of Rs 2,502.58 crore, on Nov13. Contrastingly, Domestic Institutional Investors (DIIs) bought shares of Rs 6,145.24 crore.

 

Also Read: India's outward FDI rises to $3.7 billion in October 2024: RBI data

 

IPO corner 

Niva Bupa Health IPO (Mainline) will debut on the stock exchanges today. The Zinka Logistics IPO (Mainline) and the Onyx Biotec IPO (SME) enter their second subscription day, while Mangal Compusolution IPO (SME) will see its final subscription day.

 

Also Read: NTPC Green targets $10.8 billion valuation in IPO, analysts flag concerns

 

Commodity prices 

Oil prices rebounded on Wednesday due to short-covering after a dip near a two-week low, following OPEC’s demand forecast reduction. Brent crude futures rose 0.54 per cent to settle at $72.28 per barrel. Meanwhile, Gold extended its losses for the fourth consecutive session on Wednesday, pressured by a stronger dollar and high bond yields after US October consumer prices rose as expected. Spot gold fell 0.7 per cent to $2,580.39 per ounce, touching a near two-month low earlier.

 

Here's how analysts are assessing today's (November 14) trading session:

 

Hrishikesh Yedve, AVP, technical and derivatives research at Asit C Mehta Investment 

  Due to heavy selling pressure, the index has tested its 200-Days exponential moving average (DEMA) support which is placed around 23,540. A strong break below 23,500, will push the index further lower to 23,300-23,200 levels, where the trend line support is placed. Overall, market sentiment appears to be negative, but we'll have to see how the Nifty behaves around the 200-DEMA support.

 

Shrikant Chouhan, head equity research, Kotak Securities 

After a weak opening, throughout the day, the market registered selling pressure at higher levels. In addition, bearish candles on daily charts indicating further weakness from the current levels. We are of the view that, the current market texture is weak but oversold hence; we could expect one quick intraday pullback rally from the current levels.

 

Rupak De, senior technical analyst, LKP Securities 

The index has slipped sharply due to strong selling by major players. The Nifty has fallen toward its 200DMA, breaching the support level at 23800. Immediate support is now at 23500, and a fall below this level could trigger further correction toward 23300–23200. On the higher end, resistance is positioned at 23750.