Closing Bell: Sensex down 553 pts, Nifty around 24,200; IT top drag

Indian benchmark indices ended lower for the second consecutive session on October 31 with Nifty below 24250. At close, the Sensex was down 553.12 points or 0.69 percent at 79,389.06, and the Nifty was down 135.50 points or 0.56 percent at 24,205.30.

We wrap up today's edition of the Moneycontrol live market blog and will be back tomorrow evening with ‘Muhurat Trading’ session on the occasion of Diwali with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Markets traded under pressure on monthly expiry day, slipping nearly half a percent. Early weakness in IT majors weighed on sentiment, with other sectors joining the decline later in the session. However, resilience in select heavyweight stocks helped limit the overall losses. Nifty ultimately closed at 24,205, down 0.56%. Most sectors saw losses, with IT and FMCG leading the decline. Broader indices showed mixed performance, as midcaps edged lower while smallcaps gained over a percent.

While IT had previously shown resilience, holding hope for a recovery, today’s decline in major IT stocks has dampened the outlook for a strong rebound.

Current indications point to a possible retest of the prior swing low near the 24,000 level. Despite the negativity in the benchmark indices, there are notable opportunities on both sides in certain sectors. Traders should adjust their strategies, accordingly, emphasizing risk management.

The Nifty index remained volatile before closing on a negative note. On the hourly chart, it encountered resistance around the 50 EMA, leading to a pullback toward 24,200. Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure.

On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750.

The key benchmark indices traded with mild cuts while experiencing a broader sell-off in the technology sector due to weakness in the US IT companies, which has led the domestic IT companies to come under the shadow of underperformance. Investors remain cautious owing to weak domestic earnings for Q2.

However, the market expects the momentum to reverse in H2 due to a rebound in core sector data and government spending, which are likely to influence the Samvat 2081 investment strategy.

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

Indian benchmark indices ended lower for the second consecutive session on October 31 with Nifty around 24200.

At close, the Sensex was down 553.12 points or 0.69 percent at 79,389.06, and the Nifty was down 135.50 points or 0.56 percent at 24,205.30. About 2559 shares advanced, 1188 shares declined, and 108 shares unchanged.

Biggest Nifty losers included Tech Mahindra, HCL Technologies, Infosys, TCS, Wipro, while gainers were Cipla, L&T, Dr Reddy's Labs, Hero Motocorp and ONGC.

Among sectors, IT index sheds nearly 3 percent, FMCG index down nearly 1 percent, and bank index down 0.5 percent. However, pharma and media indices rose 1.5 percent each.

The BSE midcap index shed 0.3 percent, while smallcap index rose 1.6 percent.

The Sensex was down 579.68 points or 0.73 percent at 79,362.50, and the Nifty was down 152.30 points or 0.63 percent at 24,188.50.

#1 Surprise Q2, strength of business model

#2 Showed a third consecutive quarter of E&C margin expansion

#3 Surprise across inflows, execution & working on a lofty base

#4 Think infra segment margin expansion of 60 Bps should surprise market

#5 Key positive in Q2 was a big beat to order inflows, despite being a soft India quarter

#6 Robust E&C execution, up 27 percent YoY

#7 Company remains confident in its FY25 inflow guidance

#1 Q2FY25 sales/EBITDA grew 4-8 percent YoY respectively, but below estimate

#2 Q2FY25 sales/EBITDA growth largely driven by weakness in generics segment

#3 Biologics segment saw healthy growth of 19 percent YoY

#4 Margins surprised negatively due to lower gross margins & operating deleverage

#5 Believe Biocon earnings trajectory will improve

#1 Operationally generation, T&D & green were in-line with MSe

#2 Third-party solar EPC execution set to increase

#3 Management plans to commission captive generation of 5GW RE by F26

Narayana Hrudayalaya, Tata Investment Corporation, BF Investment, BF Utilities, Last Mile Enterprises, Sonalis Consumer Products, and Sudarshan Pharma Industries will release quarterly earnings on October 31.

#1 Strong FY25 Q2 profit growth led by margin normalisation in the projects business

#2 Voltas delivering on its volume-growth strategy with market share gains, and product expansion

#1 Beats consensus; offers favourable risk-reward

#2 FY25 order inflow growth guidance looks achievable post Q2 surprise

#3 Order inflow beat estimate by 43 percent

#4 Core margin stood at 7.6 percent in H1FY25, +20 bps YoY

#5 Management retained its core EBITDA margin guidance, which is conservative

Ashoka Buildcon to acquire, 100% of investments of Investors in ACL comprising of 3,40,000 equity shares of Rs 10 each, fully paid-up, comprising 34 percent equity share capital of Ashoka Concessions and 77,41,250 Class A Compulsorily Convertible Debentures (CCDs) & 2,00,00,000 Class B Compulsorily Convertible Debentures (ACL Securities) at an aggregate consideration of Rs 1,526 crore.

