SENSEX RISES 72 PTS, NIFTY ENDS AT 19425.35; BAJAJ TWINS CLIMB

The stock market witnessed a turnaround on Friday, with the main indices making slight gains after a day of trading in the red. The Nifty settled above the 19,400 level after hitting the day�s low of 19,329.45 in morning trade. The recovery was primarily fueled by strength in banking, financials, and oil & gas stocks. The broader indices outperformed the benchmarks. The market exuded resilience, fueled by expectations of manageable October retail inflation in India and prospects for an upward revision in Q1FY24 GDP growth. Additionally, robust mutual fund flows and the celebratory spirit of Diwali further buoyed the positive sentiment.

The barometer index, the S&P BSE Sensex advanced 72.48 points or 0.11% to 64,904.68. The Nifty 50 index added 30.05 points or 0.15% to 19,425.35.

Bajaj Finance (up 0.83%), Bajaj Finserv (up 0.81%) and HDFC Bank (up 0.22%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.33% while the S&P BSE Small-Cap index rose 0.38%.

The market breadth was negative. On the BSE, 1,841 shares rose and 1,847 shares fell. A total of 132 shares were unchanged.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose 0.43% to 7.300 from its previous close of 7.269.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3200, compared with its close of 83.29 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement declined 0.42% to Rs 60,030.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.12% to 105.78.

The United States 10-year bond yield advanced 0.26% to 4.644.

In the commodities market, Brent crude for January 2024 settlement gained 71 cents or 0.89% to $80.72 a barrel.

Global Markets:

Markets in Europe and Asian slipped on Friday, reversing small gains from the previous session due to a pessimistic tone set by U.S. markets.

The decline in U.S. stocks on Thursday put an end to the S&P 500`s eight-day winning streak, which had previously resulted in a gain of over 6%. This decline was influenced by hawkish comments made by Federal Reserve Chairman Jerome Powell during an International Monetary Fund conference. Powell emphasized the need for potentially more measures to combat inflation and stated that the Federal Open Market Committee is committed to achieving a monetary policy stance that effectively brings inflation down to 2% over time. He also expressed uncertainty about whether such a stance has been achieved.

New Listing:

Shares of ESAF Small Finance Bank closed at Rs 69.05 on the BSE, representing a premium of 15.08% as compared with the issue price of Rs 60.

The scrip was listed at Rs 71.90, exhibiting a premium of 19.83% to the issue price. The stock has hit a high of 74.70 and a low of 68.50. On the BSE, over 49.42 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Hindalco Industries shed 0.61%. The Aditya Birla Group company�s consolidated net profit rose marginally to Rs 2196 crore in Q2 FY24 as against Rs 2,205 crore recorded in Q2 FY23. Revenue from operations declined 3.57% year on year to Rs 54169 crore during the quarter.

Mahindra & Mahindra (M&M) declined 1.86%. The auto major`s standalone net profit surged 66.92% to Rs 3,451.88 crore in Q2 FY24 as against Rs 2,068 crore recorded in Q2 FY23. Revenue from operations increased 16.59% year on year (YoY) to Rs 25,772.68 crore in the quarter ended 30 September 2023.

During the quarter, M&M sold 2,12,078 vehicles, recording a growth of 18% as against 1,79,673 vehicles sold in the same quarter a year ago. Total tractors sold in Q2 FY24 stood at 89,101 units, down 4% from 92,590 units sold in Q2 FY23.

CarTrade Tech surged 19.01% after the company�s consolidated net profit zoomed 132.44% to Rs 12.97 crore as against Rs 5.58 crore recorded in Q2 FY23. Net revenue stood at Rs 147.94 crore in Q2 FY24, registering a growth of 44.35% from Rs 102.49 crore posted in Q2 FY23.

Action Construction Equipment (ACE) jumped 5.66% after the company�s net profit jumped to Rs 73.9 crore in Q2 FY24 from Rs 33.9 crore in Q2 FY23. Total income rose by 38.7% year-over-year to Rs 690.2 crore in the second quarter.

Muthoot Finance slipped 3%. The company reported consolidated net profit of Rs 1,095.28 crore in Q2 FY24, higher from Rs 901.62 crore posted in Q2 FY23. Total income rose to Rs 3631.94 crore in Q2 FY24 from Rs 2841.85 crore in Q2 FY23.

Piramal Enterprises tumbled 4.10%. The company reported consolidated net profit of Rs 48.19 crore in Q2 FY24 as against net loss of Rs 1,536.39 crore reported in Q2 FY23. Total income fell 3% to Rs 914 crore in Q2 FY24 as compared with Rs 943 crore posted in corresponding quarter last year.

Rail Vikas Nigam (RVNL) declined 2.65%. The company reported 3.42% increase in consolidated net profit to Rs 394.26 crore in Q2 FY24 as compared with Rs 381.22 crore in Q2 FY23. Revenue from operations increased marginally to Rs 4,914.32 crore in Q2 FY24 from Rs 4,908.90 crore reported in Q2 FY23.

Ashok Leyland rose 1.94%. The board of directors of Ashok Leyland has approved an investment of Rs 1200 crore in Switch Mobility as equity through its holding company Optare PLC UK. The funds infused will be used for capital expenditure, R&D and meeting operational requirements both in UK and India.

Glaxosmithkline Pharmaceuticals (GSK Pharma) added 1.73% after the company�s net profit rose 11.36% to Rs 215.54 crore in Q2 FY24 as against Rs 193.56 crore recorded in Q2 FY23. Revenue from operations grew by 5.27% year on year to Rs 953.38 crore in the quarter ended 30 September 2023.

Zee Entertainment Enterprises (ZEEL) slumped 5.29% after the company reported 5.29% decline in consolidated net profit (from continuing operations) to Rs 129.88 crore in Q2 FY24 as against Rs 137.13 crore posted in Q2 FY23. Revenue from operations in Q2 FY24 was at Rs 2437.79 crore, registering a growth of 20.45% from Rs 2,023.89 crore recorded in the same period a year ago.

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