Nifty hovers below 19,050; metal shares lose sheen

Domestic equity benchmarks continued to trade with minor losses in early afternoon trade. The Nifty hovered below the 19,050 mark. Metal shares declined for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 111.16 points or 0.17% to 63,763.77. The Nifty 50 index shed 30.80 points or 0.16% to 19,048.80.

In the broader market, the S&P BSE Mid-Cap index declined 0.02% while the S&P BSE Small-Cap index gained 0.36%.

The market breadth is positive. On the BSE, 1,905 shares rose and 1,572 shares fell. A total of 151 shares were unchanged.

Economy:

Posting 55.5 in October, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers� IndexTM (PMI) signalled an improvement in the health of the sector for the twenty-eighth month in a row. The latest reading was above its long-run average of 53.9, but slipped from 57.5 in September to signal the slowest rate of expansion since February. Output increased further at the start of the third fiscal quarter, stretching the current sequence of expansion to over two years.

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.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.76% to 11.92. The Nifty 30 November 2023 futures were trading at 19,126.40, at a premium of 77.6 points as compared with the spot at 19,105.60.

The Nifty option chain for the 30 November 2023 expiry showed maximum Call OI of 29.2 lakh contracts at the 20,000 strike price. Maximum Put OI of 53.8 lakh contracts were seen at 19,000 strike price.

Buzzing Index:

The Nifty Metal index declined 0.68% to 6,408.40. The index shed 0.92% in two trading sessions.

Jindal Steel & Power (down 7.11%), Adani Enterprises (down 1.51%), Hindustan Zinc (down 0.96%), JSW Steel (down 0.89%), Tata Steel (down 0.51%), Hindustan Copper (down 0.28%), Steel Authority of India (down 0.18%) declined.

On the other hand, Vedanta (up 4.04%), Welspun Corp (up 2.94%) and Jindal Stainless (up 0.64%) edged higher.

Earnings Impact:

Mangalore Refinery & Petrochemicals (MRPL) rose 2.51% after the company posted a standalone net profit of Rs 1,059 crore in Q2 FY24 as compared with a net loss of Rs 1,789 crore in Q2 FY23. Net revenue from operations declined 22% YoY to Rs 19,230 crore during the period under review.

Mankind Pharma declined 0.85%. The company`s consolidated net profit increased 19.4% to Rs 501.03 crore in Q2 FY23 as against Rs 419.71 crore posted in Q2 FY23. Revenue from operations stood at Rs 2,708.10 crore in the quarter ended 30 September 2023, up 11.6% YoY from Rs 2,425.84 crore in Q2 FY23.

Mahindra & Mahindra (M&M) rose 0.16%. 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.

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