Market rises for 2nd day on positive global cues, Nifty ends above 19,200

The stock market witnessed another day of gains on Friday, extending its rally fueled by positive global cues and decent Q2 numbers. During the trading session, the Nifty 50 encountered resistance between the 19,250 and 19,300 levels. The Bank Nifty index initiated the day on a strong note but faced consolidation at higher levels. It encountered difficulty in breaching the immediate resistance level of 43,500. The overall market sentiment remained positive, with various sectors contributing to the upward movement. Notable gains were witnessed in realty, media, and banking shares.

The benchmark Sensex climbed 282.88 points or 0.44% to close at 64,363.78, while the Nifty surged by 97.30 points or 0.51% to close at 19,230.60.

Titan Company (up 2.23%), ICICI Bank (up 1.54%) and Infosys (up 1.36%) boosted the indices.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.71% while the S&P BSE Small-Cap index gained 94%.

The market breadth was strong. On the BSE, 2267 shares rose and 1422 shares fell. A total of 129 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 1.73% to 10.88.

Economy:

India`s S&P Global India Services Purchasing Managers` Index (PMI) declined to 58.4 in October as compared to 61 in September, signaling the slowest rate of expansion since March. Still, the headline figure remained well above the 50-mark separating growth from contraction for the 27th straight month.

Meanwhile, the S&P Global India Composite PMI Output Index fell from 61 in September to 58.4 in October, indicating the weakest rate of expansion since March.

Numbers to track:

The yield on India`s 10-year benchmark federal paper shed 0.05% to 7.318 from its previous close of 7.322.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.2950, compared with its close of 83.2200 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement gained 0.05% to Rs 60,940.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.15% to 105.97.

The United States 10-year bond yield declined 0.15% to 4.663.

In the commodities market, Brent crude for January 2024 settlement shed 14 cents or 0.16% to $86.71 a barrel.

Global Markets:

Markets in Europe and Asia advanced on Friday, buoyed by positive performance on Wall Street and growing speculation that the Federal Reserve had concluded its series of interest rate hikes. However, market attention remained primarily focused on the upcoming release of crucial U.S. payrolls data later in the day.

The Caixin China General Services Purchasing Managers` Index (PMI) edged up slightly to 50.4 in October from 50.2 in September. The muted expansion was primarily attributed to subdued domestic demand, although foreign demand for Chinese services improved, particularly from overseas visitors.

Japan markets were shut for a public holiday.

US stocks rose on Thursday as Treasury yields fell, with investors betting the Federal Reserve could be done raising rates for 2023.

Stocks in Spotlight:

Tata Motors advanced 1.73% after the auto major reported a consolidated net profit of Rs 3,764 crore in Q2 FY24 as against a net loss of Rs 944.61 crore recorded in Q2 FY23. Total revenue from operations stood at Rs 1,05,128.24 crore in the quarter ended 30 September 2023, rising 32.05% YoY. Tata Motors said that it continued strong performance in Q2 FY24 as all auto verticals continued their profitable growth trajectory.

Titan Company advanced 2.23% after the Tata Group company`s standalone net profit increased 9.68% to Rs 940 crore in Q2 FY24 as against Rs 857 crore reported in Q2 FY23. Revenue from operations jumped 21.75% year on year to Rs 9,903 crore in the quarter ended 30 September 2023. During the quarter, the company`s income from jewellery business surged 19% YoY to Rs 8,575 crore.

Godfrey Phillips India tumbled 8.53% after the cigarette maker reported consolidated net profit of Rs 202.08 crore in Q2 FY24 as against Rs 201.82 crore posted in Q2 FY23. However, revenue from operations grew by 13.66% YoY to Rs 1,150.45 crore in the quarter ended 30 September 2023.

Zomato rallied 8.28% after the online food delivery platform reported consolidated net profit of Rs 36 crore in Q2 FY24 as against a net loss of Rs 251 crore posted in Q2 FY23. Revenue from operations jumped 71.46% to Rs 2,848 crore in Q2 FY24 as against Rs 1,661 crore posted in corresponding quarter last year.

Marksans Pharma added 2.97% after the company announced that its wholly owned subsidiary Time-Cap Laboratories, Inc. has received establishment inspection report (EIR) from the US FDA.

Adani Ports and Special Economic Zone (APSEZ) gained 2.75% after the company recorded its highest ever monthly cargo volume of 37 million metric tons (MMT) in October 2023, implying a YoY growth of 48%.

MRF fell 2.52%. The tyre maker reported a consolidated net profit of Rs 586.66 crore in Q2 FY24, steeply higher than Rs 129.86 crore posted in Q2 FY23. Revenue from operations grew by 6.71% year on year to Rs 6,217.10 crore in the quarter ended 30 September 2023.

JK Lakshmi Cement jumped 10.85% after the company reported 41% rise in standalone net profit to Rs 83.03 crore in Q3 FY24 from Rs 58.95 crore in Q2 FY23. Net sales rose by 12% year over year to Rs 1,452.62 crore in the second quarter.

Escorts Kubota added 0.78%. The tractor maker`s standalone net profit zoomed to Rs 235 crore in Q2 FY24 as compared with Rs 87.66 crore posted in Q2 FY23. Revenue from operations rose 8.64% YoY to Rs 2,046.18 crore in the quarter ended 30 September 2023.

Tilaknagar Industries zoomed 13.46% after the firm�s consolidated net profit stood at Rs 37.04 crore in Q2 FY24, steeply higher than Rs 13.88 crore recorded in Q2 FY23. Revenue from operations grew by 29.1% year on year (YoY) to Rs 354.39 crore in the quarter ended 30 September 2023.

Container Corporation of India`s (CONCOR) rallied 5.07% after the company`s consolidated net profit jumped 21.1% to Rs 367.36 crore in Q2 FY24 from Rs 303.47 crore in Q2 FY23. Revenue from operations grew 10.5% year on year (YoY) to Rs 2,194.87 crore during the period under review.

Ratnamani Metals & Tubes advanced 5.50% after the company�s consolidated net profit jumped 65.9% to Rs 163.89 crore in Q2 FY24 as compared with Rs 98.78% crore in Q2 FY23. Revenue from operations stood at Rs 1,131.20 crore in the September 2023 quarter, registering a growth of 25.71% year on year (YoY).

UCO Bank shed 0.90% after the bank�s standalone net profit declined 79.25% to Rs 401.67 crore on 18.14% increase in total income to Rs 5,865.61 crore in Q2 FY24 over Q2 FY23.

IPO Update:

The initial public offer (IPO) of ESAF Small Finance Bank received bids for 10,02,26,500 shares as against 5,77,28,408 shares on offer, according to stock exchange data at 17:00 IST on Friday (3 November 2023). The issue was subscribed 1.74 times.

The issue opened for bidding on Friday (3 October 2023) and it will close on Tuesday (7 November 2023). The price band of the IPO is fixed at Rs 57-60 per share. An investor can bid for a minimum of 250 equity shares and in multiples thereof.

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