Indices end higher for 2nd day, bank and financial stocks lead

The domestic equity benchmarks concluded Tuesday's trading session with modest gains, extending their positive streak to the second consecutive day. The Nifty 50 index closed above the 24,450 mark, buoyed by strong performances from banking and financial services stocks.

The indices opened on a flat note, influenced by mixed global cues, and spent the first half of the trading session in negative territory. However, a mid-session recovery propelled the indices to close near their daily highs. While banking and financial stocks were the primary drivers of the market's uptick, sectors like auto, pharma, and IT faced selling pressure.

The S&P BSE Sensex, was up 363.99 points or 0.45% to 80,369.03. The Nifty 50 index added 127.70 points or 0.52% to 24,466.85.

 

State Bank of India (up 5.13%), ICICI Bank (up 3.08%) and HDFC Bank (up 0.96%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.74% and the S&P BSE Small-Cap index added 0.71%.

The market breadth was positive. On the BSE, 2242 shares rose and 1623 shares fell. A total of 126 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.57% to 14.52.

Economy:

According to the monthly report by the finance ministry, the outlook for the Indian economy is good, underpinned by a stable external sector, positive agricultural outlook, expected improvements in demand supported by the festive season, and the likelihood of an increase in Government spending, which will boost investment activity. However, at the margin, demand conditions in the economy bear watching. Given the overall subdued inflation, barring a few food items, the real price of money may have gone up.

The finance ministry maintains that the Indian economy will grow between 6.5% and 7.0% in the current fiscal year. However, risks stem from global factors such as geopolitical conflicts, rising geo-economic fragmentation, uncertainties about the trade policies of major economies and consequent financial market reactions, the report noted.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.17% to 6.970 as compared with previous close 6.982.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0725, compared with its close of 84.0775 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.19% to Rs 78,715.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 104.34.

The United States 10-year bond yield grew 0.47% to 4.300.

In the commodities market, Brent crude for November 2024 settlement gained 73 cents or 1.03% to $71.73 a barrel.

Global Markets:

Dow Jones futures climbed 121 points, signalling a weak open for US stocks.

European stocks advanced on Tuesday as investors assessing the latest slew of earnings reports.

Most Asian stocks ended higher on Tuesday. Investors turned their attention to a flurry of key earnings reports due out in the coming days. While Japanese markets continued their upward trend following the ruling coalition's loss of its parliamentary majority, the broader Asian market was less enthusiastic. The Bank of Japan's upcoming meeting later this week is expected to maintain its current monetary policy stance.

US stocks closed higher on Monday, driven by hopes of easing geopolitical tensions in the Middle East. The focus is firmly on the upcoming deluge of major earnings reports and economic data releases. The S&P 500 gained 0.27% to 5,823.52, the NASDAQ Composite rose 0.26% to 18,568.05, and the Dow Jones Industrial Average outperformed with a 0.65% increase to 42,387.57.

Key economic events this week include the release of US GDP data for the third quarter on Thursday, followed by the PCE price index (the Fed's preferred inflation gauge) and nonfarm payrolls data on Friday. These figures will provide crucial insights ahead of the Fed's upcoming meeting, where a smaller 25-basis-point rate cut is widely anticipated. Additionally, the US presidential elections are scheduled for November 5th.

Stocks in Spotlight:

Federal bank surged 8.66% after the private lenders standalone net profit rose 10.78% to Rs 1,056.69 crore in Q2 FY25 as against Rs 953.82 crore posted in Q2 FY24. Total income jumped 21.91% year on year (YoY) to Rs 7,541.23 crore in the quarter ended 30 September 2024.

Tamilnad Mercantile Bank rose 2.73% after the bank's standalone net profit jumped 10.85% to Rs 303.18 crore on 14.62% increase in total income to Rs 1,564.88 crore in Q2 FY25 over Q2 FY24.

Senco Gold shares experienced a significant downturn on Tuesday, dropping 5.60%, fueled by rumors of a potential raid at the companys or its promoters premises. However, the company swiftly refuted these claims, dismissing them as speculative and inaccurate. Senco Gold assured its stakeholders that no such raid had taken place and reiterated its commitment to transparency, promising to disclose any material information as mandated by regulatory requirements.

Bharti Airtel declined 1.61%. The telecom major reported a consolidated net profit of Rs 3,593.2 crore in Q2 FY25, steeply higher than Rs 1,340.7 crore posted in Q2 FY24. revenue from operations increased 11.95% YoY to Rs 41,473.3 crore in Q2 FY25, driven by strong momentum in India and sustained constant currency growth in Africa.

Maruti Suzuki India dropped 4.11% after the company reported 17.4% fall in net profit to Rs 3,069.2 crore as sales remained almost flat at Rs 35,589.1 crore in Q2 FY25 as compared with Q2 FY24.

Adani Ports and Special Economic Zone (APSEZ) added 1.52% after the company consolidated net profit jumped 39.86% to Rs 2,445 crore on 6.32% rise in revenue from operations to Rs 7067.02 crore in Q2 FY25 over Q2 FY24.

Cipla fell 1.69%. The pharma majors consolidated net profit jumped 15.18% to Rs 1,302.53 crore in Q2 FY25 as against Rs 1,130.91 crore reported in Q2 FY24. Total revenue from operations grew by 5.58% year on year (YoY) to Rs 7,051.02 crore in the quarter ended 30 September 2024.

Maharashtra Seamless advanced 4.15% after the company reported 70.25% jump in consolidated net profit to Rs 220.08 crore on a 12.24% rise in net sales to Rs 1,291.81 crore in Q2 FY25 over Q1 FY25.

Canara Bank advanced 3.03% after the company's standalone net profit jumped 11.32% to Rs 4,014.53 crore on 10.32% increase in total income to Rs 34,721.07 crore in Q2 FY25 over Q2 FY24.

Indraprastha Gas added 3.10%. The consolidated net profit declined 17.69% to Rs 454.88 crore in Q2 FY25 as compared with Rs 552.67 crore in Q2 FY24. Howerver, revenue from operations (excluding excise duty) rose 6.91% to Rs 3,697.6 crore in Q2 FY25 from Rs 3,458.51 crore posted in Q2 FY24.

Sumitomo Chemical India climbed 7.66% after its consolidated net profit rose 34.05% to Rs 192.29 crore on 9.39% rise in net sales to Rs 988.30 crore in Q2 September 2024 over Q2 September 2023.

Spandana Sphoorty Financial tumbled 17.47% after the microfinancier reported a consolidated net loss of Rs 216 crore in Q2 FY25 as against a net profit of Rs 125 crore in Q2 FY24. Total income fell by 4% YoY to Rs 707 crore during the quarter. Net interest income (NII) rose by 9% to Rs 341 crore in Q2 FY25 over Q2 FY24.

Ideaforge Technology dropped 10.61% after the company reported net loss of Rs 13.72 crore in Q2 FY25 as compared with net profit of Rs 0.89 crore in Q2 FY24. Revenue from operations increased 56.34% YoY to Rs 37.10 crore in Q2 FY25.

IPO Update:

The initial public offer (IPO) of Afcons Infrastructure received bids for 22,78,13,728 shares as against 8,66,19,950 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (29 October 2024). The issue was subscribed 2.63 times.

The issue opened for bidding on Friday (25 October 2024) and it will close on Tuesday (29 October 2024). The price band of the IPO is fixed between Rs 440 to Rs 463 per share. An investor can bid for a minimum of 32 equity shares and in multiples thereof.

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