The key equity benchmarks concluded the week with minor losses, despite of a positive global sentiment triggered by a quarter point rate cut by the US Fed. The equity market edged lower in three out of five trading sessions in this week. The Nifty closed below the 24,150 mark.
In the week ended on Friday, 25 October 2024, the S&P BSE Sensex declined 237.8 points or 0.30% to settle at 79,486.32. The Nifty 50 index shed 156.15 points or 0.64% to settle at 24,148.20. The BSE Mid-Cap index slipped 0.44% to close at 46,080.07. The BSE Small-Cap index decreased 1.27% to end at 54,913.85.
Weekly Index Movement:
The domestic equity benchmarks plunged on Monday. In the barometer index, the S&P BSE Sensex, tanked 941.88 points or 1.18% to 78,782.24. The Nifty 50 index dropped 309 points or 1.27% to 23,995.35.
The domestic equity benchmarks ended Tuesday's trading session with significant gains. The S&P BSE Sensex rallied 694.39 points or 0.88% to 79,476.63. The Nifty 50 index advanced 217.95 points or 0.91% to 24,213.30.
The benchmark equity indices surged to significant gains on Wednesday, marking the second consecutive day of upward momentum. The S&P BSE Sensex surged 901.50 points or 1.13% to 80,378.13. The Nifty 50 index jumped 270.75 points or 1.12% to 24,484.05.
The domestic equity markets suffered a significant setback on Thursday, erasing recent gains and closing the day in the red. The S&P BSE Sensex dropped 836.34 points or 1.04% to 79,541.79. The Nifty 50 index fell 284.70 points or 1.16% to 24,199.35.
The key domestic indices ended with limited losses on Friday, declining for the second day in a row. The barometer index, the S&P BSE Sensex declined 55.47 points or 0.07% to 79,486.32. The Nifty 50 index lost 51.15 points or 0.21% to 24,148.20.
Economy:
The HSBC final Manufacturing Purchasing Managers' Index rose to 57.5 in October from an eight-month low of 56.5 in September. The flash reading was 57.4. A score above 50.0 indicates expansion.
RBI has released monthly data on India’s International Trade in Services for the Month of September 2024 on Thursday. The value of exports and imports of services during September 2024 stood at $32,579 million, up 14.6% on year and $16,507 million, up 13.2%, respectively.
India's services activity growth recovered from September's ten-month low on sharper expansion in output and new business, final data from S&P Global showed on Wednesday. The HSBC final services Purchasing Managers' Index registered 58.5 in October, up from 57.7 in September. The flash score was 57.9.
The HSBC composite output index rose to 59.1 from September's ten-month low of 58.3. The final score was above the initial estimate of 58.6.
Nifty stocks in spotlight:
Maruti Suzuki India added 1.75%. The car manufacturer announced that its total production increased marginally to 177,312 units in October 2024 as against 176,437 units recorded in October 2023.
Mahindra & Mahindra jumped 5.76%. The company reported 13.2% rise in standalone net profit to Rs 3,840.88 crore on 12.25% increase in income from operations to Rs 28,919.34 crore in Q2 FY25 over Q2 FY24. Meanwhile, the auto major’s overall auto sales grew by 19.79% to 96,648 vehicles sold in October 2024 as against 80,679 vehicles sold in October 2023.
Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during October 2024 was at 65,453 units, up 29.71% from 50,460 units in October 2023.
Bajaj Auto rose 0.33%. The auto major reported 2% rise in total auto sales to 4,79,707 units in October 2024 as against 4,71,188 units in October 2023.
Eicher Motors decreased 3.25%. The company’s unlisted subsidiary, VE Commercial Vehicles (VECV) reported 5% year on year decrease in commercial vehicles (CV) sales to 7,112 units in October 2024. Further, the company said that it has sold highest ever monthly motorcycles sales in October 2024 at 1,10,574 units, which is higher by 30.96% as compared with 84,435 units in October 2023.
JSW Steel increased 3.02%. The steel major said that its crude steel production declined 1% to 22.81 lakh tonnes in October 2024 as compared with 23.12 lakh tonnes in October 2023.
Titan Company declined 3.25%. The company reported 25% decline in standalone net profit to Rs 705 crore in Q2 FY25 as against Rs 940 crore posted in Q2 FY24. However, revenue from operations jumped 23.88% year on year (YoY) to Rs 12,268 crore in the quarter ended 30 September 2024.
Hindalco Industries slipped 5.82%. The company’s subsidiary Novelis Inc. reported 18% drop in net income to $128 million in the second quarter of fiscal year 2025. Net sales for the second quarter of fiscal year 2025 increased 5% versus the prior year period to $4.3 billion, mainly driven by higher average aluminum prices and a 1% increase in total flat rolled product shipments to 945 kilotonnes.
Tata Steel declined 1.57%. The steel major reported consolidated net profit of Rs 758.84 crore in Q2 FY25 as against net loss of Rs 6,511.16 crore reported in Q2 FY24. Total revenue from operations declined 3.19% year on year (YoY) to Rs 53,904.71 crore in the quarter ended 30 September 2024.
Trent dropped 11.97%. The retail major’s consolidated net profit declined 14.35% to Rs 335.06 crore in Q2 FY25 as against Rs 391.21 crore in Q1 FY25. However, revenue from operations rose 1.27% quarter on quarter (QoQ) to Rs 4,156.67 crore in the quarter ended 30 September 2024. On YoY basis, the firm’s consolidated net profit jumped 39.37% and revenue from operations surged 46.92% during the quarter.
Apollo Hospitals Enterprise jumped 5.29%. The company reported 62.64% surge in consolidated net profit to Rs 378.8 crore on 15.31% increase in revenue from operations to Rs 5,589.3 crore in Q2 FY25 over Q2 FY24.
State Bank of India (SBI) rose 2.44%. The largest PSU bank’s standalone net profit rose 27.92% to Rs 18,331.44 crore on 15.13% increase in total income to Rs 129,141.11 crore in Q2 FY25 over Q2 FY24.
Global Markets:
The US economy added only 12,000 jobs in October, far below the expected 106,000 and a sharp decline from the revised 223,000 in September. However, these figures were impacted by recent hurricanes and ongoing labor actions. The softer-than-expected payrolls data has intensified expectations of further interest rate cuts by the Federal Reserve.
Trump's victory, coupled with a Republican majority in Congress, suggests fewer obstacles for the 47th President in enacting significant policy reforms. He is expected to pursue a looser fiscal policy, while his protectionist trade and immigration stances are anticipated to strengthen the dollar.
The US Federal Reserve reduced interest rate by 25 basis points to a range of 4.5% to 4.75% on Thursday.
In Europe, the Bank of England cut interest rates on Thursday for only the second time since 2020 and said future reductions were likely to be gradual, seeing higher inflation and growth after the new government's first budget. The Monetary Policy Committee voted 8-1 to cut interest rates to 4.75% from 5%.