Morning Update: Among sectors, realty and PSU Bank up 0.5-1 percent each. HDFC Bank, Inox Wind, Reliance Industries, DLF and KPIT Technologies are among the most active shares on the NSE.
Sensex- Falls –160 points at 63952
Nifty 50 Falls -43 points at 19097
Indian Market
FII AND DII
| FII Sold | 1,761.86 Cr |
| DII purchased | 1,328.47 Cr |
Indian Market News
- Asian markets are trading uneven; the Nikkei and Hang Seng are down, while the Straits Times is up.
- Wall Street adds 1%, the yen climbs against the dollar, and there is talk of a change in BOJ policy.
- Gold is falling as central bank meetings take centre stage.
- In October, China’s industry activity fell back into decline.
- The USFDA has issued an EIR for Ipca Laboratories’ Pithampur plant.
- On day 2, the Maitreya Medicare IPO was purchased 75.39 times, while the retail component was purchased 94.55 times.
- On Day 1, the Cello World edition received 38% of the subscriptions.
- Mamaearth acquires Rs 765 crore from anchor investors ahead of its first public offering (IPO).
- DLF’s net profit in the second quarter increased by 29% to Rs 629 crore.
- The consolidated net profit of Transport Corporation of India increased by 20% to Rs 88 crore in the second quarter.
- Tata Motors receives a Rs 766 crore arbitral award with interest in the Singur factory lawsuit.
- IOCL’s Q2 net profit may plummet 30% year on year to Rs 9,640 crore as crude prices rise.
- TVS Motor’s net profit increased 32% to Rs 537 crore in the second quarter, while revenue increased 13%.
Global Market Check
Gift Nifty
With a gain of 5.5 points, the GIFT Nifty signals a slightly good start for the whole index. After peaking at 19,245 points, GIFT Nifty futures were trading at 19,230 points.
US Markets
Monday night’s US stock futures were unchanged following a relief rally that saw the major averages rise. Futures on the S&P 500 decreased by 0.04 percent, while those on the Nasdaq 100 decreased by 0.06 percent. The Dow Jones Industrial Average-linked futures saw a mere 10 point, or 0.03 percent, increase.
The S&P 500 ended Monday’s trading session 1.2 percent higher, breaking out of correction territory and having its strongest day since late August. In its biggest day since early June, the Dow increased by nearly 1.6 percent, while the Nasdaq Composite gained about 1.2 percent.
European Markets
Despite continued Middle East turbulence, European stock markets closed higher on Monday. Investors were keeping an eye on German economic data and US market movement.
The majority of industries saw advances as healthcare stocks led gains in the pan-European Stoxx 600, which finished 0.4 percent higher. Based on LSEG statistics, the index is expected to decline by 4.6 percent every month due to weak earnings and worries about longer-term, rising interest rates.
HSBC revealed overnight that its third-quarter earnings after tax increased by a staggering 235 percent to $6.26 billion, although this still fell short of projections. The biggest bank in Europe in terms of assets also declared it will repurchase up to $3 billion worth of shares. Shares listed in London began trading 0.8 percent higher.
Asian Markets
Ahead of the Bank of Japan’s significant monetary policy announcement and new economic data points across the region, the Asia-Pacific markets were mixed. Later in the day, the Bank of Japan will wrap up its two-day policy meeting, and investors will be looking for any indication that the central bank will be boosting its inflation projections.
At opening, the Topix gained 0.22 percent, while Japan’s Nikkei 225 fell 0.34 percent. The Kospi in South Korea increased 0.37 percent. The Kosdaq fell by a little 0.06 percent. The Hong Kong Hang Seng index futures were trading at 17,393, indicating a lower opening than the closing value of 17,406.36 for the HSI. The S&P/ASX 200 was up 0.47 percent in Australia.
