Sensex drops 663 pts, Nifty ends below 24,200; IndusInd Bank cracks 19%

The domestic equity barometers took a significant tumble today, extending their losing streak to five days. The Nifty closed below the 24,200 level, dragged by consumer durables, energy and metal shares. The recent "buy on dips" strategy, which had been a reliable tactic for the past few years, is now faltering in the face of sustained FII selling and a weakening global economic outlook. Factors such as rising bond yields, a strengthening dollar, and uncertainty surrounding the US election are also contributing to the market's decline.

The S&P BSE Sensex, dropped 662.87 points or 0.83% to 79,402.29. The Nifty 50 index slipped 218.60 points or 0.90% to 24,180.80. The 50-unit index fell 2.71% in the past five sessions.

 

IndusInd Bank (down 18.56%), Adani Enterprises (down 4.76%) and Larsen & Toubro (down 3.35%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 1.48% and the S&P BSE Small-Cap index dropped 2.44%.

The market breadth was weak. On the BSE, 841 shares rose and 3100 shares fell. A total of 80 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 4.74% to 14.63.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 2.04% to 6.961 as compared with previous close 6.935.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0850, compared with its close of 84.0750 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement shed 0.48% to Rs 77,950.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 104.04.

The United States 10-year bond yield rose 0.05% to 4.203.

In the commodities market, Brent crude for December 2024 settlement added 51 cents or 0.69% to $74.89 a barrel.

Global Markets:

European stocks declined while Asian shares ended mixed on Friday.

Japanese shares declined in anticipation of a hotly contested general election this Sunday. Concerns about potential currency market intervention by the Japanese government, as the yen approached three-month lows, also weighed on sentiment.

Soft inflation data further pressured the yen. The October headline Tokyo Consumer Price Index (CPI) rose 1.8% year-over-year (YoY), compared to 2.2% in the previous month, according to the Statistics Bureau of Japan.

U.S. equities were mixed on Thursday as investors prepared for a series of major tech earnings reports. Rising geopolitical tensions in the Middle East, with Israel threatening a strike against Iran, also dampened risk appetite. The Dow Jones Industrial Average fell 0.33%, while the S&P 500 rose 0.21%, and the NASDAQ Composite gained 0.76%.

Tesla led the broader market index, surging nearly 22% after reporting third-quarter results that exceeded expectations. This marked its best day since 2013. Whirlpool and UPS also climbed after posting strong results.

IBM dragged down the Dow, falling over 6% as its consulting revenue narrowly missed estimates. Boeing slipped 1.2% after its machinists rejected a new labor contract.

Stocks in Spotlight:

IndusInd Bank tumbled 18.56% after the bank reported 39.24% decline in standalone net profit to Rs 1,325.45 crore in Q2 FY25 as against Rs 2,181.47 crore posted in Q2 FY24. However, total income increased 9.91% year on year (YoY) to Rs 14,870.18 crore in the quarter ended 30 September 2024.

NTPC fell 3.13%. The state-run power generation firm's consolidated net profit rose 14.30% to Rs 5274.59 crore on 0.64% decline in net sales to Rs 44696.30 crore in Q2 September 2024 over Q2 September 2023.

ITC advanced 2.17% after the diversified conglomerates net profit rose 3.07% to Rs 4,917.45 crore in Q2 FY25 as against Rs 4,926.96 crore posted in Q2 FY24. Net revenue (excluding excise duty) was at Rs 19,150.32 crore in Q2 FY25, up 16.81% from Rs 16,393.74 crore recorded in the corresponding quarter previous year.

Nippon Life India Asset Management added 1.14%. The companys consolidated net profit jumped 47.33% to Rs 360.10 crore on 45.59% rise in total income to Rs 692.08 crore in Q2 FY25 over Q2 FY24.

Kirloskar Pneumatic surged 9.77% after the companys net profit zoomed 234.64% to Rs 67.53 crore while revenue from operations surged 52.76% to Rs 430.67 crore in Q2 September 2024 over Q2 September 2023.

Shriram Properties dropped 3.67% as the Enforcement Directorate officials are conducting search activity in the company's office premises in Bengaluru and Chennai. Shriram Properties stated that it is fully cooperating with the ED officials and emphasized that it is committed to fair practices and compliance with applicable regulations.

Godrej Consumer Products rallied 3.10% after the companys consolidated net profit increased 13.53% to Rs 491.31 crore on 2.3% rise in total income to Rs 3,752.32 crore in Q2 FY25 over Q2 FY24.

Radico Khaitan declined 1.80%. The companys standalone net profit jumped 32.82% to Rs 82.19 crore on 20.68% increase in net sales to Rs 1,116.30 crore in Q2 FY25 over Q2 FY24.

Mahanagar Gas slipped 3.06% after the company reported 16.5% fall in standalone net profit to Rs 282.8 crore despite a 9% rise in net revenue from operations to Rs 1,711.62 crore in Q2 FY25 over Q2 FY24.

VST Industries dropped 9.75% after the companys standalone net profit fell 37.38% to Rs 47.56 crore on 3.12% increase in revenue from operations (excluding excise duty) to Rs 358.95 crore in Q2 FY25 over Q2 FY24.

Suryoday Small Finance Bank slumped 12.46% after the bank reported 9.76% decline in net profit to Rs 45.39 crore in Q2 FY25 as against Rs 50.30 crore posted in Q2 FY24. However, total income jumped 29.89% YoY to Rs 554.65 crore in the quarter ended 30 September 2024.

Glenmark Life Sciences fell 9.78% after the companys standalone net profit declined 19.72% to Rs 95.32 core on 14.86% slide in revenue from operations to Rs 506.88 crore in Q2 FY25 over Q2 FY24.

Bikaji Foods International rallied 3.30% after the company reported 14.7% rise in net profit to Rs 68.6 crore on a 26% increase in total revenue from operations to Rs 721.2 crore in Q2 FY25 over Q2 FY24.

R R Kabel lost 6.29% after the companys consolidated net profit declined 33.16% to Rs 49.52 crore in Q2 FY25 as against Rs 74.09 crore in Q2 FY24. Revenue from operations was at Rs 1,810.13 crore in second quarter of FY25, marking a growth of 12.45% as against Rs 1,609.67 crore in Q2 FY24.

IPO Update:

The initial public offer (IPO) of Afcons Infrastructure received bids for 85,94,016 shares as against 8,66,19,950 shares on offer, according to stock exchange data at 17:00 IST on Friday (25 October 2024). The issue was subscribed 0.10 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.

Godavari Biorefineries' IPO received bids for 2,06,16,288 shares as against 1,12,74,739 shares on offer, according to stock exchange data at 17:00 IST on Friday (25 October 2024). The issue was subscribed 1.83 times.

The issue opened for bidding on Wednesday (23 October 2024) and it will close on Friday (25 October 2024). The price band of the IPO is fixed between Rs 334 to Rs 352 per share. An investor can bid for a minimum of 42 equity shares and in multiples thereof.

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