Closing Bell: Sensex flat, Nifty below 24,150; Asian Paints, Britannia top losers

Indian equity indices ended on flat note in the volatile session on November 11. At close, the Sensex was up 9.83 points or 0.01 percent at 79,496.15, and the Nifty was down 6.90 points or 0.03 percent at 24,141.30.

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The Nifty remained volatile, failing to give any directional breakout. The index oscillated within the range of 24,000-24,350. The momentum indicator RSI shows a bullish crossover. Additionally, on the daily chart, the index has formed an inverted hammer pattern, indicating a possible bullish reversal. On the higher side, the index might move towards 24,500-24,550, while support is placed at 24,000.

After showing upmove in the last couple of sessions, Nifty witnessed high volatility on Monday and closed the day lower by 6 points. Nifty opened on a negative note and slipped into further weakness soon after the opening. Sharp intraday upside recovery was seen from the low of 24K mark in the early-mid part, but the market was not able to sustain the upside bounce and slipped into weakness from the highs in the afternoon to later part of the session.

A small bullish candle was formed on the daily chart with long upper shadow. Technically, this pattern is indicating an inability of bulls to sustain the upside bounce. Though, market declined in the last couple of sessions, the sharp downside momentum was absent. This market action could bring some hopes for bulls to make a comeback from the lows.

The underlying trend of Nifty remains choppy with weak bias. The market is moving in a broader high low range of 24600-23800 levels. Having declined from the upper range recently, Nifty is expected to witness upside bounce from near the lower range of 23800 levels in the short term. Immediate resistance to be watched around 24300.

The actions of FIIs are dominating the current market momentum, which is backed by a weak set of earnings and expectations from Trump policy. The risk of further downgrades in Nifty earnings casts clouds over investor sentiment, while the IT sector continued to outperform due to the strong US dollar and in anticipation of a revamp in US IT spending. India is also looking forward to the CPI data with a muted view as food prices are likely to be higher on MoM basis, essentially forging RBI to hold the interest rates in the short-term.

Key benchmark indices gyrated between positive and negative zones in a highly volatile intra-day session and finally ended on a lacklustre note. However, gains in select banking and IT stocks shielded the markets from yet another fall as the falling rupee and FII fund outflows continue to keep investors on the edge.

The markets experienced volatility and closed nearly flat amid mixed signals. The benchmark index opened on a weak note, driven by disappointing earnings from Asian Paints. However, strength in IT and banking heavyweights quickly pared the early losses, pushing the index higher in the first half. Despite this, the absence of follow-up buying and continued pressure on select large-cap stocks erased the gains as the session progressed, leading to range-bound movement until the close. Amid the choppy session, banking and IT sectors managed to end in positive territory, while metals, FMCG, and pharma closed lower. Broader indices underperformed, slipping between 0.80% and 1.10%.

The alignment of the banking and IT sectors has sparked hopes for a potential recovery, but sustained momentum in these areas is crucial for a meaningful rebound; otherwise, the market may remain range-bound. As we approach the final phase of the earnings season, heightened volatility is likely to persist. Given this outlook, traders are advised to adopt a hedged approach with a focus on selective stock picking.

Indian equities commenced the week on a tepid note and weakness in the Mid/Smallcap segments put further pressure on the Index to trade lower; however, IT and Banking counters came to the rescue and helped the Index to recover but the higher levels did not last for long and erased all its gains to end the session at 24,141.30 with a loss of 6.90 points. Barring IT and Banking Indices, all the other sectors ended the trade in red where Media and Metal were the major laggards.

The underperformance by the broader markets extended as Mid and Smallcaps corrected by 0.88% & 1.20% respectively.

After testing both resistance (24,250) and support (24,000) levels, the Index has formed a Spinning Top candlestick pattern which indicates indecisiveness between the bulls and bears. A convincing move on either side is necessary for a clear trend.

Indian rupee ended flat at 84.38 per dollar on Monday versus Friday's close of 84.37.

Indian equity indices ended on flat note in the volatile session on November 11.

At close, the Sensex was up 9.83 points or 0.01 percent at 79,496.15, and the Nifty was down 6.90 points or 0.03 percent at 24,141.30. About 1446 shares advanced, 2478 shares declined, and 116 shares unchanged.

Power Grid Corp, Trent, Infosys, HCL Tech, Tech Mahindra are among major gainers on the Nifty, while losers are Asian Paints, Britannia, Apollo Hospitals, Cipla and ONGC.

BSE Midcap index was down 0.8 percent and smallcap index shed 1 percent.

Among sectors, bank index was up 0.6 percent each and IT index was up 1 percent, while auto, FMCG, healthcare, metal, oil & gas, media down 0.5-1 percent

Indian mutual fund industry is at an all time high AUM of Rs 6,725,614.61. The month shows investors have preferred hybrid funds due to the ongoing volatility in the equity markets. We are positive on the Indian economy and India's equity market will deliver a reasonably good return while comparing with other emerging markets. Trump presidency in US is broadly positive for us.

