Closing Bell: Nifty below 24,800, Sensex falls 73 points; metal, media, IT major drag

Indian equity indices ended on a weak note with Nifty below 24,800 on October 21. At close, the Sensex was down 73.48 points or 0.09 percent at 81,151.27, and the Nifty was down 72.90 points or 0.29 percent at 24,781.10.

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 markets experienced volatility and ended nearly flat, primarily in response to mixed earnings reports. After an initial uptick, Nifty saw a sharp decline and fluctuated within a narrow range, closing at 24,815. Most sectors faced pressure, with metal, IT, and FMCG stocks leading the losses. The broader indices also dipped, shedding nearly 1.5% each.

Despite selective rebounds in heavyweight stocks, supported by earnings, most gains appear unsustainable, mainly to prevailing bearish sentiment. We may see consolidation in the current scenario in Nifty however the overall tone is expected to remain negative. Traders should maintain a stock-specific strategy, focusing on risk management.

Nifty opened gap up however it reversed sharply and closed in the red down ~73 points. Nifty witnessed selling pressure from the 25000 mark which coincides with high concentration of open interest on the call side implying resistance. On the downside the 20-week average (24730) which was defended well last week is being tested again. So there is a standoff between bulls and bears leading to heightened volatility. Overall, we expect a rangebound price action in the range 24500 – 25200 from short term perspective.

Bank Nifty opened with a huge gap up however was unable to sustain at higher levels and traded with a negative bias during the day. It closed down ~132 points. Inability to sustain at higher levels shows lack of strength and hence there is likely to further consolidation before any meaningful upside. On the upside 52250 – 52300 shall act as an immediate hurdle zone while 51100 – 51000 shall act as a crucial support zone.

The markets commenced the week on a strong note under the guidance of the Banking counters but swiftly erased their gains as a steep fall was witnessed in the Mid and Smallcap segments and at one point of time, the Index was down over 170 points; however, in the last session, recovery was seen from the lower levels which helped the Index to settle the trade at 24,781.10 with a loss of 72.95 points. Barring Auto, all the other sectors ended the day with a loss where Media and Metal were the major laggards.

After a pause of a day, Mid and Smallcaps extended their underperformance with a loss of 1.66% & 1.47% respectively. Bullish Divergence did not last for long as the Index formed a Dark Cloud Cover candlestick pattern on the daily chart indicating an upper hand of the Bears.

The range is shifted lower to 24,570-25,000 and a breakout on either side will open doors for another 250-300 points move.

The domestic market displayed considerable volatility, with key indices swinging between negative and positive terrain. PBOC has further reduced interest rates by 25 bps to support its struggling economy. Meanwhile, FIIs continued their strategic buying in China while selling off in India, driven by weaker corporate earnings and valuation concerns. Concurrently, domestic Q2 earnings have been mostly underwhelming, with major private sector banks notably disappointing. However, DIIs have offered some support, mitigating the market’s decline.

Indian rupee ended flat at 84.06 per dollar on Monday versus Friday's close of 84.07.

Indian equity indices ended on a weak note with Nifty below 24,800 on October 21.

At close, the Sensex was down 73.48 points or 0.09 percent at 81,151.27, and the Nifty was down 72.90 points or 0.29 percent at 24,781.10. About 1096 shares advanced, 2766 shares declined, and 135 shares unchanged.

Biggest Nifty losers were Tata Consumer Products, Kotak Mahindra Bank, BPCL, IndusInd Bank and Bajaj Finserv, while gainers included HDFC Bank, Bajaj Auto, Asian Paints, M&M and Eicher Motors.

Except auto, all other sectoral indices ended in the red with FMCG, metal, capital goods, power, realty, IT, oil & gas and media down 1-3 percent.

BSE Midcap and smallcap indices shed 1.5 percent each.

