Market loses ground on FOMC uncertainty, Nifty below 19K

The domestic stock market faced another day of decline as the Nifty index dropped below the 19,000 mark on Wednesday. This downward pressure was primarily driven by India`s weak manufacturing data for October and the anticipation of the outcome of the Federal Open Market Committee (FOMC) meeting. Despite positive global cues, the Indian market opened lower and remained range-bound in the first half of the trading session. However, as the day progressed, losses extended as selling pressure increased across various sectors. This resulted in the market closing near the day`s low.

The metal sector experienced a particularly poor performance, followed closely by the IT sector. On the other hand, the realty segment continued its upward trend, showing resilience in the face of overall market downturn. Selective buying was observed in the pharma and media sectors, demonstrating some areas of market optimism. While mid and small-cap stocks also experienced corrections, they outperformed heavyweight stocks. However, the negative sentiment prevailed due to continued selling by Foreign Institutional Investors (FIIs) in the domestic market.

The barometer index, the S&P BSE Sensex slipped 283.60 points or 0.44% to 63,591.33. The Nifty 50 index lost 90.45 points or 0.47% to 18,989.15.

In the broader market, the S&P BSE Mid-Cap index declined 0.35% while the S&P BSE Small-Cap index shed 0.10%.

The market breadth was negative. On the BSE, 1,642 shares rose and 2,003 shares fell. A total of 138 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, advanced 1.88% to 12.05.

Economy:

The gross GST revenue collected in the month of October 2023 is Rs 1,72,003 crore, which is 13% higher than that in the same month last year.

India`s seasonally adjusted S&P Global India Manufacturing Purchasing Managers� Index (PMI) was at 55.5 in October, slipping from 57.5 in September to signal the slowest rate of expansion since February.

Meanwhile, the index of eight core industries in India saw a growth of 8.1% in September on an annual basis, data from the Ministry of Commerce & Industry showed Tuesday. The index had grown 12.1% in August. The index rose 7.8% YoY between April and September 2023-24.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.08% to 7.357 from its previous close of 7.351.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3375, compared with its close of 83.2425 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement declined 0.05% to Rs 60,910.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.19% to 106.86.

The United States 10-year bond yield advanced 0.55% to 4.904.

In the commodities market, Brent crude for January 2023 settlement gained 85 cents or 1% to $85.87 a barrel.

Global Markets:

The Dow Jones index futures were down 106 points, indicating a negative opening in the US stocks today.

Markets in Europe advanced while most Asian stocks ended higher on Wednesday as investors looked ahead to the key policy decision on interest rates from the U.S. Federal Reserve.

The Fed will conclude its two-day monetary policy meeting later in the day, with markets expecting the central bank to stand pat on interest rates.

China�s Caixin/S&P Global manufacturing PMI fell to 49.5 in October from 50.6 in September, marking the first contraction since July.

US stocks closed higher on Tuesday, regaining some ground at the end of a dismal month that was defined by surging interest rates.

October Auto sales impact:

Tata Motors shed 0.18%. The auto major`s domestic and international sales for October 2023 stood at 82,954 vehicles, up 5.9% compared to 78,335 units sold in October 2022. The company`s total domestic sales grew by 6% to 80,825 units sold in October 2023 from 76,537 units sold in the same period last year. Total commercial sales rose 4% year on year to 34,317 units sold in October 2023. Total passenger vehicles sales (including EV) increased by 7% YoY to 48,637 units in October 2023.

Mahindra & Mahindra (M&M) fell 0.29%. The car major announced that its overall auto sales for the month of October 2023 stood at 80,679 vehicles, registering a growth of 32% as against 61,114 vehicles sold in October 2022. Meanwhile, its total tractor sales (domestic + exports) during October 2023 were at 50,460 units, registering de-growth of 3% as against 51,994 units for the same period last year.

Bajaj Auto rose 0.53%. The company said that it has sold 471,188 auto units in the month of October 2023, which is higher by 19% as compared with 395,238 units sold in the same period last year. While the company�s domestic sales have risen by 36% to 329,618 units, exports have declined by 7% to 141,570 units in October 2023 over October 2022.

Maruti Suzuki India declined 1.61%. The company`s total sales in the month of October 2023 rose 18.92% to 199,217 units as against 167,520 units sold in the same period last year. The sales of passenger vehicles increased 19.75% to 168,047 units, while sales of light commercial vehicles jumped 33.68% to 3,894 units in October 2023 as compared with October 2022.

