Closing Bell: Nifty at 24,750, Sensex falls 495 pts; autos drag, IT shines

Indian equity indices ended lower for the third straight session on October 17 with Nifty at 24,750. At close, the Sensex was down 494.75 points or 0.61 percent at 81,006.61, and the Nifty was down 221.50 points or 0.89 percent at 24,749.80.

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.

Today, the benchmark indices witnessed a sharp selloff, the Nifty ends 220 points lower while the Sensex was down by 500 points. Among sectors all the major sectoral indices registered profit booking at higher levels but realty and auto lost the most fell over 3.5 percent. Technically after a muted opening Nifty breached important level of 24900/81500 and post breakdown the selling pressure intensified.

On daily chart the index has formed bearish candle and on intraday charts it is holding a lower top formation. We are of the view that the market texture is weak and as long as Nifty trades below 24900/81500 weak sentiment is likely to continue. On the downside the market could slip till 24550-24500/80900-80600. On the flip side, above 24825/81300 we could see a one quick pullback rally till 24850-24900/81400-81500.

#1 EBIT up 3.5% at Rs 3,732 crore versus Rs 3,605.7 crore, QoQ

#2 Margin at 16.8% versus 16.5%, QoQ

Finally, the Index broke its range of 24,920-25,200. After a muted opening, Auto stocks led correction dragged the Index lower and in the second half of the trading session, another round of selling pulled the Index further lower to end the session at 24,749.85 with a loss of 221.45 points. Barring IT, all the other sectors ended the session in red with Realty and Auto being the major laggards. Broader markets underperformed the Frontline Index as Mid and Smallcaps tanked by 1.66% & 1.24% respectively.

A bearish marubozu open candle on the daily chart depicts a strong domination of bears but the Index stands at a strong support level of 24,750 (tested on 9th September and 7th October).

A break below the mentioned level will drag the Index towards 24,430; and in the case of a reversal, 24,950 will be considered as immediate resistance.

#1 Rupee revenue up 4.3% at Rs 40,986 crore vs Rs 39,315 crore, QoQ

#2 EBIT up 4.4% at Rs 8,649 crore vs Rs 8,288 crore, QoQ

#3 Margin at 21.1% vs 21.1%, QoQ

The Nifty has found initial support in the 24,700–24,750 zone. On the daily chart, the Nifty has broken down from a bearish flag pattern, suggesting a possible downward move in the short term.

The RSI is showing a bearish crossover and is declining. However, this may not be the ideal level to initiate short positions, as the index has experienced a steep correction and is near a double-bottom support, which could trigger a near-term recovery toward 25,000. Conversely, a decisive fall below 24,700 could lead to a significant correction in the market.

The domestic market experienced significant losses driven by widespread selloffs across various sectors, notably auto, realty, consumer durables and finance. This downturn was attributed to weaker sales forecasts for the festive season, high NPAs and slow credit growth. Weak Q2 result is affecting the market sentiment. Conversely, the IT sector outperformed as a contrary bet and in-line Q2 results.

Markets continued its downward trajectory despite firm US and European cues, as foreign fund selling coupled with a sharp fall in automobile stocks ahead of the final day's IPO subscription of Hyundai weighed on sentiment.

As expensive valuations continue to bite, banking, realty, metals and telecom shares also attracted significant profit-taking.

QIB – 6.95 times

NII – 0.60 times

Retail – 0.49 times

Employee Reserved – 1.70 times

Overall – 2.35 times

Indian rupee ended 8 paise lower at 84.07 per dollar on Thursday versus Wednesday's close of 83.99.

Indian equity indices ended lower for the third straight session on October 17 with Nifty at 24,750.

At close, the Sensex was down 494.75 points or 0.61 percent at 81,006.61, and the Nifty was down 221.50 points or 0.89 percent at 24,749.80. About 1199 shares advanced, 2580 shares declined, and 101 shares unchanged.

Biggest Nifty losers were Bajaj Auto, Shriram Finance, Hero MotoCorp, Nestle and M&M, while gainers were Tech Mahindra, Infosys, L&T, Power Grid Corp and SBI.

Among sectors, except Information Technology index (up 1 percent), all other sectoral indices ended in the red with auto, media and realty down 2-3 percent.

The BSE midcap and smallcap indices shed more than 1 percent each.

