Closing Bell: Nifty below 24,350, Sensex down 427 pts; FMCG, media outshine

Indian equity indices ended on a negative note on October 30 with Nifty below 24,350. At close, the Sensex was down 426.85 points or 0.53 percent at 79,942.18, and the Nifty was down 126 points or 0.51 percent at 24,340.80.

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.

Markets experienced volatility and ended down nearly half a percent amid mixed signals. Following an initial dip, the Nifty moved within a range, ultimately closing near the lower end. Most sectors, except FMCG, declined, with banking, pharma, and IT leading the losses. However, broader indices showed resilience, with the small-cap index gaining over a percent.

Nifty has struggled to surpass the 24,500 resistance level for the past three sessions due to mixed trends among heavyweights. We continue to recommend focusing on leading stocks in banking and IT for a decisive break above this level; otherwise, consolidation is likely to persist. In the meantime, traders should maintain a hedged approach and prioritize selective stock picking.

Markets snapped 2-day gaining streak and ended in the red today. Both Nifty and Sensex lost 0.5% each. Smallcaps and midcaps indices outperformed the Nifty 50, gaining 1% and 0.13% respectively. Meanwhile, the India VIX gained ~7% indicating increased volatile in the markets.

On the sectoral front, all sectors closed in the red except Nifty Media and Nifty FMCG. Weak corporate earnings has soured investors' sentiment amid festive season. With Nifty monthly expiry tomorrow, 24,000 is an important level to watch on the downside. Our data analysis over the past 10 years shows that markets have closed in the red only 3 times during the Muhurat trading session. This indicates some likely festive cheer in coming trading sessions.

The domestic market remains cautious due to aggressive selling by FIIs. Positively, strong domestic inflows are supporting market resilience though volatility has markedly increased.

Other EMs are also consolidating in anticipation of upcoming US economic data releases, elections, and the FOMC interest rate decision. Considering the weak Q2 domestic earnings and muted commentary, India's premium valuations are moderating.

Indian equities started the session on a tepid note at 24,370; however, broader markets led the up-move helping the Index to recover from the lower levels but higher levels did not last long and erased all its gains in the last session to settle the trade lower at 24,340.85 with a loss of 126 points.

Among the sectors, Media was the top gainer followed by FMCG whereas BankNifty and Pharma corrected the most. Mid and Smallcaps managed to hold their early gains and outperformed the Frontline Index.

Nifty50 oscillates in a broad range where the higher side is capped at 24,480 while the support level is shifted higher at 24,200 forming an Ascending Triangle pattern.

A strong move above the resistance level of 24,480 will result in a pattern breakout and in that case, the approximate target comes to 24,880; on the flip side, a break below the support level will drag the Index lower to the psychological support of 24,000.

Indian rupee ended flat at 84.08 per dollar on Wednesday versus Tuesday's close of 84.07.

Indian equity indices ended on a negative note on October 30 with Nifty at 24,350.

At close, the Sensex was down 426.85 points or 0.53 percent at 79,942.18, and the Nifty was down 126 points or 0.51 percent at 24,340.80. About 2787 shares advanced, 978 shares declined, and 79 shares unchanged.

Top losers on the Nifty included Cipla, Shriram Finance, HDFC Life, Trent, SBI Life Insurance, while gainers were Adani Enterprises, Tata Consumer, Hero MotoCorp, Britannia Industries and Maruti Suzuki.

On the sectoral front, FMCG, capital goods and media up 0.5-2 percent, while bank, pharma, IT down 1 percent each.

The BSE Midcap index ended flat and the smallcap index rose 1.5 percent.

#1 Q2 PAT was well below our estimate due to higher opex

#2 Receivables growth was healthy at 23 percent, YoY

#3 NIM disappointed, but should inch up in H2 due to easing short term rates

#4 Opex rose 11 percent QoQ due to pre-festive expenses

#5 GNPA & net slippages rose QoQ

#6 Credit costs rose 50 bps QoQ as expected, can stay elevated near term

#7 Cut FY25-27E EPS by 4-8 percent

#1 Q2 in-line with India volume growth at 5 percent, led by rural

#2 With inflation coming back, Marico to see revenue growth accelerating to D/D ahead, see some impact on margins as well

#3 Management outlook on growth appeared to be positive for coming quarters as well as medium-term

#1 Delivered strong performance for India business, Africa core performance healthy

#2 Net debt increased modestly, capex moderated

#3 Bharti seems best-placed to benefit from rising ARPUs

Indian Rupee hit a fresh record low today on weak domestic markets and a slight recovery in crude oil prices. month end Dollar demand from importers also weighed on the Rupee. However, softening of US Dollar prevented a sharp fall. US Dollar declined on disappointing jobs data from the US. US JOLTs openings data showed openings fell to 7.443 million jobs in September vs forecast of 8 million jobs.

