Closing Bell: Nifty below 23,900, Sensex falls 821 pts; auto, bank, FMCG top drags

Indian equity indices ended on weaker note with Nifty below 23900 on November 12 amid selling across the sectors. At close, the Sensex was down 820.97 points or 1.03 percent at 78,675.18, and the Nifty was down 257.80 points or 1.07 percent at 23,883.50.

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

The Nifty slipped from its recent consolidation on the daily chart, indicating growing pessimism in the market. The index has been holding below key short-term moving averages, specifically the 21-EMA and 50-EMA, further weakening sentiment. The daily RSI is declining, accompanied by a bearish crossover. In the short term, the index may move towards the 23,600–23,650 range, while resistance on the higher end is seen at 24,000.

FII-triggered selling pressure continued to impact the domestic market. The recent strengthening of the dollar, driven by aggressive ‘Trumponomics’ is adding fears. Additionally, the anticipated rise in domestic inflation, due to increasing food prices, along with depreciating INR, may influence the RBI’s monetary policy. Most sectors were in the red, while IT stocks gained on expectations of increased US IT spending.

The markets remained under pressure, shedding over a percent, extending the ongoing correction phase. Despite an initial uptick, Nifty witnessed sharp swings in the first half before selling pressure in heavyweight stocks shifted the momentum downward. Most sectors, including auto, FMCG, and metal, faced losses in line with the benchmark indices. Broader indices were not spared either, losing nearly 1.5% each.

Nifty has now edged closer to its previous swing low i.e. around 23800, with banking heavyweights leading the decline and dampening hopes of a recovery once again. Current signals suggest a potential test of the long-term moving average at the 200 DEMA level, around 23,540. Participants should adjust their positions accordingly and prioritize selective stock picking.

Resistance at the higher levels played their stringency well as after a strong opening; the Bears struck with full force and breached the psychological level of 24,000. At close, Nifty50 settled the trade at 23,883.45 with a loss of 257.85 points. Except for Realty and IT, all the other sectors ended the session in red where Auto and PSU Bank were the major laggards. Mid and Smallcaps more or less moved in tandem with the Frontline Index and corrected over 1%.

On the daily chart, the Index has formed a Bearish Engulfing pattern which indicates a strong domination of Bears. Now, the immediate support is placed at 23,800 and in the case of violation, it would drag the Index further lower to 23,650; on the flip side, multiple resistance points are there with immediate being at 24,100 where the Index will find selling pressure.

Indian rupee ended flat at 84.39 per dollar on Tuesday versus Monday's close of 84.38.

Indian equity indices ended on weaker note with Nifty below 23900 on November 12 amid selling across the sectors.

At close, the Sensex was down 820.97 points or 1.03 percent at 78,675.18, and the Nifty was down 257.80 points or 1.07 percent at 23,883.50. About 1155 shares advanced, 2641 shares declined, and 93 shares unchanged.

Biggest losers on the Nifty were Britannia Industries, HDFC Bank, NTPC, Asian Paints and Bharat Electronics, while gainers included Trent, HCL Technologies, Sun Pharma, Infosys and Reliance Industries.

Among sectors, all the sectoral indices ended in the red with auto, bank, capital goods, FMCG, metal, oil & gas, power, telecom, media, pharma down 0.5-2 percent.

BSE Midcap and Smallcap indices shed 1 percent each.

#1 Management sounded less optimistic on near-term demand

#2 Company cuts FY25 volume growth guidance to single digit

#3 Margin guidance reiterated, but see potential downside risk

#1 Q2 EBITDA below estimates on weak volumes

#2 It is likely to have lost market share in key geographies

#3 Cement ASP largely flat QoQ, leading to better-than-industry profitability

#1 Q2 above estimates, sales growth of 8.4 percent YoY tad below estimates

#2 Revenue growth guidance of double-digit retained for FY25

#3 Medium-term guidance indicates step-up in sales growth & EBITDA

Acme Clean Energy Limited, a diversified renewable energy company, is set to make its stock market debut. While the IPO received a decent subscription of 2.89 times, the current grey market premium (GMP) of - Rs 4 (-1.38%) indicates a potential for a negative or flat listing.

Acme Clean Energy operates in a promising sector with a focus on renewable energy sources. The company has demonstrated strong growth and improved profitability in recent times. However, a high debt-to-equity ratio remains a concern. The IPO's valuation appears reasonable, but the current market sentiment and the company's historical financial performance may influence the listing outcome.

Investors should exercise caution and consider the potential for volatility in the short term. While the company's long-term growth prospects are encouraging, the near-term market dynamics and the impact of external factors could influence the stock's performance post-listing.

#1 Q2 EBITDA better than estimates on lower costs

#2 Revenue in-line with volumes declining 3 percent YoY & pricing are lower 5 percent QoQ

#3 Leverage ratios remain elevated

#1 Company gave a cautious/guarded outlook

#2 Company expects FY25 volumes growth to be in single digit

#3 Margin range guidance of 18-20 percent for next few years

STL-DBL Consortium has been declared L1 in the prestigious BSNL Bharat Net Phase – III Broadband Connectivity Project, funded by USOF with a value of 1,625.36 crore (inclusive GST) to provide Middle mile and Last mile connectivity in Jammu & Kashmir and Ladakh regions, wherein the DBL portion for Project Execution is 70.23%.

