Closing Bell: Nifty back above 24,800, Sensex up 218 pts led by metal, banks

The Indian benchmark indices broke 3-day losing streak and ended higher with Nifty above 24,850 on October 18. At close, the Sensex was up 218.14 points or 0.27 percent at 81,224.75, and the Nifty was up 104.20 points or 0.42 percent at 24,854.

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.

Immediate resistance is seen at 24,900, which previously acted as support. A decisive move above 24,900 could induce a short-term rally. The trend is likely to remain strong as long as the Nifty stays above 24,750.

The markets experienced a volatile session on Friday but managed to gain nearly half a percent, offering a brief pause after the recent decline. Continuing the trend from the previous session, the Nifty opened with a gap down and dipped in early trade. However, a strong recovery in select heavyweights, particularly from the banking sector, led to a swift rebound. Along with banking, metals performed well, though the IT and FMCG sectors ended in the red. Despite the volatility, the broader indices closed nearly unchanged.

Participants should not overanalyze the single-day rebound and instead wait for a decisive close above 25,150 in Nifty for any signs of a sustained recovery. After the strong recovery in the banking sector, the market's reaction to major banks like HDFC Bank and Kotak Bank in early trade on Monday will likely set the tone for the session. Meanwhile, we maintain a cautious outlook on the markets and advise keeping a close watch on position sizes amidst the ongoing choppiness.

After the morning sell-off, the market bounced from the oversold level driven by selective buying in financials, auto and metals stocks. Initial set of results from private banks were positive, building an expectation that the upcoming set of financial results in the weekends will also be optimistic. The metals also performed well, benefiting from a slightly better-than-expected growth in China’s Q3 GDP. Consecutive rate cuts by the ECB supported rate sensitive stocks.

#1 Market posts weekly losses for 3rd straight week, longest losing streak of 2024

#2 Friday’s surge helps market cuts weekly loss, Sensex & Nifty down 0.2-0.4 percent

#3 Financials outperform this week led by ICICI Bank & HDFC Bk, Nifty Bank up 2 percent

Markets reversed the 3-day fall as investors resorted to value buying in banking, metals and realty stocks which had seen sharp downfall in recent sessions. Geo-political uncertainty coupled with sluggishness in the Chinese economy and persistent FII outflows from the domestic markets have led to caution.

Indian rupee ended flat at 84.07 per dollar on Friday versus Thursday's close of 84.07.

The Indian benchmark indices broke 3-day losing streak and ended higher with Nifty above 24,850 on October 18.

At close, the Sensex was up 218.14 points or 0.27 percent at 81,224.75, and the Nifty was up 104.20 points or 0.42 percent at 24,854. About 1833 shares advanced, 1928 shares declined, and 106 shares unchanged.

Axis Bank, Wipro, Eicher Motors, ICICI Bank, Shriram Finance were among the top gainers on the Nifty, while losers included Infosys, Britannia Industries, Nestle India, HUL and Asian Paints.

Among sectors, bank and metal rose more than 1 percent each, while IT index was down more than 1 percent and FMCG index was down 0.5 percent.

BSE smallcap indices ended in the red, while Midcap index ended marginally higher.

#1 Growth recovery likely to be gradual

#2 Growth to lag mid-cap peers in FY25-26

#3 Q2 revenue growth ahead, EBIT margin broadly in-line with estimates

#4 Deal pipeline robust with focus on deal-to-revenue conversion

#5 EBIT margin likely to remain stable

#6 Trades at 26x FY27 EPS, which find expensive

#1 With slight miss in Q2 revenue & weak deal wins, see bit of stock correction as possible in near-term

#2 See support at five-year average FCF multiple (24x) – i.e. at Rs 1,780

#3 Build positions on any potential correction

#1 Lack of positive surprises in Q2 could drive near-term stock weakness

#2 Softer-than-expected commentary on Q3 could drive near-term stock weakness

#3 Broader recovery trends are intact with BFSI momentum sustaining, large deal pipeline, & strong headcount additions

#4 Would use any weakness to accumulate stock

#1 Q2 beat estimates on better revenue and higher other income

#2 Margin performance was supported by one-offs of which they would be down 90 bps QoQ

#3 Broad-based revenue pressures & disappointing Q3 guidance suggest a weak growth outlook

#4 Raise EPS estimate by 1-3 percent on higher other income and expect 6 percent EPS CAGR over FY25-27

#1 Revenue Q2 was at Rs 7990 crore, up 21% YoY

#2 Total costs Rs 5330 crre, up 13% YoY

#3 Other income Rs 268 crore, up 16% YoY

#4 To invest Rs 327 crore in Serentica renewables ; to hold minimum 26% equity in Serentica

#1 Trading volume was 10.7 mln shares, five time the 20 day average of 1.96 million shares for this time of day: Bloomberg reported

#1 Strong large deal win momentum in Q2, Q3 guidance reflects weak seasonality

#2 Q2 was a beat across all parameters

#3 Discretionary demand showing early signs of a recovery

#4 Robust execution on margin continues despite weak growth

#5 Stock is trading at around 19.2x FY27 EPS

The company has incorporated its wholly-owned subsidiary, Coromandel Vietnam Company, in Vietnam. The subsidiary will help the company carry out export, import, wholesale, and retail distribution of agricultural inputs such as crop nutrition, crop protection chemicals, and bio-products.