We believe that the market is volatile due to short terms factors like weak domestic earning cycle, delayed government spending for capital intensive sectors etc. However, investors should continue investing in equity mutual funds with 3-5 years’ time horizon.

#1 Company confident in its JLR guidance of EBIT margin for FY25 & FY26

#2 MGMT cautious on CVs but new launches in PV to drive growth

#1 Loan growth slow at 10 percent YoY

#2 Board decided against a loan for Shapoorji Pallonji Group

#3 Started sanctions in conventional generation segment, which is a key positive

#4 Adjusted PB of 1.1x (FY26) is inexpensive for its 18 percent RoE profile

#1 Volumes can improve in H2FY25

#2 Overall sales & EBITDA will still look anaemic/flattish

#1 RoA remains above 1 percent, EPS growth also strong at 28 percent YoY

#2 Biggest relief was lack of any major asset quality deterioration

#3 Core profitability metrics weaker with NIM declining by 8 bps QoQ

#1 Revenue down 1.3% YoY to Rs 229 crore

#2 Total costs Rs 197 crore vs Rs197 crore YoY

#3 Other income Rs 8.86 crore, down 22% YoY

Foreign brokerages have issued Buy ratings for Ola Electric. BoFA Securities set a target price of Rs120, HSBC Securities at Rs110, and Goldman Sachs at Rs137 for a 12-month outlook. Meanwhile, Ola Electric tells CNBC-TV18 that automotive biz margin will turn positive in FY26.

#1 India debt funds see Rs1.57 trln of inflows in Oct: Amfi

#2 Large Cap Fund Inflow At Rs3,452.3 Cr Vs Rs1,769 Cr Inflow (MoM)

#3 Small Cap Fund Inflow At Rs3,772 Cr Vs Rs3,071 Inflow Cr (MoM)

#1 Key positive was stable asset quality

#2 Deposit growth needs to be 11-12 percent to aid targeted loan growth

#1 Cost of production largely flat for aluminium but lower for zinc QoQ

#2 Company expects H2 to be much better than H1

#3 Rise in Alumina price could weigh on its earnings

#4 Leverage issues at the parent look largely behind us

#1 In-line NII, write-backs continue to aid profit

#2 Q2 provides more visibility of growth pick-up in H2

#1 JLR & CV disappoint while PV comes in line

#2 Quality of reported EBIT disappointing as well

#3 FCF guidance now stands at £1.3 bn from earlier £1.8 bn

#1 For recruitment vertical, healthy bounceback continues

#2 Stable billing growth continued in real estate business

#3 Matrimony and education segments continue to grow

#4 Cut FY26-27 EPS estimates by 5 percent

QIB – 1.77 times

NII - 0.53 times

Retail – 2.20 times

Overall – 1.51 times

#1 EBITDA 4 percent above estimates due to better-than-expected gross margin

#2 Expect a gradual recovery in truck & LCV segments from FY26

#3 See 6 percent volume CAGR over FY25-27

#4 Expect profitability trends to continue to improve

#1 Q2 below, but JLR guidance maintained

#2 Strong rebound in JLR in H2FY25, India CV recovery likely by Q4

#3 JLR’s performance across markets has been better than peers

QIB – 1.65 times

NII - 0.51 times

Retail – 2.13 times

Overall – 1.43 times

#1 Subdued demand and extended rains & floods hit earnings

#2 Volume growth at -0.5 percent, weaker than peers

#3 Product mix, rising rebates, employee costs & high selling expenses key monitorables

#1 Steady delivery of numbers with lesser hiccups

#2 SBI’s earnings were slightly better than expected

#3 Strong other income on opportunistic treasury & Fx

#4 Below expected employee cost-mainly MTM benefits on pension provisions

#5 Maintains ability to show growth with steady margins

#6 NPA credit cost remained benign & steady at 40bps of loans

#7 Other elements of provisions came in higher vs write back seen in last few quarters

#8 Fresh slippages also were lower helping improve & keep asset quality pristine

#9 SBI continues to deliver a steady RoAs of 1.1 percent-1.2 percent,

#10 Trade-off between growth & NIMs remains a challenge

#11 This has been on outset of lowest C-D ratio in industry

Oil and Natural Gas Corporation, Britannia Industries, Hindalco Industries, Shree Cement, Bank of India, Azad Engineering, Bajaj Consumer Care, Balrampur Chini Mills, BEML, Campus Activewear, Devyani International, Godfrey Phillips, Graphite India, Hindustan Copper, Jubilant FoodWorks, NMDC, Parag Milk Foods, Apeejay Surrendra Park Hotels, Ramco Cements, Triveni Turbine, TVS Supply Chain Solutions, UPL, and Zydus Wellness will announce their September quarter earnings on November 11.