#1 Q2 VNB was in-line as pressure from margin compression was offset by higher-than-expected APE growth

#2 Mid-teens VNB growth guidance in FY25, is doable

#3 It looks well placed to benefit in a post new regulation regime

#1 As per company, industry retail sales in the initial part of the festive season were slower than expected

#2 Company expects industry to grow at ‘around 5 percent’ vs market estimate of 8- 10 percent

#3 Management aims to maintain margin at current levels – rise of EVs could offset mix gains

Indian Rupee declined on weak domestic markets and a strong US Dollar. However, a decline in crude oil prices cushioned the downside. Dollar index rose as China’s stimulus failed impress the investors. Weak Euro ahead of ECB’s monetary policy meeting decision also supported the American currency. ECB is expected to cut interest rates by 25 bps.

We expect Rupee to trade with a negative bias on strong Dollar and weak domestic markets. FII outflows may further pressurise the Rupee. However, soft crude oil prices and contained geopolitical tensions in the Middle East may support the Rupee at lower levels. Traders may take cues from retail sales, industrial production and weekly unemployment claims data from the US. USDINR spot price is expected to trade in a range of Rs 83.85 to Rs 84.30.

QIB – 6.76 times

NII – 0.52 times

Retail – 0.47 times

Employee Reserved – 1.66 times

Overall – 2.27 times

The Sensex was down 536.84 points or 0.66 percent at 80,964.52, and the Nifty was down 227.10 points or 0.91 percent at 24,744.20.

#1 A mixed bag in Q2– marginally better revenues with margin miss

#2 FY25 guidance of 8-10 percent organic growth retained

#3 With investments front-loaded, aspiration for 16 percent EBIT margin in FY25 looks challenging

#4 Lower FY25-27 EPS by 2-5 percent

Muthoot Finance has raised $400 million through the sale of dollar-denominated bonds maturing in 4.5 years, offering a 6.375% semi-annual coupon. Bids opened on Wednesday and closed on Thursday, with the company receiving over $1.1 billion in bids from various investor categories and regions, according to merchant bankers.

FPIs Societe Generale, UBS and Tiger Pacific have reduced stakes in Paytm to below 1 percent. Despite a recent rally, Paytm shares are still down 25 percent on a yearly basis amid widening losses and reduced revenue.

QIB – 6.21 times

NII – 0.42 times

Retail – 0.45 times

Employee Reserved – 1.61 times

Overall – 2.08 times

#1 Unfavorable ruling in gCabometyx patent case

#2 Based on this ruling, believe MSN/Co might not be able to launch product before Jan 2030

#3 Delay in launch of gCabometyx patent case means downside to FY27 estimates

#4 Build USD 300 mn of revenue for Zydus & earnings of Rs 10 in FY27

#1 Q2 EBITDA & recurring PAT rose 21-24 percent YoY but were slight 3-4 percent below estimates

#2 Company expects just 3-5 percent growth in motorcycles in festive

#3 Management is optimistic on continued QoQ improvement in exports

#4 Rising Indian 2-w demand & cyclical recovery in exports to drive 14 percent volume CAGR over FY24-27

#5 Company also gaining share in e-2Ws, ramping up CNG bike volumes, & expanding capacity in Brazil

The Government of India has decided to exercise a green shoe option of up to 2.5 percent in the offer for sale of Cochin Shipyard on October 17.

The offer for sale was subscribed 2.16 times the base size by non-retail investors on October 16. The issue will be opened for retail investors on October 17.

The government is selling a 5 percent stake (including a 2.5 percent base issue size and a 2.5 percent green shoe option) in Cochin Shipyard.

The cement major has added 1.2 MTPA grinding capacity at its Arakkonam plant in Tamil Nadu. With this addition, its total cement capacity has reached 156.06 MTPA.

Rail Vikas Nigam has emerged as the lowest bidder for a project worth Rs 270 crore from Maharashtra Metro Rail Corporation. The project involves the construction of 10 elevated metro stations.

#1 Collections grow 16 percent YoY and down 10 percent QoQ to Rs 550 crore

#2 Sales value rises 22 percent YoY and 8 percent QoQ to Rs 770 crore

#3 Realisation increases 16 percent YoY and 1 percent QoQ to Rs 7,472 per square feet

#4 Sales volume jumps 5 percent YoY and 7 percent QoQ to 1.03 million square feet

Infosys, Wipro, Axis Bank, LTIMindtree, Tata Chemicals, Tata Communications, Ceat, Havells India, Jindal Stainless, Central Bank of India, Indian Overseas Bank, 5paisa Capital, Geojit Financial Services, Deccan Bearings, Dhanlaxmi Bank, Harshil Agrotech, Mahindra EPC Irrigation, National Standard, Polycab India, Quick Heal Technologies, Shemaroo Entertainment, Steel Exchange India, SW Investments, and Tanla Platforms will announce their quarterly earnings on October 17

QIB – 3.18 times

NII – 0.37 times

Retail – 0.44 times

Employee Reserved – 1.56 times

Overall – 1.21 times

The passenger traffic in September grew by 9 percent YoY but fell by 4 percent MoM to 1.02 crore, while aircraft movements increased by 8 percent YoY and declined by 4 percent MoM to 67,018.