The pharma company has received final approval from the United States Food and Drug Administration (USFDA) to manufacture Fludrocortisone Acetate tablets USP, 0.1 mg. Fludrocortisone acetate tablets are used as partial replacement therapy for primary and secondary adrenocortical insufficiency in Addison's disease and for the treatment of salt-losing adrenogenital syndrome.

Akums Drugs and Pharmaceuticals has entered into a Memorandum of Understanding with The Government of Republic of Zambia through Ministry of Health for local manufacturing of medicines and to recognize the existing collaboration between the Zambian Government and Akums in the field of medicines and medical supplies and to strengthen collaboration between the entities.

#1 Strength in BFS & TMT verticals sustaining as per encouraging management commentary

#2 Pick-up in deal wins needed for trends to sustain in our view

#3 Vendor consolidation presents both opportunities & challenges

#4 Valuations are not cheap either

#1 Q2 profit was in-line with estimates

#2 Company posted its highest-ever Q2 sales led by strong +28 percent growth in domestic C&W

#3 Wires growth outpaced cables

#4 OPM was however impacted by higher competition & mix change

#5 FMEG posted healthy +18 percent sales, but loss continues

Ajmera Realty and Infra approved issue and allotment of 31,64,557 equity shares, having face value of Rs 10 per equity share on preferential basis at an issue price of Rs 711 per equity share aggregating to Rs 2,25,00,00,027 for cash.

FIIs including endowment funds, sovereign wealth funds and pension funds have been investing in Indian equities for many years now. India has been the best performing emerging equity market during the last ten to twenty years and there is no other emerging market which provides as much diversity and growth prospects like India. Therefore foreign funds like CPPIB will continue to invest and remain invested in India unless the diplomatic relations between the two countries totally break down and the governments of the two countries take drastic steps. This appears unlikely now.

The company has executed and commissioned another 5 MW solar power project (auto-tracker modules) facility out of the total 15 MW solar power project. With this, a cumulative 10 MW is now operational. The remaining execution is scheduled to be completed in the coming month.

HDFC Bank, Kotak Mahindra Bank, Tech Mahindra, RBL Bank, Dalmia Bharat, UCO Bank, IndiaMART InterMESH, Multi Commodity Exchange of India, Netweb Technologies India, PC Jeweller, Punjab & Sind Bank, Rossari Biotech, Seshasayee Paper & Boards, SM Auto Stamping, Trident Lifeline, Eiko Lifesciences, High Energy Batteries, and Lloyds Engineering Works will announce quarterly numbers on October 19.

Tata Consumer Products, Jio Financial Services, ICICI Lombard General Insurance Company, Zee Entertainment Enterprises, Aether Industries, L&T Finance, Manba Finance, Mastek, Jindal Saw, Oberoi Realty, Hindustan Zinc, Tejas Networks, Kesoram Industries, Ashapuri Gold Ornament, Benares Hotels, Best Agrolife, Duncan Engineering, Elecon Engineering, Ganesh Housing Corporation, GNA Axles, Indostar Capital Finance, Mangalore Refinery & Petrochemicals, Mudra Financial Services, Ponni Sugars (Erode), Sarveshwar Foods, Supreme Infrastructure India, and Tree House Education will release quarterly earnings scorecard on October 18.

#1 Inflection point around the corner; valuation palatable

#2 See inflection point in terms of growth, asset quality, & profitability

#1 Q2 was another miss on topline & bottomline

#2 Other expenses were higher, led by ad spend

#3 Exceptional gain of Rs 180 crore reported on slump sale of nutraceutical & Nestle business services division

#1 RBI's embargo on new business by Asirvad could hurt profit materially & for longer

#2 Cut consolidated earnings forecast by 20 percent for FY25 & 30 percent across FY26-27

#3 Despite the earnings cut at standalone entity, standalone valuation remains cheap

#4 Think investor interest could take long to return

The company has completed the Qualified Institutional Placement (QIP) amounting to Rs 4,200 crore ($500 million). The proceeds from the QIP will be utilized for funding capital expenditure, debt repayment, and general corporate purposes.

The company has entered into a one-time settlement (OTS) with Life Insurance Corporation of India (LIC) for its debt facilities. LIC has approved the OTS proposal, and accordingly, the company paid the one-time settlement amount on October 16 towards its entire dues outstanding with LIC.

