Closing Bell: Market can't break the fall, Nifty and Sensex down almost a percent each

Indian equity indices ended lower for the fifth consecutive session on October 4 with Nifty around 25,050. At close, the Sensex was down 808.65 points or 0.98 percent at 81,688.45, and the Nifty was down 200.30 points or 0.79 percent at 25,049.80.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

#1 Market records biggest weekly fall since June 2022

#2 Market snaps 3-week gaining streak, nifty down nearly 5 percent

#3 BSE-listed companies erase market cap of nearly Rs 18 lakh crore this week

#4 All sectoral indices ex-nifty metal end lower, Nifty realty slips 8 percent

Domestic Equities continued their downward journey with Nifty breaching 25k in intra-day. The index finally settled near the day’s low with a loss of 200 points (-0.8%) at 25050 levels. Broader market too saw profit booking and was down 1%. Barring IT & PSU Bank, all sectors ended in red with Realty, FMCG, and Auto down 1-2%. A rise in the volatility index, selling by FIIs, and weak global cues led to profit booking in the market. Nifty shed 1310 points (-5.2%) after making a fresh high of 26277 last week.

We expect markets to consolidate next week amid cautiousness due to fear of increasing tensions in West Asia. With the start of the earning season next week, stock-specific action will continue. Also, the focus will remain on interest-sensitive stock amid the RBI policy meeting next week. Although rate cut is not on the table, commentary will hold great importance.

The bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on recovery strategy. Crude prices have moved up sharply but may be restricted due to an increase in production from OPEC+. The drag was across sectors led by realty, auto, and FMCG except IT stocks, which gained due to expected benefits from US rate cuts and defensive nature. The pessimism on the market is expected to continue in the near term amidst rising crude prices and fund flows to cheaper markets like China

Markets remained under pressure, extending their corrective phase with a loss of over a percent. After an initial decline, Nifty staged a strong recovery in the first half but sharp selling pressure in heavyweights pushed the index briefly below the 25,000 mark. All major sectors, except IT, succumbed to the pressure, with realty, auto, and FMCG among the top losers. Broader indices also weakened, shedding nearly a percent each.

The ongoing geopolitical tensions have driven crude prices higher, dampening hopes for a rate cut by the RBI in the upcoming policy meeting. Additionally, noticeable selling by foreign investors is adding to the market's strain. While there may be a pause or slight rebound after the recent slide, the overall bias will remain negative unless Nifty decisively reclaims the 25,600 level.

Key sectors such as IT, metal, and pharma are showing resilience, while others are facing selling pressure during rallies. Traders should adjust their positions accordingly and consider adopting a hedged approach.

Indian rupee ended flat at 83.97 per dollar on Friday versus Thursday's close of 83.96.

Indian equity indices ended lower for the fifth consecutive session on October 4 with Nifty around 25,050.

At close, the Sensex was down 808.65 points or 0.98 percent at 81,688.45, and the Nifty was down 200.30 points or 0.79 percent at 25,049.80. About 1522 shares advanced, 2266 shares declined, and 101 shares unchanged.

M&M, Bajaj Finance, Nestle India, BPCL, Asian Paints were among the top losers on the NSE, while gainers included Infosys, ONGC, Tata Motors, Wipro, HDFC Life.

Among sectors, except PSU Bank and IT, all other sectoral indices ended in the red with auto, FMCG, realty, power, media, telecom, oil & gas index down 1-2 percent.

BSE Midcap and Smallcap indices lost nearly a percent each.

#1 Global advances growth ahead of estimates

#2 Deposits growth was strong & moderated by 1.6 percent QoQ

#3 Expect core NIM to broadly remain stable despite some pressure in overseas

#4 With contained slippages, credit cost is likely to settle at 50-60 bps

#5 Support from better recoveries will further boost earnings

#1 Total advances up 21.3 percent YoY at Rs 2.22 lakh crore versus Rs 1.83 lakh crore, YoY

#2 Total deposits up 32.2 percent YoY at Rs 2.18 lakh crore versus Rs 1.65 lakh crore, YoY