Viva Highways Ltd., a subsidiary of the company to acquire investments of Investors i.e. 7,46,20,000 equity shares comprising 26 percent equity share holding of its affiliate viz. Jaora Nayagaon Toll Road Company Private Limited, at an aggregate consideration of Rs 150 crore.

The company has contracted to sell its 2005 built Medium Range Product Tanker, Jag Padma of about 47,999 dwt on October 31, 2024 to an unaffiliated third party. The vessel will be delivered to the new buyer by Q3 FY25.

Shilpa Medicare Limited, Unit VI, Dabaspet, Bengaluru, India was inspected by USFDA on 24, 25 and 28, 29, 30 October 2024. The inspection was the onsite GMP inspection of this site.

The inspection concluded with the issuance of Form 483 with four observations. All observations are procedural in nature. The company shall respond to the observations within the time frame.

This Unit of Shilpa Medicare Ltd. is engaged in the manufacturing, testing and release of Oral Mouth Dissolving Films and Transdermal Systems.

The board of directors of the company at their meeting held on October 31, 2024, approved the public issue of secured, rated, listed, redeemable non-convertible debentures, with the shelf limit of upto Rs 2,500 crore, in one or more tranches.

The Sensex was down 427.38 points or 0.53 percent at 79,514.80, and the Nifty was down 106.40 points or 0.44 percent at 24,234.40.

Anish T Mathew has resigned as Chief Financial Officer of the company due to personal reasons, effective October 30.

#1 Miss on sales and profitability

#2 India business decline led by beverages, modern channel salience 24 percent

#3 Strong gross margins, weak operating margins due to operating deleverage

#4 Cut FY25-27 earnings estimate by 7 percent-8 percent

#1 There was scepticism on orders, rev, core margin, & net working cap, all came positive

#2 H1 core orders of Rs 1.17 lakh crore are a positive given weak government spending

Shares of Mastek rose as much as 2 percent to Rs 2,893 in the morning trade on October 31 after Macquarie maintained an 'outperform' rating and raised the target price of the counter following the company's second quarter earnings. With a price target of Rs 3,320, implying an upside potential of 17.3 percent from the last closing price of Rs 2,830 on the National Stock Exchange. Mastek shares have gained just over a percent since the start of the year. READ MORE

The Nifty IT index dropped nearly 3 percent on October 31 after US big tech stocks underperformed in their earnings reports. Meta Platforms announced weaker-than-expected user numbers in its third-quarter results, while Microsoft's revenue growth guidance fell short of expectations. Overnight, the US information technology sector was the largest decliner, falling 1.3 percent. READ MORE

The technology services and consulting company announced a strategic collaboration with Microsoft and SAP to help clients significantly improve the speed and effectiveness of RISE with SAP migrations on the Microsoft Cloud.

Adani Power has signed a power supply agreement for the supply of 1,496 MW (net) for 25 years with the Maharashtra State Electricity Distribution Company.

The private super specialty hospital has entered into a strategic collaboration agreement for the acquisition of a 60 percent stake in a 400-bedded hospital in Faridabad, Haryana. Under the terms of the agreement, Yatharth Hospitals will acquire a 60 percent stake in MGS Infotech Research & Solutions for Rs 91.20 crore.

#1 USFDA classified company’s Goa’s facility as VAI paving way for generic Abraxane approval

#2 Abraxane a key product from company’s Goa’s facility

#3 Development once again improves pipeline visibility

#1 Another quarter of strong execution & stellar working capital position

#2 Order inflow declined given the high base last year, management retained guidance

#3 Execution & working capital make up for margin & order inflow

#1 Profit falls 20.2 percent to Rs 36 crore Vs Rs 45.1 crore

#2 Revenue declines 15.4 percent to Rs 494.7 crore Vs Rs 584.4 crore

#3 EBITDA drops 22.6 percent to Rs 51.1 crore Vs Rs 66 crore

#4 Margin slips 100 bps to 10.3 percent Vs 11.3 percent

Narayana Hrudayalaya, Tata Investment Corporation, BF Investment, BF Utilities, Last Mile Enterprises, Sonalis Consumer Products, and Sudarshan Pharma Industries will release quarterly earnings on October 31.

#1 Profit increases 5.8 percent to Rs 926.5 crore Vs Rs 875.5 crore

#2 Revenue falls 0.3 percent to Rs 15,697.7 crore Vs Rs 15,738 crore

#3 EBITDA jumps 21.1 percent to Rs 3,745 crore Vs Rs 3,091 crore

#4 Margin expands 430 bps to 23.9 percent Vs 19.6 percent