Sensex drops 325 pts, Nifty ends below 19,450; HDFC Bank, RIL drag

Domestic stocks faced selling pressure on Monday, dragged by banking, financial, and IT stocks. This was influenced by a combination of factors including mixed global market performance and Moody`s downgrade of the US credit rating outlook, which resulted in a surge in yields. Despite these challenges, the broader market showed resilience as there was increased buying in the PSU banks and metal shares.

The barometer index, the S&P BSE Sensex slipped 325.58 points or 0.50% to 64,933.87. The Nifty 50 index lost 82 points or 0.42% to 19,443.55.

Bajaj Finance (down 1.32%), HDFC Bank (down 0.73%) and Reliance Industries (down 0.71%) were major drags.

In the broader market, the S&P BSE Mid-Cap index gained 0.10% while the S&P BSE Small-Cap index shed 0.01%.

The market breadth was negative. On the BSE, 1,732 shares rose and 2,098 shares fell. A total of 145 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.41% to 11.19.

The exchanges will remain closed on Tuesday, 14 November 2023, on the occasion of Diwali Balipratipada.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper shed 0.19% to 7.286 from its previous close of 7.30.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3275, compared with its close of 83.2800 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement declined 0.16% to Rs 59,656.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.09% to 105.77.

The United States 10-year bond yield gained 0.24% to 4.638.

In the commodities market, Brent crude for January 2024 settlement added 14 cents or 0.17% to $81.57 a barrel.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Monday, amid anticipation of key economic data and the upcoming high-stakes meeting between U.S. President Joe Biden and China�s President Xi Jinping.

In Japan, there was a notable slowdown in wholesale inflation, indicating a gradual easing of cost pressures, as reported by the Bank of Japan.

Additionally, Moody`s Investors Service downgraded the U.S. government`s ratings outlook from stable to negative, citing increasing risks to the nation�s fiscal strength.

Stocks in Spotlight:

Glenmark Pharmaceuticals dropped 4.97%. The company has posted a net loss of Rs 61.6 crore in Q2 FY24 as compared with a net profit of Rs 278.6 crore in Q2 FY23. Revenue rose by 6.3% YoY to Rs 3,207.4 crore during the period under review.

Fortis Healthcare rallied 2.93%. The company reported 15% decline in consolidated net profit to Rs 173.72 crore in Q2 FY24 as compared with Rs 204.37 crore in Q2 FY23. The company�s revenue from operations jumped 10.13% year on year (YoY) to Rs 1,769.95 crore in Q2 FY24.

Sun TV Network gained 3.21% after the media company�s standalone net profit rose 13.86% to Rs 456.24 crore on 27.82% increase in revenue from operations to Rs 1,017.98 crore in Q2 FY24 over Q2 FY23.

Elegant Marbles and Grani Industries hit an upper limit of 10% to Rs 329.65 after the company`s net profit rose 69.6% to Rs 1.90 crore on 4.5% increase in net sales to Rs 8.59 crore in Q2 September 2023 over Q2 September 2022.

Meanwhile, the company`s board has approved a buyback of up to 6,97,000 equity shares, with a total value not exceeding Rs 26,83,45,000. The maximum price for the buyback is set at Rs 385 per share.

Biocon slipped 3.17%. The global biopharmaceuticals company`s consolidated net profit surged 167.8% to Rs 125.6 crore in Q2 FY24 as compared with Rs 46.9 crore in Q2 FY23. Revenue from operations jumped 49.26% to Rs 3,462.3 crore in Q2 FY24 as compared with Rs 2,319.7 crore posted in corresponding quarter last year.

Further, Biocon said that its subsidiary Biocon Biologics has received marketing authorization from MHRA, Medicines and Healthcare products Regulatory Agency in the UK, for YESAFILI, a biosimilar of Aflibercept.

Hindustan Copper surged 8.04% after the company�s consolidated net profit zoomed to Rs 60.70 crore in Q2 FY24 as against Rs 25.87 crore posted in Q2 FY23. Revenue from operations stood at Rs 381.40 crore in the quarter ended 30 September 2023, registering a growth of 79.78% YoY.

TVS Electronics fell 1.03% after the company reported 60% drop in net profit to Rs 1.12 crore on a 1% decline in revenue from operations to Rs 92.19 crore in Q2 FY24 over Q2 FY23.

Galaxy Surfactants shed 1% after the company�s consolidated net profit declined 7.69% to Rs 77.42 crore on 20.49% decrease in revenue from operations to Rs 983.12 crore in Q2 FY24 over Q2 FY23.

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