Market Today: Hyundai India IPO listing; RBI says festive demand intact

Stock Market Today, October 22, 2024: Indian benchmark indices – Nifty50 and Sensex – may see a flat opening today. At 6:35 AM, GIFT Nifty Futures were down merely 3 points, trading at 24,785, suggesting a flat start for the Indian bourses.

Meanwhile, the Indian stock markets faced pressure on Monday as investors booked profits amid the ongoing Q2 earnings season. Despite a nearly 3 per cent surge in HDFC Bank’s share price, the BSE Sensex closed at 81,151.27, down 73.48 points (0.09 per cent), and the Nifty50 ended at 24,781, losing 73 points (0.29 per cent).

Domestic Cues for the day

Hyundai Motor India IPO listing

A key focus will be on the listing of Hyundai Motor India’s IPO today. The grey market premium (GMP) for the unlisted shares were down to Rs 48, translating to a 2.45 per cent premium over the IPO issue price of Rs 1,960. 

Also Read: Amid slackness, RBI report confident of festive season boost to economy

Q2 results

Earnings reports from newly-listed Bajaj Housing Finance and cement giant UltraTech Cement are also on investors' radars. Bajaj Housing Finance reported a 21 per cent year-on-year increase in net profit for Q2FY25 at Rs 546 crore, driven by robust growth in total income. Conversely, UltraTech Cement saw a 36 per cent decline in net profit for the same quarter, with an attributable profit of Rs 820 crore, largely due to decreased revenue from operations.

Additional earnings reports are anticipated from companies including Zomato, Paytm, Adani Green Energy, Persistent Systems, Varun  Beverages, Bajaj Finance, Indus Towers, and ICICI Prudential Life, among several others.

Also Read: Robust domestic engines supporting India's growth outlook: RBI Bulletin

Asia-Pacific market 

Asia-Pacific markets started the day on a mixed note. Australia’s S&P/ASX 200 fell 1.2 per cent, while South Korea's Kospi and Kosdaq also saw declines of 0.80 per cent and 1.40 per cent, respectively. In contrast, Japan's Nikkei 225 posted marginal gains, and the broader Topix index remained close to flat.

US markets

On Wall Street, both the Dow Jones Industrial Average and S&P 500 closed lower, retreating from record highs as Treasury yields increased. The yield on the benchmark 10-year Treasury jumped as much as 4.17 per cent, marking a 12-week high.

Thus, the Dow fell 0.80 per cent, while the S&P 500 slipped 0.18 per cent. The Nasdaq Composite, however, gained 0.27 per cent, driven by a surge in Nvidia's stock.

That apart, Federal Reserve officials commented on interest rate trajectories, with Minneapolis Fed President Neel Kashkari suggesting rates could be higher in the long term due to a resilient economy, while Dallas Fed President Lorie Logan advocated for a cautious approach to rate reductions.

IPO corner
 

Waaree Energies Limited IPO (Mainline), Deepak Builders & Engineers India Limited IPO (Mainline), and Premium Plast Limited IPO (SME) will enter day 2 of subscription today. OBSC Perfection Limited IPO (SME), United Heat Transfer Limited IPO (SME) and Danish Power Limited IPO (SME) will open for subscription today.

Commodities

US crude oil prices rose nearly 2 per cent on Monday, with the West Texas Intermediate contract at $70.56 per barrel. Gold prices stabilised after hitting a record high, with spot gold trading around $2,724 per ounce.

Foreign and domestic institutional activity

On October 21, foreign institutional investors sold shares worth Rs 2,261.83 crore, while domestic institutional investors purchased shares totaling Rs 3,225.91 crore.

Also Read: Net FDI in India more than doubles in Apr-Aug 2024, shows RBI data

Here's how analysts are assessing today's (October 22) trading session:

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd
 

On the daily chart, the Nifty formed a bearish candle, which indicates weakness. However, the index managed to hold the neckline support of the head and shoulder pattern and close above the 24,700 level. On the upside, the 21-Days Exponential Moving Average (21-DEMA) around 25,120 will be the major hurdle for the index, followed by 25,240. If the index sustains below 24,700, then further weakness could be possible.

Shrikant Chouhan, Head of Equity Research, Kotak Securities

For the day traders now, 24700/80900 would act as a key support zone. Below which, the selling pressure is likely to accelerate. Below which, the market could retest the level of 24600-24550/80600-80500. However, above 24875/81500 the market could bounce back till 25000-25050/81800-82000.

Rupak De, Senior Technical Analyst, LKP Securities
 

Nifty remained volatile throughout the day as traders were uncertain about the market direction. On the higher end, it found resistance at the 50 EMA on the daily timeframe. Additionally, the index failed to move beyond 25000, which led to selling pressure that pushed it down to 24700. If Nifty falls below 24700, the selling pressure may intensify. However, if it holds above 24700, a smart recovery toward 25050 could be expected.