#1 Reported a slight EBITDA beat on the back of better realisation

#2 Strategy becomes confusing, focus was volume in Q1 & value in Q2

#3 Due to industry headwinds, cut EBITDA estimates by 9-15 percent

Swiggy, a leading player in India's burgeoning food delivery and e-commerce sector, is set to make its stock market debut. While the IPO received a decent subscription of 3.59 times, the current grey market premium (GMP) of around Re 1 (0.26%) indicates a muted investor response. This subdued sentiment is likely influenced by the company's continued losses, despite steady revenue growth.

The IPO's valuation, while appearing reasonable based on certain metrics, presents a challenge due to negative earnings. Additionally, the current volatile market conditions may further impact the listing performance.

Given these factors, a cautious approach is recommended. Investors with a high-risk tolerance and a long-term perspective may consider the IPO, but it's essential to acknowledge the potential risks associated with the company's current financial position and the broader market uncertainties.

#1 Revenue up 33% YoY to Rs1370 crore

#2 Net profit up 83% YoY to Rs 677 crore

#3 Total costs Rs 617 crore, down 0.6% YoY

#4 Other income Rs63.80 crore vs Rs 29.40 crore YoY

#1 Net profit at Rs353 cr vs Rs348 cr (YoY)

#2 Revenue up 8% at Rs4,700 cr vs Rs4,352 cr (YoY)

#3 EBITDA up 38.7% at Rs896 cr vs Rs646 cr (YoY)

#4 Margin at 19% vs 14.8% (YoY)

The Sensex was down 601.86 points or 0.76 percent at 78,894.29, and the Nifty was down 192.10 points or 0.80 percent at 23,949.20.

#1Strategy changed again, good prices prioritised over volumes

#2 H2FY25 should be good, as for other large cement players

#3 Limited clarity around capacity & volumes market share gains

#1 Domino’s sales per store declined 1.1 percent YoY, LFL growth slightly below estimate

#2 Domino’s India is seeing a shift to delivery from dine-in, which is dilutive to margin

#3 Management indicated an acceleration to SSSG in Q3

#4 Cut FY25-27 earnings estimates by 17-32 percent

Godrej Industries has signed a Business Transfer Agreement with Savannah Surfactants Limited (Goa) with the intention to acquire their Food Additives and Emulsifier business.

NTPC Green Energy IPO grey market premium (GMP) has declined amid buzz about the company preparing to file its red herring prospectus (RHP).

The drop in GMP is seen as a response to broader market pressures with continued foreign institutional investor (FII) selling, lacklustre quarterly earnings and weak trends in Asian markets dampening investor sentiment. The multiple factors are also impacting liquidity in the primary market, weighing down enthusiasm for upcoming IPOs. Read More

#1 Profit surges over 9-fold to Rs 53.4 crore Vs Rs 5.6 crore, YoY

#2 Revenue grows 22.1 percent to Rs 146.6 crore Vs Rs 120 crore, YoY

#1 Profit grows 15.7 percent to Rs 61.5 crore Vs Rs 53.2 crore, YoY

#2 Revenue falls 9.9 percent to Rs 627.1 crore Vs Rs 696 crore, YoY

#1 Profit drops 74.7 percent to Rs 25.6 crore Vs Rs 101.3 crore

#2 Revenue declines 12.5 percent to Rs 2,038.2 crore Vs Rs 2,329.3 crore

At noon, the Sensex was down 11.27 points or 0.01 percent at 79,484.88, and the Nifty was down 10.70 points or 0.04 percent at 24,130.60. About 1,774 shares rose, 1,510 fell, and 87 were unchanged.

#1 Net Profit rises 9% to Rs 245 crore vs Rs 225 crore (YoY)

#2 Revenue up 17% to Rs 4,245 crore vs Rs 3,621 crore (YoY)

#3 EBITDA up 20% to Rs 483 crore vs Rs 401 crore (YoY)

#4 Margin at 11.4% vs 11.1% (YoY)

#1 Managed to continue with a positive SSSG in a tough macro environment

#2 Delivery continued to show respectable growth, dine-in suffered

#3 Management is unapologetically focusing on growth

#1 Profit zooms 67.5 percent to Rs 101.7 crore Vs Rs 60.7 crore, YoY

#2 Revenue jumps 36 percent to Rs 518.2 crore Vs Rs 381.4 crore, YoY

Hyundai Motor India, FSN E-Commerce Ventures Nykaa, Zydus Lifesciences, Bosch, General Insurance Corporation of India, Ashoka Buildcon, Cello World, CESC, Diffusion Engineers, EIH, EMS, Entero Healthcare Solutions, EPACK Durable, Finolex Cables, Jyothy Labs, Kronox Lab Sciences, Samvardhana Motherson International, Natco Pharma, Stanley Lifestyles, Sula Vineyards, Sunteck Realty, TBO TEK, and Techno Electric & Engineering Company will announce their September quarter earnings on November 12.

#1 Profit stands at Rs 12.1 crore Vs loss of Rs 87.1 crore, YoY

#2 Revenue declines 22.4 percent to Rs 4,390.4 crore Vs Rs 5,655.4 crore, YoY

#1 Sharp stock correction appears an overreaction

#2 On course to recovery as expect further improvements in H2

#3 Rights issue/other initiatives are levers for debt reduction

The Sensex was up 37.01 points or 0.05 percent at 79,533.16, and the Nifty was up 11.90 points or 0.05 percent at 24,153.20.

#1 Demand trends remain uninspiring

#2 Initiatives are showcasing improving growth trends

#1 Miss on all fronts in Q2

#2 Inflation hurts demand & profit

#3 Had earlier guided revenue growth to be in-line with volume growth by Q3

#4 Downside risk to the guidance seems likely