We expect Rupee to trade with a mixed to negative bias on weak domestic markets and sustained FII outflows. Month-end Dollar demand from importers may further weigh on the Rupee. However, softening of US Dollar amid disappointing jobs markets may support the Rupee at lower levels.

Traders may watch out for Q3 2024 GDP data and non-farm payrolls report from the US this week. USDINR spot price is expected to trade in a range of Rs 83.90 to Rs 84.30.

#1 Believe margin disappointment was largely due to inferior mix

#2 Margin disappointment led by sluggish exports demand from non-honeywell entities

#3 However, continue to expect a margin recovery in H2FY25

#4 Stock currently trades at 54x/ 44x FY26/ FY27 EPS

#1 Net profit Q2 at Rs1,015 cr vs Rs715.6 cr (YoY)

#2 Revenue up 35.7% at Rs10,322 cr vs Rs7,607.2 cr (YoY)

#1 Net profit at Rs52.8 cr vs Rs59.3 cr (YoY)

#2 Revenue up 2.9% at Rs751 cr vs Rs729.5 cr (YoY)

#3 EBITDA down 9.3% at Rs73.4 cr vs Rs81 cr (YoY)

#4 Margin at 9.7% vs 11% (YoY)

#1 Profit falls 7.8 percent to Rs 95.8 crore Vs Rs 103.9 crore, YoY

#2 Revenue declines 4.8 percent to Rs 2,448.8 crore Vs Rs 2,570.9 crore, YoY

#1 Profit grows 13.9 percent to Rs 8.8 crore Vs Rs 7.7 crore, YoY

#2 Revenue increases 2.6 percent to Rs 134.6 crore Vs Rs 131.2 crore, YoY

#3 Board approves stock split in 1:2 ratio

#4 Board approves 1:1 bonus issue

#1 In-line quarter but weak narrative

#2 Management retained guidance for FY25 EBITDA margin at 24.5-25.5 percent

#3 Management says, seasonal weakness in prescription & trade generic segments

#4 Management says, saw strong growth in consumer health

#5 North America Generics sales declined QoQ due to Lanreotide supply constraints

#6 North America Generics sales likely to decline further in Q3 with recovery in Q4

#7 Strong growth in both tender and private market in South Africa business

#8 Management expects the sustainable growth rate for the EM & Europe business at ~10 percent

Datawrkz, a subsidiary of Nazara Technologies has acquired a 100% stake in Space & Time, an independent growth marketing agency with offices across the UK for approximately GBP 4.8 million (~Rs 52.3 crores) in cash and stock.

#1 Q2: in-line with pre-quarterly update; demand improves

#2 No impact from weakness in urban as it caters to premium and mass

#3 Sharp price hikes improve growth outlook

#4 Parachute — 10 percent price hike from H2 + mid-single volume growth + share gain

#5 Saffola oils — 15 percent price hike from H2 + minimal volume backlash

#6 Foods, premium personal care, digital brands – show healthy growth trajectory

#7 VAHO – another weak quarter but has bottomed out

#1 The number of users using more than one service on the Swiggy app has doubled since launch.

#2 We have expanded our average size of the stores which has helped us in improving the SKUs.

#3 There is nothing to comment on our plans in the fintech space

#4 Quick commerce will become larger than our food delivery business going ahead.

#1 Mobile ARPU to increase, home broadband subsription to surge

#2 Capex intensity to decline, FCF and ROIC to improve

#3 In Q2, India EBITDA is up 19 percent YoY

#1 Q2FY25: muted new card issuance, low share of earnings assets, NIM contraction, high credit costs impacted earnings

#2 No clear guidance on a recovery in asset quality

#3 Timing of an earnings recovery remains difficult to predict

#4 Cut FY25 estimate EPS by 25 percent on high credit costs

The Sensex was down 62.01 points or 0.08 percent at 80,307.02, and the Nifty was down 6.80 points or 0.03 percent at 24,460.

#1 Profit zooms 162.2 percent to Rs 28.1 crore Vs Rs 10.7 crore, YoY

#2 Revenue jumps 18.2 percent to Rs 771.3 crore Vs Rs 652.3 crore, YoY

The company expanded its Raipur facility’s capacity from 100,000 metric tons per annum (MTPA) to 200,000 MTPA. With this addition, the company’s cumulative pipe manufacturing capacity has now reached ~686,000 MTPA.

Gold rose to a record on Wednesday on haven demand ahead of the US election, and as traders waited for economic data that may give clues on the Federal Reserve’s rate path.

