Broader market tumbles; metal shares edge lower for fourth day

The domestic equity indices continued to trade with significant losses in mid-morning trade. The Nifty continued to trade below the 19,550 level. Metal shares recorded significant selling for fourth day in a row.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 161.45 points or 0.25% to 65,236.17. The Nifty 50 index lost 62.80 points or 0.32% to 19,479.85.

In the broader market, the S&P BSE Mid-Cap index fell 1.10% while the S&P BSE Small-Cap index slipped 2.20%.

The market breadth was weak. On the BSE, 853 shares rose, and 2759 shares fell. A total of 171 shares were unchanged.

As the earnings season intensifies, it will have a significant influence on the direction of the market. Investors will closely follow the financial performance of companies, which will provide insights into the overall health and outlook of various sectors. Additionally, global cues and developments in international markets will also impact the market trend.

Buzzing Index:

The Nifty Metal index slipped 1.88% to 6,586.25. The index has declined 4.57% in four sessions.

Welspun Corp (down 4.03%), Hindustan Copper (down 4.03%), APL Apollo Tubes (down 3.46%), Steel Authority of India (down 2.65%) and NMDC (down 2.56%) were the top losers.

Among the other losers were Adani Enterprises (down 2.33%), Jindal Stainless (down 2.15%), Jindal Steel & Power (down 1.76%), Hindustan Zinc (down 1.65%) and National Aluminium Company (down 1.64%).

Stocks in Spotlight:

One 97 Communications (Paytm) declined 3.26%. Paytm has reported a consolidated net loss of Rs 291.7 crore in Q2 FY24 as against a net loss of Rs 571.5 crore posted in Q2 FY23. Revenue from operations jumped 31.59% to Rs 2,518.6 crore in the quarter ended 30 September 2023 from Rs 1,914crore recorded in the same period last year.

CreditAccess Grameen rallied 8.87%. The company`s standalone net profit surged 99.38% to Rs 349.21 crore in Q2 FY24 as compared with Rs 175.15 crore in Q2 FY23. Total income jumped 53.21% to Rs 1,247.59 crore in Q2 FY24 as compared with Rs 814.31 crore in corresponding quarter last year. Net interest income rose 49.6% to Rs 772.0 crore in Q2 FY24 from Rs 516.2 crore in Q2 FY23.

Dodla Dairy rose 4.86%. The company`s consolidated net profit rose 10.5% to Rs 43.60 crore on 10.4% increase in net sales to Rs 767.75 crore in Q2 September 2023 over Q2 September 2022.

Amber Enterprises India tumbled 6.72%. The company reported net loss of Rs 6.94 crore in Q2 FY24 as compared with Rs 2.98 crore in Q2 FY23. Revenue from operations jumped 23.54% YoY to Rs 927.06 crore in Q2 FY23.

Global markets:

Asian stocks fell for a fourth day today after a selloff in US markets deepened Friday. Traders closely monitored the geopolitical situation in the Middle East.

Although there have been some positive developments, like two American hostages being released and aid being delivered to Gaza, there is still a risk of more conflict between Israel and Hamas, and there`s concern that it could spread to involve other countries in the region.

On Friday, the US markets experienced significant declines, with the 10-year US treasury yield reaching its highest level since 2007. The S&P 500, Dow, and Nasdaq all experienced losses of varying degrees. Investors will be closely watching upcoming earnings reports and economic data releases. These factors are expected to have a significant impact on how the market moves in the future.

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