Market Today: TaMo, Asian Paints Q2; China stimulus; Niva Bupa IPO Day 3

Stock Market Today, Monday, Nov 11: Indian benchmark indices, the Nifty50 and Sensex, are expected to open on a weaker note today, tracking mixed global cues. 

 

At 6:35 AM, GIFT Nifty Futures were down 82 points at 24,136, signalling a potential negative start.

 

Meanwhile, on Friday, November 8, the Sensex closed lower, slipping 55.47 points, or 0.07 per cent, to end at 79,486.32. The Nifty50 also fell 51.15 points, or 0.21 per cent, to finish at 24,148.20. 

 

Investors, this week, will focus on quarterly earnings reports, coupled with October inflation figures and Index of Industrial Production (IIP) data. CPI and IIP data is expected on November 12, while WPI data is expected on November 14.

 

Quarterly earnings 

Investors will react to earnings reports from major companies like Tata Motors, LIC, Asian Paints, and Divi’s Labs. Tata Motors reported a 9.9 per cent drop in consolidated profit, posting Rs 3,450 crore in Q2FY25 compared to Rs 3,832 crore in Q2FY24. Asian Paints saw a decline in profit, falling 43.7 per cent to Rs 694 crore in Q2FY25, down from Rs 1,232.4 crore in the same period last year. In contrast, Divi’s Laboratories reported a strong annual profit growth of 46.6 per cent, reaching Rs 510 crore compared to Rs 348 crore in Q2FY24.

 

Earnings today 

Key earnings to watch today include Hindalco Industries, ONGC, Britannia, BEML, NMDC, Jubilant FoodWorks, Bajaj Consumer Care, Bank of India, and Zydus Wellness, among others.

 

Other triggers  

India Inc continues to face muted revenue growth in the September 2024 quarter (Q2FY25), with margins and profits under pressure. Non-financial companies were especially impacted, while the banking, financial services, and insurance (BFSI) sector performed strongly. So far, cumulative profits of 1,353 listed companies that have reported Q2FY25 results have declined by 0.6 per cent year-on-year, marking the first earnings drop in eight quarters. READ MORE

 

Institutional activity

  On November 8, foreign institutional investors (FIIs) sold shares worth Rs 3,404.04 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,748.44 crore.

 

IPO corner

  Niva Bupa Health Insurance Company Limited IPO (Mainline) will see its last day of subscription. Formerly known as Max Bupa Health Insurance, the IPO saw a subscription rate of 1.17 times on its second day (Friday), with bids for 20,26,82,400 shares against the 17,28,57,143 shares on offer, as per NSE data.

 

Asia-Pacific markets

  Asia-Pacific markets declined on Monday after China reported lower-than-expected inflation for October, sparking concerns about the recovery of the world's second-largest economy. 

 

China’s inflation rate fell to 0.3 per cent, missing the forecast of 0.4 per cent and down from 0.4 per cent in September. This marks the second consecutive month of declining inflation, hitting its lowest level in four months, according to LSEG data.

 

On Friday, China announced a 10 trillion yuan ($1.4 trillion) debt package to ease local government financing pressures and support economic stability. However, the package stopped short of direct economic stimulus measures.

 

Apart from that, in Japan, the Bank of Japan’s policymakers were reportedly divided on the timeline for potential interest rate hikes. A summary from the October policy meeting showed that some members warned of possible market volatility, stressing upon the need to monitor market trends, particularly fluctuations in the yen, before raising borrowing costs.

 

Market indices reflected these concerns, with Japan's Nikkei 225 falling 0.14 per cent and the broad-based Topix trading flat. South Korea’s Kospi declined 0.57 per cent, while the small-cap Kosdaq was down 0.58 per cent. Australia's S&P/ASX 200 began the day 0.26 per cent lower. Futures for Hong Kong's Hang Seng Index pointed to a weaker opening, set to open at 20,265, down from its prior close of 20,728.19.

 

Wall Street

 

This week, investors are closely watching for inflation data due on November 13, which could influence whether the recent stock rally, fuelled by Donald Trump's US presidential win, can maintain its momentum.

 

Donald Trump's Republican Party held a narrow lead in the US House of Representatives as final votes were being counted, potentially deciding control of the chamber, according to Reuters. Despite the Republicans securing at least 211 seats — seven shy of a majority in the 435-member House — some races were still too close to call, with 24 remaining unconfirmed according to Edison Research projections. Meanwhile, Democrats managed to flip two seats in New York. In the Senate, Republicans are projected to hold a majority, with at least 53 seats. 

 

Therefore, on Friday, US markets surged, with the Dow Jones Industrial Average and S&P 500 logging their best weekly gains in a year. 

 

The Dow climbed 0.59 per cent, to close at a record high, the S&P 500 rose 0.38 per cent, briefly topping 6,000. Meanwhile, the Nasdaq rose 0.09 per cent.

 

Here's how analysts are assessing today's (November 11) trading session:

 

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

On a daily basis, the index formed a red candle, indicating weakness. Thus, on the higher side, the index's initial hurdle will be around 24,500, followed by 24,700. However, the index continues to respect the 150-day exponential moving average (DEMA) support near 23,990, as well as recent swing support near 23,800. In the immediate term, we expect the index will consolidate in the range of 23,800 to 24,700. A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance.

 

Amol Athawale, VP, technical research, Kotak Securities 

Technically, 24100/79300 and 24000/79000 would act as key support zones for the traders. If it sustains above the same, then it could retest the level of 24500/80500. Further upside may also continue which could lift the index till 24600/80800. However, below 24000/79000 the sentiment could change. Below the same, traders may prefer to exit from the trading long positions.

 

Rupak De, senior technical analyst, LKP Securities 

The 24,000 level is expected to serve as strong support for the index. If it holds above this level, Nifty bulls may still have an opportunity to regain momentum. However, a break below 24,000 could further weaken the market. The RSI indicator remains in a positive crossover, indicating that short-term momentum is likely to stay strong. In the near term, the index may recover toward 24,500, but a dip below 24,000 could lead to a market correction.