#3 CASA deposits 37.6 percent YoY at Rs 1.09 lakh crore

#1 Standalone Q2 revenue was lower than estimates

#2 Operational metrics improve but at a slower rate

#3 Growth trend surprised us negatively

#4 Await better clarity from management during upcoming Q2 results on slower growth rate

#1 Domestic loans grew by 6.5 percent QoQ led by non-retail loans

#2 Domestic retail was healthy

#3 Overseas book was up 7.5 percent after declining 1.3 percent last quarter

#4 Domestic deposits grew 4.1 percent

#1 Pre-Q2 update shows strong deposit growth led by CASA

#2 Expect company to deliver RoA of 0.5 percent/0.8 percent and RoE of 4.5 percent/7.5 percent in FY25/FY26

#3 Bank’s return profile, though on an improving trajectory, is significantly lower than peers’

#4 Further, company trades at 1.4x one-year-forward BVPS, which believe adequately captures positives

Indian Rupee traded nearly flat amid reports of RBI selling Dollars in the NDF markets which prevented the Rupee from hitting a new record low. However, weak domestic markets, strong Dollar and surge in crude oil prices weighed on the Rupee. FII outflows and disappointing macroeconomic data from India also pressurized the Rupee. FIIs have withdrawn nearly $3 billion from the domestic markets in the past three days. India’s services PMI fell to a 10-month low at 57.7 in September vs 60.9 in August and a forecast of 58.9.

We expect Rupee to trade with a negative bias on risk aversion in the global markets and a strong Dollar amid escalating tensions between Israel and Iran. FII outflows and elevated crude oil prices may further pressurise the Rupee. Traders may take cues from non-farm payrolls report from the US. USDINR spot price is expected to trade in a range of Rs 83.75 to Rs 84.20.

#1 AUM grew 5.6 percent QoQ/28.8 percent YoY, above estimate

#2 Point of focus on Q2 call will be management’s confidence in asset quality improvement from Q3

#3 Commentary on future trajectory of credit costs will be important to watch

Dubai Court has rejected the grievances filed by RSM General Trading LLC and Honasa Consumer and ordered to attach assets of Honasa in UAE along with refusal to cancel the trading license of Honasa Consumer General Trading LLC.

#1 Q2 update highlighted 14.2 percent YoY revenue growth versus estimate of 19 percent

#2 Believe throughput continues to be impacted due to adverse product mix, store additions

#3 Store additions during the quarter were 6

#4 Remain cautious at current valuation given risks around store additions, earnings

#1 Assumed higher growth in H2FY25; if disbursements don't pick up, there could be risks to outlook

#2 Think stock is likely to be weak in near-term

#1 Q2 pre-quarter update shows broadly in-line numbers

#2 Key monitorable going into Q2 would be credit costs

#3 Any increase in FY25 credit cost guidance would be taken negatively by street & vice-versa

The company's step-down, wholly owned subsidiary, Flex Asepto (Egypt) S.A.E, has decided to set up an aseptic packaging facility in Egypt. This facility will meet the demand for aseptic packaging in Egypt, Europe, the Middle East, and East Africa. The company will invest $126 million.

The board has approved raising up to USD 500 million (Rs 4,200 crore) via unsecured, 10-year foreign currency convertible bonds (FCCBs) on a private placement basis, with a 5% annual interest rate. The FCCBs will be issued to affiliates of Värde Investment Partners, LP. The board also approved an Employee Stock Option Scheme (ESOS) for all eligible employees of the company.

The board of directors of the company  at its meeting approved the raising of funds by way of issuance of equity shares of the company having face value of Rs 10 each, for an aggregate amount not exceeding Rs 800 crores by way of private placement, qualified institutions placement, preferential issue or any other method or combination of methods in one or more tranches, subject to approval of shareholders of the company and such regulatory/statutory approvals as may be required.

The exchange announced that weekly index derivatives contracts on Sensex 50 and Bankex will be discontinued, effective November 14 and November 18, respectively. No new weekly contracts will be generated after the expiry of existing unexpired contracts, which will continue until their respective expiry dates.

The operator of DMart recorded standalone revenue of Rs 14,050.32 crore for the September 2024 quarter, growing 14.2% compared to Rs 12,307.72 crore in the corresponding period last year. The total number of stores stood at 377 as of September 2024.

