MARKET SLUMPS FOR SEVENTH STRAIGHT DAY; IT SHARES DRAG

Domestic equity benchmarks continued their downward spiral on Monday, marking their seventh consecutive session of losses. The Nifty index closed below the 24,500 level, despite a brief surge to 23,606.80 earlier in the day. The sharp decline was primarily driven by a sell-off in IT and energy stocks. However, metals and FMCG sectors managed to buck the negative trend.

Investor sentiment remains fragile due to a confluence of factors, including concerns over the US Federal Reserve potentially slowing its pace of interest rate cuts. Disappointing domestic Q2 earnings, persistent FII outflows, and stretched valuations have further added to the market`s woes.

The barometer index, the S&P BSE Sensex declined 241.30 points or 0.31% to 77,339.01. The Nifty 50 index lost 78.90 points or 0.34% to 23,453.80. The 50-unit index dropped 4.21% in seven consecutive trading sessions.

TCS (down 3.05%), Infosys (down 2.82%) and Trent (down 2.40%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.17% and the S&P BSE Small-Cap index declined 0.69%.

The market breadth was weak. On the BSE, 1,569 shares rose and 2,532 shares fell. A total of 123 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, advanced 2.65% to 15.17.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.61% to 6.937 as compared with previous close 6.827.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4000, compared with its close of 83.4600 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.88% to Rs 74,598.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.03% to 106.66.

The United States 10-year bond yield added 0.79% to 4.464.

In the commodities market, Brent crude for January 2025 settlement added 68 cents or 0.96% to $71.72 a barrel.

Global Markets:

The Dow Jones index future was down 159 points, signaling a weak opening for U.S. stocks today.

Most European shares declined on Monday as investors awaited several key regional data points, including the latest inflation figures from the U.K. set to be released on Wednesday.

Most Asian stocks ended lower as traders tempered expectations for Federal Reserve interest rate cuts following recent signs of US economic resilience.

Japanese and Australian shares fell. South Korea�s benchmark bucked the trend, led by Samsung Electronics Co.�s rally after it announced a stock buyback plan.

Later on Monday, traders will be watching a speech and media briefing by Bank of Japan Governor Kazuo Ueda for clues on the central bank`s next policy move, particularly regarding the weakening yen.

United States equities were lower at the close on Friday, as the post-election rally faded. Strong economic data fueled concerns about fewer Fed rate cuts. At the close in NYSE, the Dow Jones Industrial Average lost 0.70%, while the S&P 500 index declined 1.32%, and the NASDAQ Composite index fell 2.25%.

Applied Materials dropped 9% after a disappointing earnings report, citing slowing demand from China.

US retail sales increased slightly more than expected in October, rising 0.4% last month above the 0.3% expected, and compared with the upwardly revised 0.8% advance in September. Robust consumer spending helped the economy maintain its strong pace of growth last quarter.

At the same time, US import prices unexpectedly rose in October, rebounding 0.3% last month after an unrevised 0.4% decline in September, the latest indication of lack of progress lowering inflation in recent months.

Stocks in Spotlight:

Shares of city gas distributors, Indraprastha Gas (down 20%), Mahanagar Gas (down 13.8%), Gujarat Gas (down 6.8%), Adani Total Gas (down 2.13%) and Gail (India) (down 2%) tumbled, following the government`s decision to reduce domestic gas allocation to city gas distributors by ~20% for the second straight month.

Hero Motocorp jumped 2.75% after the company reported 14.2% increase in consolidated net profit to Rs 1,203.54 crore on 10.8% rise in revenue from operations to Rs 10,463.21 crore in Q2 FY25 over Q2 FY24.

Honasa Consumer (Mamaearth) hit a lower circuit of 20% after the company reported a consolidated net loss of Rs 18.57 crore in Q2 FY25 as against net profit Rs 29.43 crore recorded in Q2 FY24. Revenue from operations declined 6.90% YoY to Rs 461.82 crore in the quarter ended 30 September 2024.

Muthoot Finance rallied 6.18% after the company reported 26.25% jump in standalone net profit to Rs 1,251.14 crore on 34.57% increase in total income to Rs 4,117.44 crore in Q2 FY25 over Q2 FY24.

Crompton Greaves Consumer Electricals gained 3.42% after the company�s standalone net profit jumped 30.05% to Rs 123.28 crore on 11.45% increase in revenue from operations to Rs 1,645.33 crore in Q2 FY25 over Q2 FY24.

Bharat Global Developers hit an upper circuit of 5% after its board approved bonus issue in the ratio of 8:10 and stock split in the ratio of 1:10.

Hinduja Global Solutions (HGS) tumbled 7% after the company reported a consolidated net loss of Rs 50.51 crore in Q2 FY25 as against a net profit of Rs 18.43 crore in Q2 FY24. Revenue from operations slipped 7.85% to Rs 1,087.15 in Q2 FY25 as against Rs 1,179.86 crore posted in the second quarter of FY24.

Regis Industries surged 15.24% after the company`s board approved 10-for-1 stock split.

Avanti Feeds advanced 3.42% after the company reported 53.11% jump in consolidated net profit to Rs 113.65 crore on 5.99% increase in revenue from operations to Rs 1,355.09 crore in Q2 FY25 over Q2 FY24.

Swan Energy rallied 6.71%. The company�s consolidated net profit tumbled 39.38% to Rs 51.27 crore on 15.61% decline in revenue from operations to Rs 1032.19 crore in Q2 FY25 over Q2 FY24.

Anupam Rasayan India fell 3% after the company reported 37.11% decline in consolidated net profit to Rs 30.62 crore on 25.04% fall in revenue from operations to Rs 293.96 crore in Q2 FY25 over Q2 FY24.

Ahluwalia Contracts (India) slipped 3% after the civil construction company�s consolidated net profit declined 29.78% to Rs 38.67 crore in Q2 FY25 as against Rs 55.07 crore posted in Q2 FY24. Revenue from operations increased 12.19% year on year (YoY) to Rs 1,011.48 crore in the quarter ended 30 September 2024.

IPO Update:

The initial public offer (IPO) of Zinka Logistics Solutions received bids for 4,19,40,018 shares as against 2,25,67,270 shares on offer, according to stock exchange data at 17:00 IST on 18 November 2024. The issue was subscribed 1.86 times.

The issue opened for bidding on 13 November 2024 and it will close on 18 November 2024. The price band of the IPO is fixed between Rs 259 to Rs 273 per share. An investor can bid for a minimum of 54 equity shares and in multiples thereof.

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