Reliance Brands Holding UK, a wholly-owned subsidiary of Reliance Brands, has deepened its partnership with Mothercare Plc by forming a new joint venture that will own the Mothercare brand and its intellectual property assets across India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

Reliance Brands first acquired the rights to the UK-based Mothercare brand for the Indian market in 2018. Reliance Brands Holding will hold a 51 percent stake in the new joint venture, while Mothercare will own a 49 percent interest.

RPP Infra Projects has been received letter of acceptance for a new projects - design and build of 7MLD product water conveyance system from the 20 MLD Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kelavarapalli Hosur to SIPCOT Industrial Park Shoolagiri Phase I & II Krishnagiri District, Tamil Naud with Operation and Maintenance for 1 year on DBO Basis for Contract value of Rs 28.25 crores (Including GST) and providing internal water supply arrangements including construction of 2 Nos of Pump Room In SIPCOT Industrial Park, Shoolagiri phase I for contract value of Rs 7.35 crore (Including GST).

#1 Q2 was a mixed bag with beat at revenue but modest miss at margin

#2 Another guidance lift for FY25

#3 Project maximus’ impact on margin continues to play out

#4 Less than 1 percent change in FY25-27 EPS; reiterate as top pick

#1 Q2 margin miss on commodity volatility & higher ad spend; valuations factoring in recovery

#2 Maintain 16 percent revenue growth momentum (ex-lloyd) to sustain over FY25-27

#3 Revenue growth of 16 percent led by new capacities in W&C segment, premiumisation push in ECD

#4 Growth implies 19 percent/24 percent YoY revenue/EBITDA growth in H2

#5 Delayed price hikes & slower consumption demand can delay expected improvement margins

#6 Stock trades at 45.3x FY27 EPS

#1 Q2 was steady quarter amid muted expectations

#2 Loan/deposit growth soft QoQ but in-line; higher write-offs, lower net slippages aid gross NPL

#3 Treasury gains offset softer core PpOP; one-off tax gains used to shore up provision buffers

#4 Risk-reward favourable at 1.6x FY26 BVPS for RoE of 15-16 percent

Setback for airport operators like GMR Airport Infra and others as the Supreme Court is set to hear AERA’s plea against airports fixing cargo and ground handling charges. Apex Court says plea by AERA is maintainable.

Mazagon Dock dividend, stock split: PSU Mazagon Dock share price jumped over 5 percent on October 18 as the company announced to mull stock split and interim dividend in its board meeting on October 22, Tuesday.

The company has also fixed the record date of Wednesday, 30 October 2024 for the purpose of payment of interim dividend on equity shares for the financial year 2024-25, if declared by the board.

On CNBC-TV18        

-BFSI Earnings For IT Cos Have Held  Up Well In Q2FY25

-Headcount Has Increased In Q2, After Being Rationalised In Prior Qtrs

-Wipro Was In-line To Better Than Est

-Wipro Is The Least Expensive Stock In Terms Valuations Amongst Tier 1 IT Cos

-Wipro Has Tactical Triggers Like A Possible Increase In Capital Allocation

-HCLTech Has Been Re-rated, Partly Because Its Stepped Up Its Capital Allocation

-Infosys Number Were A Tad Disappointing Vs Expectations

-LTIMindtee Saw Pushback Of Wage Hikes, Growth Driven Largely By 3rd Party Software

Wipro shares surged nearly 5 percent on October 18 after the IT giant delivered earnings that exceeded street expectations on all major fronts, marking its first sequential revenue growth in six quarters of decline.

Wipro's consolidated net profit for Q2 FY25 rose by nearly 7 percent quarter-on-quarter to Rs 3,209 crore, surpassing Moneycontrol's estimate of Rs 3,011 crore. Revenue from operations increased by 1.5 percent QoQ to Rs 22,302 crore, beating Moneycontrol's forecast of Rs 22,219 crore.

Operating margins for the quarter improved by 30 basis points to 16.8 percent, exceeding the anticipated 16.4 percent.

The private sector lender has reduced its savings account interest rates by 50 basis points for account balances under Rs 5 lakh, bringing the new rate to 3 percent, down from the previous 3.5 percent, reports CNBC-TV18. Earlier, the bank offered two slabs for savings account interest rates: 3.5 percent for account balances below Rs 50 lakh and 4 percent for balances above Rs 50 lakh. The savings account rate slabs for balances above Rs 5 lakh remain unchanged.

#1 Profit sinks 41.5 percent to Rs 121.5 crore Vs Rs 207.7 crore, YoY

#2 Revenue rises 8.2 percent to Rs 3,304.5 crore Vs Rs 3,053.3 crore, YoY

#3 EBITDA falls 20.6 percent to Rs 362.3 crore Vs Rs 456.1 crore, YoY

#4 Margin tanks 390 bps to 11 percent Vs 14.9 percent, YoY

#1 Profit increases 15 percent to Rs 21.9 crore Vs Rs 19 crore, YoY

#2 Revenue rises 4 percent to Rs 100.8 crore Vs Rs 96.9 crore, YoY