#1 Q2 revenue beat estimates led by growth in vertical & fx tailwinds

#2 Normalised profits missed estimates

#3 Order bookings were down YoY & management highlighted that demand environment remains unchanged

#4 While Q2 revenue beat was encouraging, still see its aspiration of 15 percent margin by FY27 as optimistic

#5 Valuation at 26x FY26 PE looks rich, raise FY25 by 4 percent

#1 Q2 PAT was 3 percent ahead of estimates aided by reversal of AIF related provisions

#2 NIM were flat QoQ with improvement in loan and liability mix

#3 Asset quality was better with net slippage contained at 0.7 percent

The Hyundai Motor India IPO, which launched on October 15, 2024, is highly anticipated due to the company’s strong market position in the Indian passenger vehicle segment. On 21st Oct, the company’s shares at pre-listing are trading at a grey market premium of Rs 75 which is 3.8% higher than its original price band. Meaning that, the shares might list at Rs 2035 on 22nd Oct.

Hyundai Motor India, is the second-largest automobile manufacturer in India, holding a 15% market share. Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand.

Hyundai’s leadership in India's passenger vehicle market, along with its strategic focus on electric vehicles makes a compelling investment for long-term investors.

#1 For Q2, profit was largely in-line with estimate, with higher other income

#2 NIM continues to underperform peers due to rise in COF & fall in share of unsecured loan

#3 Slippage rose from credit cards & MFI loans may slip in next 2 quarters

#4 Positives: deposit growth of 15 percent, and LDR of 87 percent

#5 Clarity on RBI embargo & NBFC circular is key

QIB –0.03 times

NII – 4.85 times

Retail – 2.4 times

Employee Reserved – 1.14 times

Overall – 2.23 times

The Sensex was up 136.07 points or 0.17 percent at 81,360.82, and the Nifty was down 6.70 points or 0.03 percent at 24,847.30. About 1051 shares advanced, 2445 shares declined, and 108 shares unchanged.

The company has signed a Memorandum of Understanding (MoU) with Perbadanan Kemajuan Pertanian Selangor (Selangor Agricultural Development Corporation), a government entity from the state of Selangor, Malaysia, for joint collaboration for the supply of frozen boneless buffalo meat and exploring other initiatives.

The company has executed a Share Purchase Agreement with Rcapital, Liam Marc Bevington, Kevin Andrew Mooney, and Paul Brian Young for the acquisition of 100 percent shareholding in Trac Precision Solutions.

Trac specializes in designing and manufacturing precision-engineered components for the aviation, defence, and power generation markets, with a presence in the United Kingdom.

The lender has increased its marginal cost of funds-based lending rate for tenure of more than six months by 5 basis points from 9 percent to 9.05 percent, effective October 19.

The company has signed a draft joint venture agreement with Madhya Pradesh State Mining Corporation (MPSMCL) for carrying out exploration and mining activities, including value addition projects in Madhya Pradesh. This agreement is subject to the approval of the respective Boards and the Government.

UltraTech Cement, Union Bank of India, Bajaj Housing Finance, 360 ONE WAM, Authum Investment & Infrastructure, Aurionpro Solutions, Bhansali Engineering Polymers, CG Power and Industrial Solutions, City Union Bank, Cyient DLM, Gravita India, HFCL, Jana Small Finance Bank, Mahindra Logistics, NELCO, Route Mobile, Solara Active Pharma Sciences, and Supreme Petrochem will release quarterly earnings on October 21.

The Board will consider fundraising via the issuance of equity shares or any other instruments on October 23. Additionally, the company's wholly owned step-down subsidiary, PathPartner Technology GmbH in Germany, has been voluntarily liquidated effective October 2.

QIB –0.00 times

NII – 3.50 times

Retail – 1.78 times

Employee Reserved – 0.87 times

Overall – 1.63 times

#1 Q2 consolidated revenue was below estimates with movies -44 percent QoQ & advertising -1 percent QoQ

#2 Q2 margin jumped to 16 percent and EBITDA came in 20 percent above estimate

#3 PAT was also ahead of estimate

#5 With miss in Q2 & softness in macro ad environment, cut FY25/27 revenue estimates 7 percent

#6 Retain our EBITDA/PAT forecasts

Mr. Kadakia has over two decades of experience, and joins Emkay Global Financial Services from Société Générale Securities India Private Limited, where he served as Managing Director and CEO turned Co-Head of the India Office.

