Market Today: Afcons Infra IPO opens today, IndiGo Q2, Gold at record, FIIs

Stock Market Today, October 25, 2024: Indian benchmark indices, Nifty50 and Sensex, are likely to see another muted start today, following a subdued previous session.

 

The benchmark equity indices BSE Sensex and NSE Nifty50 ended Thursday’s session on a flat note, leaning slightly negative. The Sensex closed at 80,065.16, down 16.82 points, while the Nifty50 fell 36.10 points to 24,399.40. 

 

That said, quarterly earnings will be a key focus for investors on the last trading day of the week. The GIFT Nifty indicated a flat start, with an uptick of 12 points at 6:35 AM, trading at 24,464.5.

 

 

Quarterly earnings  

Investors will react to earnings reports from major companies, including NTPC and ITC. ITC Q2 standalone profit rose 3 per cent Y-o-Y to Rs 5,078.3 crore, with revenue soared 16.8 per cent Y-o-Y to Rs 19,327.7 crore. On the other hand, NTPC reported a 14 per cent rise in consolidated net profit to Rs 5,380.25 crore for Q2FY25. Meanwhile, cement maker ACC reported a consolidated profit after tax of Rs 199.7 crore for Q2FY25 

 

Earnings today  

Investors will also watch out for earnings from JSW Steel, BoB, DLF, BPCL, IndiGo, and Coal India among several others. Additionally, ICICI Bank, IDFC First Bank, Yes Bank, Godawari Power & Ispat, and JK Cement will announce their results on October 26.

 

Also Read: India Inc Q2FY25 revenue growth seen at 5-7 per cent, slowest in 4 yrs: CRISIL

 

Key drivers

 

The private sector economy in India showed a slight improvement in October, rebounding from last month’s slowdown. The HSBC flash India Composite Purchasing Managers' Index (PMI) rose to 58.6 from September’s 58.3. READ MORE

 

According to a Reuters report, a senior International Monetary Fund (IMF) official stated that most Asian central banks have the capacity to cut interest rates, as the beginning of the US monetary easing cycle alleviates concerns about potential currency weakening. However, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, cautioned that risks to Asia's economic outlook are leaning towards the downside due to early indications of a potential decline in global demand.

 

Finance Ministry review 

The Department of Financial Services (DFS) Secretary, M Nagaraju, will chair a review meeting with the MDs and CEOs of public sector banks on November 5. The agenda includes discussing the progress of a credit rating system for micro, small, and medium enterprises (MSMEs) announced in the 2024-25 Union Budget, along with co-lending regulations for banks and non-banking financial companies. READ MORE

 

Also Read: FM Nirmala Sitharaman calls for deeper dialogue on global sovereign debt

 

Sebi chief skips parliamentary panel questioning 

The parliamentary panel questioning SEBI chairperson Madhabi Puri Buch has been adjourned, as she cited “personal exigencies” for her absence.

 

Institutional activity 

On October 24, foreign institutional investors (FIIs) continued their selling trend, offloading shares worth Rs 5,062.45 crore, while domestic institutional investors (DIIs) bought shares worth Rs 3,620.47 crore.

 

Also Read: MF investors bet over Rs 17K crore on key equity schemes amid selloff

 

IPO corner 

Afcons Infrastructure Limited IPO (Mainline) will open for subscription today. Shapoorji Pallonji Group's flagship infrastructure engineering and construction firm has raised Rs 1,621 crore from anchor investors ahead of its public offering. The company has allocated over 3.5 crore equity shares to 80 funds at Rs 463 each, the upper end of its price band. 

 

Meanwhile, Godavari Biorefineries Limited IPO (Mainline) will conclude its subscription today, having recorded a 54 per cent subscription rate on day two. 

 

Usha Financial Services Limited IPO (SME) enters Day 2 of its subscription, while the Danish Power IPO (SME), United Heat Transfer IPO (SME), and OBSC Perfection IPO (SME) will see their allotments today. 

Also Read: Swiggy cuts valuation target for IPO to $12.5-13.5 bn due to mkt volatility

 

Asia-Pacific Markets 

Asia-Pacific markets showed mixed performance on Friday as investors looked ahead to Japan’s general election over the weekend. 

 

Meanwhile, investors are assessing inflation data from Tokyo. Tokyo's headline inflation rate fell to 1.8 per cent in October from 2.2 per cent in September. Core inflation, which excludes fresh food prices, also dropped to 1.8 per cent, down from 2 per cent. Economists surveyed by Reuters had predicted a core inflation rate of 1.7 per cent.

 

Additionally, the Bank of Japan will hold its monetary policy meeting on October 30 and 31.

 

Consequently, the benchmark Nikkei 225 declined 0.52 per cent following the inflation report, and the Topix index fell 0.41 per cent, marking its fifth consecutive day of losses. In contrast, South Korea's Kospi gained 1 per cent, while the small-cap Kosdaq rose 0.42 per cent. Australia’s S&P/ASX 200 opened 0.41 per cent higher.

 

Wall Street 

In the US, the S&P 500 rebounded on Thursday, driven by a nearly 22 per cent surge in Tesla shares, which marked its best day since 2013 after the company reported stronger-than-expected Q3 results. The Nasdaq Composite rose by 0.76 per cent, while the Dow Jones Industrial Average slipped 0.33 per cent, recording its first four-day losing streak since June.

 

On the economic front, the number of individuals filing for unemployment benefits fell by 15,000 to 227,000 for the week ending October 19, the lowest level since the beginning of the month and well below expectations of 242,000.

 

The S&P Global Flash US Manufacturing PMI increased to 47.8 in October, up from a 15-month low of 47.3 in September, though it still indicated a contraction in the manufacturing sector for the fourth consecutive month, albeit at a slower rate. Meanwhile, the S&P Global US Services PMI rose slightly to 55.3 from 55.2, marking the fifth straight month of robust growth above the 55 threshold. This growth was driven by a significant rise in new orders, largely fueled by strong domestic demand, which helped offset a decline in new export business.

 

Commodity check 

Oil prices dropped nearly 1 per cent on Thursday amid concerns over slow economic growth in Europe, coupled with Middle East conflict woes. Brent futures fell to $74.38 per barrel, while US West Texas Intermediate crude settled at $70.19. In contrast, gold prices rose nearly 1 per cent, bolstered by safe-haven demand, trading near record highs at $2,736.16 per ounce.

 

Here's how analysts are assessing today's (October 25) trading session:

 

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

If the index sustains above 24,480, it might witness a pullback toward the 24,600-24,700 range, which corresponds to the neckline of the head and shoulder pattern. On the other hand, if the Nifty breaks below 24,340, weakness might extend to 24,200-24,000 levels. Traders are advised to use any bounce to book profits, considering the overall weakness.

 

Shrikant Chouhan, head of equity research, Kotak Securities

  For the day traders now, 24450/80200 would be the crucial resistance zone. Above the same, the market could bounce back till 24600-24625/80500-80800. On the flip side, below 24350/79850 the selling pressure is likely to accelerate. Below the same, the market could slip till 24250-24200/79500-79300.

 

Rupak De, senior technical analyst, LKP Securities 

The sentiment remains weak as no follow-up buying was visible, despite the formation of a bullish reversal pattern after a significant correction. During the day, it found support around the 38.20% Fibonacci retracement of the previous rally from June 2024 low of 21,281 to all time high of 26,277. Going forward, a recovery might occur in Nifty unless 24,350 is breached. On the higher end, it could move towards 24,650-24,700. However, a fall below 24,350 could trigger a more serious correction.