#1 Q2 margin were weak due to weak demand environment & high discounting

#2 Q3 is likely to be worse

#3 Expect business to normalize in FY26 on improvement in demand & new product launches

#4 Valuations look reasonable as well; hybrid tax cut is upside risk

#1 Profit increases 7.7 percent to Rs 70.1 crore Vs Rs 65.1 crore, YoY

#2 Revenue jumps 22.1 percent to Rs 788.5 crore Vs Rs 645.7 crore, YoY

#3 Board appoints Abhishek Chaudhary as Chief Executive Officer of the company, effective November 4

#4 Board approves acquisition of additional 9.99 percent equity stake in Welspun Michigan, from Patel Engineering

#1 Profit increases 8.4 percent to Rs 154.8 crore Vs Rs 142.8 crore, YoY

#2 Revenue falls 1.6 percent to Rs 792.8 crore Vs Rs 806.1 crore, YoY

#3 Other income rises to Rs 17.44 crore Vs Rs 10.56 crore, YoY

#4 Tax expenses drop to Rs 41.5 crore Vs Rs 48.62 crore, YoY

Insolation Energy awarded single largest contract value of Rs 500.50 crore by Rajasthan Renewable Energy Corporation Ltd (RREC) for Design, Supply, Erection, Testing and Commissioning including comprehensive Operation and Maintenance (O&M) for 25 (Twenty-Five) years from the date of commissioning of Rooftop Solar (RTS) photovoltaic power Projects on State Government buildings/State Government undertakings buildings in Rajasthan under Hybrid Annuity Mode (HAM) for Ajmer, Jaipur and Kota Circle/Districts.

Genesys International announced a groundbreaking partnership with SatSure, a leading Indian company in satellite remote sensing funded by the Indian Private sector banks.

The Power Transmission & Distribution (PT&D) vertical of Larsen & Toubro has won new orders in the Middle East and Africa for expanding and strengthening the electricity grids at high-voltage levels. The orders include implementation of an Energy Management System for country-wide electricity network.

Larsen & Toubro, Tata Power, Dabur India, Biocon, Aditya Birla Capital, 3i Infotech, Aeroflex Industries, AGS Transact Technologies, AIA Engineering, Automotive Axles, DCM Shriram, Grindwell Norton, IRB Infrastructure Developers, KRN Heat Exchanger and Refrigeration, The New India Assurance Company, Paisalo Digital, Procter & Gamble Hygiene & Health Care, Protean eGov Technologies, Prudent Corporate Advisory Services, Sterlite Technologies, and TTK Prestige will announce their September quarter earnings on October 30.

#1 Profit falls 8.2 percent to Rs 18.8 crore Vs Rs 20.5 crore, YoY

#2 Revenue grows 14 percent to Rs 190.2 crore Vs Rs 166.8 crore, YoY

Shares of Garden Reach Shipbuilders and Engineers rose over 4 percent after the company secured an order worth Rs 491 crore to design an Acoustic Research Ship for the Defence Research and Development Organisation (DRDO). On October 29, Graden Reach announced that it received a Letter of Intent from the Naval Physical and Oceanographic Laboratory (NPOL), part of the Ministry of Defence in Kochi. READ MORE

Shares of Honeywell Automation dropped as much as 8 percent on October 30 after the company reported a decline in its Q2 net profit amid sluggish demand. The engineering firm reported a 5.6 percent decline in its September quarter net profit to Rs 115 crore ($13.7 million), down from Rs 122 crore in the same period last year, primarily impacted by slowing demand. READ MORE

Indian markets are may be around 10 percent overvalued with limited room for multiples to re-rate further, said Prashant Jain, founder and chief investment officer at 3P Investment Managers in a conversation with Moneycontrol. "Over the time, market returns should be equal to earnings growth rate of 12-13 percent CAGR as India is currently a lower inflation country and there is little scope for margins to improve in any sector," Jain said. READ MORE

The Board has given its approval for the company to acquire a 91 percent stake in Tikona Infinet from the existing shareholders for Rs 669.04 crore.

The amount will be paid via a cash payout of Rs 374.85 crore and a share swap of Rs 294.19 crore. Tikona provides wireless broadband services for home and enterprise customers in India.

The company has received approval from the Competition Commission of India (CCI) for the acquisition of the entire stake held by the International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC, and Resurgence PE Investments in Agilus Diagnostics.

Agilus is a material subsidiary of the company.

#1 Profit declines 3.5 percent to Rs 292.9 crore Vs Rs 303.5 crore, YoY

#2 Revenue rises 12 percent to Rs 24,895.6 crore Vs Rs 22,220.2 crore, YoY

Shares of SBI Cards and Payment Services declined over 3 percent to Rs 664 per share on October 30 after brokerages were disappointed with its dismal July-September (Q2FY25) quarter performance. Majority of them reduced their outlook on the counter, slashing target prices, seeing difficult remainder of the year.

Nomura shared a 'reduce' rating on SBI Cards and shared target price of Rs 625 apiece, seeing further another 6 percent downside. The firm expects FY25 to be a washout year for SBI Cards, with potential policy rate cut being the only way to improve profitability. They see second-quarter as an operationally weak quarter with card additions at multi-year lows. Read More