#1 Q2 had in-line core operating profits & a slight beat on PAT with better visibility of earnings

#2 Core PpOP RoA of 2.7 percent marked second consecutive quarter with an improvement

#3 PpOP was 2 percent ahead of consensus & in line with estimate driven by lower operating expenses

#4 Provisions 10 percent lower than consensus, PAT beat street estimates by 10 percent, in-line with estimates

#5 This was the first quarter after merger with HDFC ltd with an RoA expansion to 1.9 percent

#1 Wires & cables margin was impacted due to higher competition in wires

#2 Demand is expected to further pick-up in H2

#3 H2 margin tend to be accretive vs H1 & management expects the same trend to continue

#4 EPC revenue contribution will remain elevated, pick-up in exports will aid in recouping margin

#1 Steady progress towards medium-term goals

#2 Q2 was a beat on most parameters

#3 Growth in communications was healthy

#4 Growth in enterprises vertical was healthy in the hi-tech, retail & banking vertical

#5 EBIT margin at 9.6 percent was ahead of consensus estimate of 9.2 percent

#1 Q2 net income was 2 percent below estimates on higher provisions and a marginal miss at core PpOP

#2 Asset quality showed strain with net slippages at 1.2 percent driven by pressures on cards & MFI

#3 CASA growth remains muted at 4 percent YoY with total deposit growth at 15 percent YoY

#4 Loan growth slowed down at margin with advances growth of 15 percent YoY

#1 Company delivered in-line Q2 results

#2 Softness continues in subscriber adds

#3 Softness in subscribers led to collections growth moderating to 5 percent YoY, key negative from Q2

#4 Collections growth is likely to range between 10-15 percent unless subscriber adds pick up

#5 Cut estimates by 4-12 percent

#6 Continued surge in subscriber churn despite multiple interventions by management has surprised negatively

The Bank of Tanzania has approved the sale of assets and liabilities of Canara Bank Tanzania to Exim Bank Tanzania, leading to the eventual winding up of Canara Bank Tanzania.

The company has signed a 5-year contract with an Indian entity of a Major International Company for the supply of traction motors to the European Market. The initial order worth Rs 18 crore has been received by the company for scheduled delivery in April 2025. The total business volume is expected to be around Rs 300 crore over the next 5 years.

The company has incorporated its step-down subsidiary, Wipro Life Science Solutions, LLC, in the US, effective October 10, to explore new business opportunities in the life sciences segment.

QIB –0.00 times

NII – 2.17 times

Retail – 1.30 times

Employee Reserved – 0.60 times

Overall – 1.11 times

The pharma company has received final approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Diltiazem Hydrochloride extended-release capsules USP in 120 mg, 180 mg, and 240 mg. These capsules are used for the treatment of hypertension.

#1 Organic business revenue growth was weak, at 5 percent, with volume decline in tea

#2 Growth businesses' organic growth was weaker, at 15 percent

#3 Non-branded/international continued to do well

#4 Market share over margins is the key focus

#5 Rural Is recovering gradually, and urban demand has softened

Jsquare Electrical Steel Nashik, a wholly owned subsidiary of JSW JFE Electrical Steel—a 50:50 joint venture between JSW Steel and JFE Steel Corporation—has entered into a share purchase agreement to acquire 100 percent stake in thyssenkrupp Electrical Steel India for Rs 4,051.4 crore.

The company has acquired 3 acres of land in Ahmedabad, which has a development potential of 0.9 million square feet of saleable area. This area comprises premium residential apartments with an estimated booking value of Rs 1,300 crore.

Waaree Energies' Rs 4,321-crore initial public offer (IPO) was off to a robust start on October 21, the first day of bidding, after the issue was subscribed 50 percent within just an hour of opening. The public offer drew bids for 1.08 crore shares as against 2.1 crore shares on offer, showed exchange data. READ MORE

The Board will meet on October 21 to consider fundraising via the issuance of equity shares, debentures, warrants, preference shares, or any other equity-linked securities.