Benchmark trade with minor gains; auto stocks in demand

The equity indices continued to trade with significant gains in early afternoon trade. The Nifty traded near the 19,250 mark. Auto shares extended gains for second consecutive trading session.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 352.64 points or 0.55% to 64,433.54. The Nifty 50 index added 113.65 points or 0.59% to 19,246.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.76% while the S&P BSE Small-Cap index gained 1.03%.

The market breadth was strong. On the BSE, 2,422 shares rose and 1,132 shares fell. A total of 131 shares were unchanged.

Economy:

The S&P Global India services Purchasing Managers` Index (PMI) declined to 58.4 in October as compared to 61 in September, signaling the slowest rate of expansion since March. Still, the headline figure remained well above the 50-mark separating growth from contraction for the 27th straight month.

Anecdotal evidence indicated that growth was underpinned by the securing of new work, favourable demand trends and positive market conditions. Competitive pressures and inflationary forces restricted the increase, according to surveyed firms.

Meanwhile, the S&P Global India Composite PMI Output Index fell from 61 in September to 58.4 in October, indicating the weakest rate of expansion since March.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 2.50% to 10.80. The Nifty 30 November 2023 futures were trading at 19,322.05, at a premium of 75.15 points as compared with the spot at 19,246.90.

The Nifty option chain for the 30 November 2023 expiry showed maximum Call OI of 29.8 lakh contracts at the 20,000 strike price. Maximum Put OI of 49.5 lakh contracts were seen at 19,000 strike price.

Buzzing Index:

The Nifty Auto index gained 0.85% to 16,084.35. The index added 1.57% in two trading sessions.

Eicher Motors (up 2.38%), Tata Motors (up 2.22%), Tube Investments of India (up 2.12%), TVS Motor Company (up 1.59%), Hero MotoCorp (up 1.53%), MRF (up 0.79%), Bajaj Auto (up 0.62%), Sona BLW Precision Forgings (up 0.54%), Bosch (up 0.29%) and Balkrishna Industries (up 0.21%) advanced.

Tata Motors advanced 2.22% after the auto major reported a consolidated net profit of Rs 3,764 crore in Q2 FY24 as against a net loss of Rs 944.61 crore recorded in Q2 FY23. Total revenue from operations stood at Rs 1,05,128.24 crore in the quarter ended 30 September 2023, rising 32.05% YoY. Tata Motors said that it continued strong performance in Q2 FY24 as all auto verticals continued their profitable growth trajectory.

Stocks in Spotlight:

Indian Energy Exchange (IEX) rose 0.95% after the company�s consolidated net profit jumped 21.43% to Rs 86.46 crore on 14.01% increase in revenue from operations to Rs 108.53 crore in Q2 FY24 over Q2 FY23.

Container Corporation of India`s (CONCOR) rallied 3.20% after the company`s consolidated net profit jumped 21.1% to Rs 367.36 crore in Q2 FY24 from Rs 303.47 crore in Q2 FY23. Revenue from operations grew 10.5% year on year (YoY) to Rs 2,194.87 crore during the period under review.

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