Purvah Green Power, a subsidiary of CESC, has entered into a binding term sheet with Bhojraj Renewables Energy (BREPT) for securing connectivity approval and land acquisition, including relevant permits and approvals, for a 300 MW wind project and a 150 MW solar project. The subsidiary will also acquire the entire shareholding of Bhojraj Renewables Energy from its shareholders for Rs 108.56 crore.

Shareholders approved the re-appointment of Kedarmal Shankarlal Bankda as the Executive Chairman/Whole-time Director and Vijay Shankarlal Bankda as the Managing Director of the company for two years, effective May 2, 2025, and November 29, 2024, respectively.

Amit Dhuria has resigned as Chief Financial Officer (CFO) of the company, effective October 15, due to the reshuffling of resources within the Group.

The Zurich District Court has extended Steiner AG's provisional debt moratorium by four months, until February 7, 2025. The court has also authorized Steiner AG to conclude the asset transfer agreement for all real estate development projects, including the transfer of assets from Steiner AG to Steiner Development AG, a wholly owned subsidiary of Steiner AG.

Steiner AG is a material Swiss subsidiary of HCC.

#1 Company should benefit from easing short-term rates that should aid NIM in H2

#2 Spending growth stays weak in near-term

#3 Credit costs can rise in Q2 & stay elevated in near-term

#4 Card CIF growth can pick up as stress eases; corporate spending can improve slowly

#5 Profits & RoE can improve post FY25

#6 Near-term asset quality concerns will weigh on valuations

The oil retailer has signed a B2B Framework Agreement with Nepal Oil Corporation for major petroleum infrastructure development in Nepal.

#1 With ROXX ramp up, Thar franchise could inch towards nearly 8,000-10,000 units/month

#2 Leverage gains should also help offset rising discounts in core portfolio

#3 Success of Thar will consolidate M&M's 3rd spot in India PV market

Brent crude prices touched the $78 per barrel mark in early trade on October 4, clocking its biggest one-day rise in almost a year after President Joe Biden told reporters the US was discussing whether to support potential Israeli strikes against Iranian oil facilities. READ MORE

The largest pure-play electric vehicle company launched its "BOSS - Biggest Ola Season Sale" campaign for the festive season. As part of the campaign, it announced entry-level pricing for its S1 portfolio at Rs 49,999. Additionally, it introduced festive benefits of up to Rs 40,000.

Luggage products maker VIP Industries has partnered with Unicommerce to streamline its post-purchase eCommerce operations. The collaboration will enable VIP Industries to process orders faster across various online channels using a single integrated dashboard.

The company's subsidiary, Shilpa Pharma Lifesciences, has received a Certificate of Suitability (CEP) from the European Directorate for the Quality of Medicines & Healthcare (EDQM) for the API Desmopressin. Desmopressin is used to reduce frequent urination and excessive thirst and is prescribed to treat central diabetes insipidus and bedwetting.

Diffusion Engineers, which manufactures heavy machinery for core industries, wear plates and parts, and welding consumables, made a quiet stock market debut, listing for Rs 193 per share, a significant 15 percent premium over its issue price of Rs 168.

Business Functions within a burgeoning industry with substantial investments in infrastructure and industrialization.

The organization is positioned for future growth by prioritizing forward integration and diversity, shown steady financial growth and expanding profits.

The P/E valuation of the IPO is deemed reasonable. Those who took part in the initial public offering (IPO) may choose to hold onto their shares while keeping a careful eye on the company's performance and the state of the market, as well as maintaining a stop loss at the issue price.

The company has proposed to raise funds up to Rs 927.81 crore via a preferential issue of equity and convertible warrants to certain investors. The funds will be utilised for investments in subsidiary companies, capital expenditures, working capital needs, repayment of existing loans, and general corporate purposes.

#1 Thar ROXX bookings see solid response, well above expectations on first Day

#2 It is also highest first day booking for any of company’s products launched earlier

#3 Expect cannibalisation of Thar 3-Door variant (current sales are 4,000-5,000 units/month)

#4 Have built in sales of 10,000 units/month for thar family in FY26

#5 There could be significant upside For Thar bookings based on current response