#1 JLR expects a much better H2 & maintained its FY25 margin guidance

#2 India CV & PV demand has slowed down too

#3 Cut FY25-27 EPS estimates by 2-9 percent

#1 Operational beat in Q2 led by better mix and cost efficiency

#2 Guides for 22-23 percent EBITDA margin in FY25

#3 Build-up of complex injectables in US is key

#1 Reported a solid Q2, revenue in-line while EBITDA 3 percent ahead of estimates

#2 Recruitment billings growth should accelerate further in Q3

#3 Hiring activity on naukri continues to gradually improve

#1 Reported strong VNB growth in Q2

#2 Momentum in non-par continued to buoy margin & volumes

#3 Implementation of new surrender value guidelines poses risk to momentum

#4 Strong rally in the capital market continued to boost EV in H1FY25

#1 Management attributed sales decline to a weaker consumer sentiment

#2 Sales growth lagged listed competition which reported flattish growth

Shares of India's largest shipping company - Shipping Corporation of India (SCI) surged over 13%, as investors welcomed the strong growth in bottomline for the September quarter. There is strong buying interest in the shares of the demerged entity - SCI Land Assets - as well, which is higher by over 6% on November 11.

Shipping Corporation of India's consolidated net profit rose multi-fold to Rs 291.44 crore for the September quarter, as compared to a net profit of Rs 65.73 crore in the corresponding quarter a year ago. SCI's income rose to Rs 1,491.23 crore in September quarter, from Rs 1,161.89 crore a year ago. The shipping company also approved a dividend of Rs 0.50 per share.

With this rebound, SCI shares have recouped much of the fall seen in the last one month. On YTD basis, shares of SCI are higher by 47%.

Shares of Data Patterns (India) fell over 7 percent after the company reported a decline in its net profit and revenue for the quarter ended September. For Q2FY25, the company's net profit dropped over 10 percent year-on-year to Rs 30.3 crore, with revenue from operations slipping 16 percent to Rs 91 crore. Operational EBITDA also fell to Rs 34.3 crore from Rs 40.8 crore. The EBIDTA margin remained largely flat at 37.7 percent.

The PAT margin, however, improved to 33.3 percent for the quarter ended September as compared to 31.2 percent a year ago.

#1 SBI stays amongst top picks, steady asset quality; uptick in deposit growth is key

#2 SBI's profit beat estimate with higher MTM gains & lower staff cost

#3 Key positive was stable asset quality, even in unsecured loans kept credit cost low

#4 Tweak estimates by -2 percent to +3 percent to factor tad weaker NIMs

#5 Upsides can come from lower staff costs

#6 Prefer SBI for stronger franchise & higher profitability versus peers

#7 CET-I CAR is at 10 percent (without profit) vs norms of 8.6 percent

#1 Profit declines 4.6 percent to Rs 32.8 crore Vs Rs 34.4 crore, YoY

#2 Revenue slips 7.4 percent to Rs 146.1 crore Vs Rs 157.8 crore, YoY

#3 EBITDA drops 17.3 percent to Rs 42.4 crore Vs Rs 51.3 crore, YoY

#4 Margin dips 350 bps to 29 percent Vs 32.5 percent, YoY

#1 Profit plunges 76.2 percent to Rs 15.7 crore Vs Rs 66 crore, YoY

#2 Revenue declines 17.2 percent to Rs 240.5 crore Vs Rs 290.5 crore, YoY

#3 EBITDA slips 21.7 percent to Rs 74.7 crore Vs Rs 95.5 crore, YoY

#4 Margin drops 190 bps to 31 percent Vs 32.9 percent, YoY

Earnings Watch | Welspun Corp shares fall post Q2 consolidated profit falls 27%

#2 Revenue falls 18.7 percent to Rs 3,301.8 crore Vs Rs 4,059.5 crore, YoY

#3 EBITDA rises 0.02 percent to Rs 399.6 crore Vs Rs 399.5 crore, YoY

#4 Margin expands 230 bps to 12.1 percent Vs 9.8 percent, YoY

Oil and Natural Gas Corporation, Britannia Industries, Hindalco Industries, Shree Cement, Bank of India, Azad Engineering, Bajaj Consumer Care, Balrampur Chini Mills, BEML, Campus Activewear, Devyani International, Godfrey Phillips, Graphite India, Hindustan Copper, Jubilant FoodWorks, NMDC, Parag Milk Foods, Apeejay Surrendra Park Hotels, Ramco Cements, Triveni Turbine, TVS Supply Chain Solutions, UPL, and Zydus Wellness will announce their September quarter earnings on November 11.

#1 Profit falls 8.3 percent to Rs 30.4 crore Vs Rs 33.1 crore, YoY

#2 Revenue grows 13.8 percent to Rs 103.7 crore Vs Rs 91.1 crore, YoY