Market resilience fuels Nifty`s rise above 19,100; realty stocks shine

The domestic stock market displayed resilience on Monday by recording its second consecutive day of gains. Despite a negative start influenced by mixed global cues, the market managed to bounce back from early losses. Strong buying activity in major stocks from the banking and oil & gas sectors contributed to this recovery, pushing the indices to close near their peak for the day. As a result, the Nifty index settled above the 19,100 mark. In the broader market, realty stocks were in demand while autos and consumer durables shares were under pressure.

The barometer index, the S&P BSE Sensex jumped 329.85 points or 0.52% to 64,112.65. The Nifty 50 index added 93.65 points or 0.49% to 19,140.90.

In the broader market, the S&P BSE Mid-Cap index gained 0.13% while the S&P BSE Small-Cap index rose 0.06%.

The market breadth was positive. On the BSE, 1,875 shares rose and 1,864 shares fell. A total of 196 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, surged 5.36% to 11.49.

Economy:

India`s foreign exchange (forex) reserves declined by $2.36 billion to $583.53 billion during the week ended October 20, according to data by the Reserve Bank of India (RBI). In the previous reporting week, the overall reserves had increased by $1.153 billion to $585.895 billion.

Gold reserves were up by $1.85 billion to $45.42 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by $70 million to $17.93 billion, according to the RBI.

Forex reserves also include India`s reserve tranche position in the IMF. India`s reserve position with the IMF increased by $6 million to $4.98 billion in the reporting week, as per the RBI data.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper advanced 0.24% to 7.369 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 83.2600, compared with its close of 83.2525 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement added 0.07% to Rs 61,200.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.05% to 106.50.

The United States 10-year bond yield gained 0.74% to 4.884.

In the commodities market, Brent crude for December 2023 settlement lost 89 cents or 0.98% to $89.59 a barrel.

Global Markets:

The Dow Jones index futures were up 179 points, indicating a positive opening in the US stocks today.

European shares advanced while most Asian stocks ended higher on Monday, ahead of a week of key economic data from around the region. Monetary policy decisions from Japan and Malaysia, inflation data from South Korea, and gross domestic growth figures from Taiwan and Hong Kong will be in focus this week.

Risk appetite was dulled by Israel`s push to surround Gaza`s main city in a self-declared "second phase" of a three-week war against Iranian-backed Hamas militants.

US stocks ended the day mixed on Friday as renewed selling occurred on Wall Street on fears of a recession. The Federal Reserve decision looms on Wednesday, where the central bank is widely expected to hold its benchmark interest rate at the same level. The Bank of England will announce its interest rate decision on Thursday.

Stocks in Spotlight:

Reliance Industries (RIL) advanced 2.04% after the Mukesh Ambani-led diversified company reported 28.15% increase in consolidated net profit to Rs 19,878 crore in Q2 FY24 as against Rs 15,512 crore posted in Q2 FY23. Gross revenue rose by 1.2% year on year (YoY) to Rs 255,996 crore in the quarter ended 30 September 2023, supported by continuing growth momentum in consumer businesses.

Suven Life Sciences soared 20% on announcing positive Phase-2 results for Samelisant (SUVN-G3031) in adult patients. Monotherapy shows significant reduction in daytime sleepiness vs. placebo (p<0.05). Other efficacy measures and safety profile support the findings. Suven plans FDA meeting to discuss results and guide Phase-3 study in Q1 2024.

IRB Infrastructure Developers rallied 3.48% after the company reported 12.24% jump in net profit to Rs 95.74 crore on 30.28% increase in total income to Rs 1,874.50 crore in Q2 FY24 over Q2 FY23.

NTPC shed 0.85%. The company reported consolidated net profit of Rs 4726.40 crore in Q2 FY24 as against net profit of Rs 3417.67 crore in Q2 FY23. Total income rose to Rs 45384.64 crore in the quarter ended September 2023 as against Rs 44681.50 crore during the previous quarter ended September 2022.

UltraTech Cement gained 2.50%. The board of directors approved the 3rd phase of growth with an investment of Rs 13,000 crore towards increasing the capacity by another 21.9 mtpa with a mix of brown field and green field projects.

Bharat Petroleum Corporation (BPCL) rallied 3.68% after the state-owned oil marketing firm reported a standalone net profit of Rs 8,501.17crore in Q2 FY24 as against a net loss of Rs 304.17 crore posted in Q2 FY23. Net sales (excluding excise duty) declined 10.3% to Rs 1,02,985.56 crore in Q2 FY24 from Rs 1,14,807.59 crore recorded in the corresponding quarter previous year.

Adani Green Energy jumped 4.95% after the company�s consolidated net profit soared 149.66% to Rs 372 crore in Q2 FY24 as compared with Rs 149 crore in Q2 FY23. Revenue from power supply jumped 80% to Rs 1,984 crore as compared with Rs 1,105 crore posted in Q2 FY23.

SBI Cards and Payment Services dropped 5.13%. The company reported 14.71% rise in net profit to Rs 602.98 crore on 22.24% increase in total income to Rs 4,221.40 crore in Q2 FY24 over Q2 FY23.

Piramal Pharma rallied 3.24%. The pharmaceutical company reported a consolidated net profit of Rs 5.02 crore in Q2 FY24 as compared to a net loss of Rs 37.34 crore in Q2 FY23. Net sales grew by 11.13% year on year to Rs 1,911.38 crore during the quarter.

Mahindra & Mahindra Financial Services slumped 11.48%. The company`s net profit dropped 47.54% to Rs 235.18 crore despite of 24.19% increase in total income to Rs 3,240.49 crore in Q2 FY24 over Q2 FY23.

IDFC First Bank slipped 3.33%. The private bank`s standalone net profit jumped 35.23% to Rs 751.32 crore on 34.52% increase in total income to Rs 8,785.8 crore in Q2 FY24 over Q2 FY23.

Supreme Industries soared 7% after the company`s consolidated net profit soared 196.50% to Rs 243.19 crore on 10.64% increase in net sales to Rs 2308.69 crore in Q2 September 2023 over Q2 September 2022.

Primary Market:

The initial public offer (IPO) of Cello World received bids for 82,88,878 shares as against 2,20,61,947 shares on offer, according to stock exchange data at 17:00 IST on Monday (30 October 2023). The issue was subscribed 0.38 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.

Cello World is a prominent player in the consumerware market in India with presence in the consumer houseware, writing instruments and stationery, moulded furniture and allied products and consumer glassware categories. The popular sub-brands under the Cello brand include Kleeno, Puro, Chef, H2O, Modustack, Maxfresh and Duro.

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