Eicher Motors declined 0.41%. The company�s subsidiary, VE Commercial Vehicles (VECV) reported 24.0% year on year jump in commercial vehicles (CV) sales to 7,486 units in October 2023. The total domestic sales of Eicher trucks and buses surged 27.4% to 7,077 units while total exports tumbled 43.5% to 201 units in October 2023 over October 2022.

Ashok Leyland skid 1.61%. The company`s total vehicle sales increased 13% to 16,864 units in October 2023 as compared with 14,863 units sold in October 2022.

Escorts Kubota slipped 2.35% after the company said that its Agri Machinery Business Division has sold 13,205 tractors in October 2023, which is lower by 8.9% as compared with the same period last year. The company had sold 14,492 tractors in October 2022. While domestic sales declined by 8.7% to 12,642 units, tractor exports fell by 13.3% to 563 units in October 2023 over October 2022.

Stocks in Spotlight:

Sun Pharmaceuticals Industries gained 2.52% after the drug maker�s net profit rose 5% to Rs 2,375.51 crore on 11.32% increase in revenue from operations to Rs 12,192.41 crore in Q2 FY24 over Q2 FY23. Gross sales stood at Rs 12,003.11 crore during the period under review, registering a growth of 11 YoY.

Bharti Airtel added 0.07%. The telecom major`s consolidated net profit slipped 37.5% to Rs 1,340.7 crore in Q2 FY24 as against Rs 2,145.2 crore reported in Q2 FY23. Revenue from operations grew 7.29% to Rs 37,043.8 crore in the quarter ended 30 September 2023, backed by strong and consistent performance in India operations.

Larsen & Toubro fell 1.18%. The engineering & construction major`s consolidated net profit rose 45% to Rs 3223 crore on 19% rise in revenue to Rs 51024 crore in the quarter ended 30 September 2023 over the quarter ended 30 September 2022. The company received orders worth Rs 89,153 crore at the group level during the quarter ended 30 September 2023, registering a growth of 72% on y-o-y basis. The consolidated order book is at Rs 450,734 crore as on 30 September 2023, with international orders having a share of 35%.

Tata Consumer Products added 0.27%. The FMCG company has recorded 1% rise in consolidated net profit to Rs 359 crore on a 11% increase in revenue from operations to Rs 3,734 crore in Q2 FY24 as compared with Q2 FY23.

Ambuja Cements dropped 4.18%. The cement major reported a consolidated net profit of Rs 987.24 crore in Q2 FY24, steeply higher than Rs 51.30 crore recorded in Q2 FY23. Revenue from operations grew by 4.1% year on year to Rs 7,423.95 crore in the quarter ended 30 September 2023.

Jindal Steel & Power (JSPL) tumbled 7.78%. JSPL has reported 534% rise in consolidated net profit to Rs 1,390 crore in Q2 FY24 from Rs 219 crore in Q2 FY23. Net revenue, however, declined by 9% year-over-year to Rs 12,282 crore in the second quarter from Rs 13,522 crore recorded in the same period last year.

Adani Total Gas fell 2.35%. The natural gas distribution company reported 20.42% increase in net profit to Rs 167.79 crore in Q2 FY24 as against Rs 139.34 crore recorded in Q2 FY23. Revenue from operations declined 1.03% to Rs 1,178.08 crore in Q2 FY24 from Rs 1,190.37 crore posted in corresponding quarter last year.

Adani Wilmar slipped 3.65%. The company reported consolidated net loss of Rs 131 crore in Q2 FY24 as compared with net profit of Rs 49 crore in Q2 FY23. Revenue from operations dropped 13% to Rs 12,267 crore in Q2 FY24 from Rs 14,150 crore in Q2 FY23.

Geojit Financial Services surged 7.43%. The company posted 58% jump in consolidated net profit to Rs 37.48 crore on a 30% rise in total income to Rs 145.51 crore in Q2 FY24 over Q2 FY23.

IPO Update:

The initial public offer (IPO) of Honasa Consumer received bids for 1,32,57,798 shares as against 2,88,99,514 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (1 November 2023). The issue was subscribed 46%.

The issue opened for bidding on Tuesday (31 October 2023) and it will close on Thursday (2 November 2023). The price band of the IPO is fixed at Rs 308-324 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

Cello World`s IPO received bids for 85,83,10,665 shares as against 2,20,61,947 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (1 November 2023). The issue was subscribed 38.90 times.

The issue opened for bidding on Monday (30 October 2023) and it will close on Wednesday (1 November 2023). The price band of the IPO is fixed at Rs 617-648 per share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.

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