The total volume, including surface and air express, stood at 108 kt for September, increasing by 6.9 percent over the previous month, but falling by 0.9 percent from 109 kt in September 2023.

The company has fixed October 28 as the record date for determining the eligibility of equity shareholders for bonus equity shares. The issue of bonus shares was passed with more than the requisite majority in e-voting on October 15.

#1 Q2 EBITDA growth was muted at 8 percent YoY, 15 percent below estimates, as sales & margin both missed

#2 Extra high voltage cable sales declined

#3 Deliveries should rise ahead as transmission ordering picks-up

#4 Retail rose and drove Q2 17 percent YoY sales growth

#5 Management maintained FY25 revenue guidance of 16-17 percent YoY rise and 10.5-11 percent margin

#6 Believe next 12-18 months KEI will show positive surprise on power T&D orders

The board has approved the issuance of non-convertible debentures worth up to Rs 1,500 crore on a private placement basis. Additionally, it plans to launch a residential project named Jardin at Oberoi Garden City, Thane, on October 18.

Aditya Birla Digital Fashion Ventures (ABDFVL), a wholly owned subsidiary of the company, has infused Rs 75 crore into Wrogn, increasing its shareholding in Wrogn from 17.10 percent to 32.84 percent.

The company's board has decided to invest up to GBP 69 million in EIH London Investments for a 100 percent stake. EIH London Investments has not yet commenced its business operations.

#1 Q2 earnings missed expectations

#2 Management commentary was constructive on deal pipeline & broad-based growth by vertical

#1 Q2 marginally below estimates due to slight miss in ASPs & gross margin

#2 Management expressed optimism on company’s e-2ws, CNG bike and 3-w segments

#3 There is some revival in exports

#4 Tad surprised by outlook on festive demand

#5 Vahan data suggests registrations are up almost 12 percent YoY

JSW Renew Energy Seventeen, a step-down subsidiary of the company, has signed a power purchase agreement for a STU-connected 192 MW Wind-Solar Hybrid capacity with Gujarat Urja Vikas Nigam.

The Sensex was down 455.44 points or 0.56 percent at 81,045.92, and the Nifty was down 193.80 points or 0.78 percent at 24,777.50. About 1060 shares advanced, 2252 shares declined, and 84 shares unchanged.

QIB – 0.80 times

NII – 0.31 times

Retail – 0.42 times

Employee Reserved – 1.50 times

Overall – 0.52 times

The company's subsidiary, Sintex-BAPL, has completed the acquisition of a 100 percent stake in Weetek Plastic from the current shareholders. Following the acquisition, Weetek Plastic becomes a wholly owned step-down subsidiary of the company. Weetek Plastic manufactures plastic pipes, fittings, and water storage tanks with a combined capacity of 19 KMPTA in Raipur, Chhattisgarh.

Infosys, Wipro, Axis Bank, Nestle India, LTIMindtree, Tata Chemicals, Tata Communications, Ceat, Havells India, Jindal Stainless, Central Bank of India, Indian Overseas Bank, 5paisa Capital, Geojit Financial Services, Deccan Bearings, Dhanlaxmi Bank, Harshil Agrotech, Mahindra EPC Irrigation, National Standard, Polycab India, Quick Heal Technologies, Shemaroo Entertainment, Steel Exchange India, SW Investments, and Tanla Platforms will announce their quarterly earnings on October 17

Bajaj Auto’s Q2FY24 revenue grew by 22 percent yoy supported by healthy double-digit volume growth. Recovery in the two-wheeler export segment remains a positive for Bajaj Auto. Further, the company also reported sharp growth in the electric scooter segment in Q2FY24, partly supported by increase in distribution network access.

The company indicated that the festive season started on a weak note and thereby demand pick-up during Diwali festival will be important for the domestic two-wheeler industry.

QIB – 0.65 times

NII – 0.28 times

Retail – 0.41 times

Employee Reserved – 1.45 times

Overall – 0.46 times

#1 Prolonged growth difficulties; negative surprises may be ahead

#2 Weak agro chem demand, with China to gain share

#3 Cut FY25/FY26 EPS 20 percent/22 percent

The company has signed a Memorandum of Understanding (MoU) with Patel Engineering for collaboration and cooperation to jointly execute mutually beneficial business opportunities in various infrastructure projects in India and overseas.