Indices rallies for 2nd day; Nifty settles above 24,450; VIX rises 1.57%

The headline indices ended with limited gains on Tuesday, rising for second day. The Nifty settled above the 24,450 mark. Private bank, bank and metal shares advanced while IT, FMCG and oil & gas shares declined.

As per provisional closing data, 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.

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, 2,248 shares rose and 1,616 shares fell. A total of 127 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.

IPO Update:

The initial public offer (IPO) of Afcons Infrastructure received bids for 20,07,17,504 shares as against 8,66,19,950 shares on offer, according to stock exchange data at 15:20 IST on Tuesday (29 October 2024). The issue was subscribed 2.32 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.

Buzzing Index:

The Nifty PSU Bank index added 3.64% to 6,758.95. The index added 6.42% in the two trading sessions.

Indian Bank (up 5.66%), State Bank of India (up 5.3%), Bank of Maharashtra (up 4.78%), Central Bank of India (up 3.5%) and Indian Overseas Bank (up 3.17%), Canara Bank (up 3.07%), Punjab & Sind Bank (up 3.04%), Punjab National Bank (up 2.92%), Union Bank of India (up 2.86%) and Bank of India (up 2.63%) edged higher.

Stocks in Spotlight:

Bharti Airtel declined 1.29%. 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 slipped 4.16% 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 1.83% 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 1.61%. 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 4.38% after the iron & steel producer 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 2.81% 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 3.08%. 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.

Restaurant Brands Asia slipped 3.19% after the company reported consolidated net loss of Rs 65.45 crore in Q2 FY25 as compared with net loss of Rs 50.65 crore in Q2 FY24. Revenue from operations advanced 1.2% YoY to Rs 632.43 crore in Q2 FY25.

Federal bank surged 8.55% 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 2.78% 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.

Spandana Sphoorty Financial tumbled 17.75% 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 10.95% 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.

Global Markets:

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

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.

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