Oil Prices
Even after Israel entered the Gaza Strip with ground forces, escalating tensions in the Middle East, oil prices fell as investors anxiously watched the U.S. Federal Reserve’s monetary policy meeting later this week. The global benchmark Brent crude oil price was down 2.8% at $87.89 per barrel. At $82.57 a barrel, US West Texas Intermediate futures saw a 3.5% decrease last time.
“I believe that the market had already factored in the incursion on Friday, and tonight is more about’selling the fact,'” Rapidan Energy Group President Bob McNally emailed CNBC.
After the U.S. economy grew at a faster-than-anticipated rate of 4.9 percent annual pace in the third quarter, the Fed is expected to leave rates unchanged at the conclusion of its two-day meeting on Wednesday.
Dollar Index
The Dollar index traded 0.11 percent higher in futures at 106.32, whereas the value of one dollar hovered near Rs 83.26.
Gold Prices
Due to demand for safe haven assets amidst the Middle East crisis, gold prices remained close to the crucial psychological $2,000 barrier on Monday as investors anticipated this week’s US Federal Reserve policy meeting.
The conflict in the Middle East is maintaining a floor under the gold and silver markets. Jim Wyckoff, senior analyst at Kitco Metals, stated, “I remain bullish on gold; the conflict will get worse before it gets better and gold can hit an all-time high in the near term.”
The spot price of gold was $1,998.47 per ounce, down 0.4 percent. US gold futures ended the day at $2,005.60, up 0.4 percent. As speculators poured money into safe-haven bullion, spot gold prices surged to $2,009.29 an ounce on Friday, breaking beyond the $2,000 mark for the first time since mid-May.
News updates
Tata Motors wins arbitral award of Rs 766 crore plus interest in Singur plant case
Tata Motors has won an arbitral award of Rs 766 crore plus interest to compensate for its investment in the scrapped Singur plant, which was being built to manufacture the Tata Nano there. The company announced that the pending arbitration proceedings between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC) have been finally disposed of by a unanimous Award dated October 30, 2023 in favor of TML. The tribunal said Tata Motors can recover a sum of Rs 765.78 crore with interest thereon at 11 percent per annum from September 1, 2016 till actual recovery thereof from WBIDC. Tata Motors has been allowed to recover a sum of Rs 1 crore towards the cost of the proceedings.
TVS Motor Q2 results: Net profit rises 32% to Rs 537 crore, revenue up 13%
TVS Motor Company reported a standalone net profit of Rs 537 crore, up 32%, in the quarter ended September 30, 2024 on account of higher sales. The automaker had reported a net profit of Rs 407 crore in the year-ago period. Revenue from operations increased 13 percent to Rs 8,144.61 crore in the said quarter as against Rs 7,219.18 crore in the same quarter last fiscal. The Chennai-based two-wheeler manufacturer’s operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 22% at Rs 900 crore for the second quarter of 2023-24 as against Rs 737 crore in the second quarter of 2022-23.
Stock market prospects bright as young investors enter with active income: BSE CEO
BSE CEO Sundararaman Ramamurthy has revealed that the majority of new investors entering the stock market are young and with active income, indicating the Indian market’s long-term growth prospects. 83% of new investors registered in the last three years are below 40 years old and in their income-earning age, indicating sustained growth in the market. Nearly half of these new investors are aged 30-40 years. Out of the total number of investors trading in the market, around 60% have been registered in the last three years, with 14% aged 18-20 and 22% aged 20-30.
Chris Wood issues stark warning: 25% market correction looms If BJP loses in 2024
Chris Wood, Global Head of Equity Strategy at Jefferies, warned that the Indian stock markets could experience a 25% market correction if the Bharatiya Janata Party (BJP) loses victory in the 2024 general elections. Wood compared this to the 2004 election results, predicting a 25% or more correction. However, he predicted that the markets would bounce back due to the momentum, highlighting the need for a robust political environment in the country.
Stock in News
TVS Motor Company: For the quarter that ended in September of FY24, the two-and three-wheeler company reported a standalone profit of Rs 536.55 crore, up 31.7 percent from the same time the previous year. During the quarter, sales volume climbed by 5% YoY to 10.74 million units, and revenue from operations increased by 12.8% YoY to Rs 8,145 crore.
Tata Motors: In order to make up for its investment in the now-closed Singur plant, the Tata Group firm has received an arbitral verdict of Rs 766 crore plus interest.
Bajaj Hindusthan Sugar: Uttar Pradesh Power Corporation has paid Bajaj Hindusthan Sugar, a sugar company situated in Uttar Pradesh, Rs 1,361 crore into each of its 14 sugar plants’ designated escrow accounts for cane price payments. In order to settle cane payment arrears for the sugar season 2022–2023—the aforementioned sum is given to the cane growers.
DLF: Despite a weak top line, which was somewhat offset by EBITDA margin, the real estate giant reported a 30.6 percent year-over-year increase in consolidated profit at Rs 622.8 crore for the quarter that ended in September of FY24. At Rs 1,347.7 crore for the quarter, consolidated revenue from operations climbed by 3.5 percent on an annual basis.
Marico: Despite a modest top line, the FMCG giant reported a 17.3% year-over-year growth in consolidated profit at Rs 360 crore for the July–September period of FY24. This increase was fueled by strong EBITDA performance and decreased input costs. Compared to the same period last year, revenue from operations decreased by 0.8 percent to Rs 2,476 crore.
Procter & Gamble Hygiene & Health Care: The FMCG company recorded a 36% year-over-year increase in net profit at Rs 211 crore for the September FY24 quarter that concluded. This increase was driven by productivity, product pricing mix, and acceleration of volume growth. Better retail performance and an integrated growth strategy drove a 9% YoY increase in revenue from operations to Rs 1,138 crore.
Colgate-Palmolive: The Income Tax Authority has assessed the oral care corporation an income tax debt of Rs 170 crore. The Assessing Authority has sent it a transfer price order for the Assessment Year 2021–2022, prohibiting specific foreign transactions.
Bank of India: In accordance with the Board-approved pricing strategy, the public sector lender updated its marginal cost of fund-based lending rate (MCLR) effective November 1. While the overnight MCLR stayed at 7.95 percent, it climbed by 5 basis points over the course of a year to three years.
APL Apollo Tubes: Propelled by robust operating profit, the structural steel tube manufacturer reported a 35% year-over-year increase in profit for the July–September FY24 quarter, totaling Rs 202.9 crore. Operating revenue increased to Rs 4,630 crore, or 16.65%, more than it did during the same time in the previous fiscal year.
Spandana Sphoorty Financial: For the quarter that ended in September of FY24, the microfinance lender reported a staggering 127 percent year-over-year increase in net profit, coming in at Rs 125.2 crore. With AUM increasing 69 percent to Rs 9,784 crore and disbursement climbing 81 percent to Rs 2,513 crore for the quarter, revenue from operations increased dramatically by 105 percent YoY to Rs 610.3 crore.
Castrol India: For the quarter ending in September 2023 (Q3CY23), the manufacturer of industrial and automotive lubricants recorded a 3.9 percent year-over-year gain in profit at Rs 194.4 crore, while the EBITDA margin decreased. In comparison to the same period last year, revenue from operations increased by 5.5 percent to Rs 1,183 crore.
Blue Star: The manufacturer of air conditioners reported a strong profit of Rs 70.8 crore for the quarter that ended in September of FY24, up 66 percent from the same time last year and with strong operating EBITDA. To Rs 1,890.4 crore, revenue increased by 19.5% over the same time period. Enhanced scale and greater gross margins drove a large YoY increase in operating profit, which reached Rs 122.7 crore, up 43.3 percent.
PSP Projects: In Ahmedabad, the business has been given work orders of Rs 200.25 crore. The overall order intake for the financial year 2023–24 up to this point, with the receipt of these orders, is Rs 958.63 crore. It has also been revealed as the lowest bidder for the Gujarat Biotechnology Research Centre (GBRC) project, which involves erecting the main building.
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