INDICES SNAP 3-DAY LOSSES, NIFTY ENDS ABOVE 24850; PRIVATE BANKS CLIMB

Domestic equity benchmarks rebounded on Friday, snapping a three-day losing streak. Banks and metals led the gains, while IT and FMCG lagged. Despite the broader market`s underperformance, positive bank results boosted investor sentiment, hinting at a promising earnings season.

The S&P BSE Sensex rose 218.14 points or 0.27% to 81,224.75. The Nifty 50 index added 104.20 points or 0.42% to 24,854.05. The 50-unit index fell 1.50% in the past three sessions.

Axis Bank (up 5.57%), ICICI Bank (up 2.49%) and Tata Motors (up 2.06%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.21% and the S&P BSE Small-Cap index declined 0.16%.

The market breadth was negative. On the BSE, 1923 shares rose and 2014 shares fell. A total of 106 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 2.61% to 13.04.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.15% to 6.906 compared with previous close 6.896.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0725, compared with its close of 84.06 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.59% to Rs 77,562.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.17% to 103.65.

The United States 10-year bond yield shed 0.03% to 4.095.

In the commodities market, Brent crude for November 2024 settlement lost 45 cents or 0.60% to $74 a barrel.

Global Markets:

Most European shares traded higher on Friday as investors digested the European Central Bank`s consecutive interest rate cuts and awaited new economic data and earnings reports. In the U.K., retail sales increased by 0.3% in September, according to data from the Office for National Statistics, marking the highest level since July 2022.

Asian stocks ended higher on Friday, as traders assessed key economic data from China and Japan�s inflation numbers.

Chinese GDP grew 4.6% year-on-year in the three months to September 30, but slowing from the 4.7% seen in the prior quarter. GDP grew 0.9% quarter-on-quarter, slightly missing expectations of 1%. This brought year-to-date GDP growth to 4.8%, still below Beijing�s 5% annual target.

Separate data on Friday showed China�s industrial production and retail sales both grew more than expected in September, while the country�s unemployment rate fell to 5.1% against expectations it would remain at 5.3%. Meanwhile, China�s house prices fell 5.8% year-over-year in September, a larger drop than 5.3% in August.

Japan`s Core CPI, which excludes volatile fresh food items, grew 2.4% year-on-year in September, government data showed on Friday. The reading eased from the 2.8%- a 10-month high- seen in the prior month. A core reading that excludes both fresh food and energy prices, and is watched closely by the Bank of Japan as a gauge of underlying inflation, rose to 2.1% in September from 2% in the prior month. Headline CPI inflation fell to 2.5% from 3% in the prior month.

In the US market, the Dow Jones Industrial Average rallied to a new record close after strong economic data eased lingering fears of a potential recession. The blue-chip index rose 0.37% to 43,239.05, helped by a 9% gain for Travelers on the back of strong quarterly results. The Nasdaq Composite inched higher on Thursday after getting a boost from semiconductor names, and ultimately added 0.04%. The S&P 500 closed down 0.02%.

The technology sector, particularly chip stocks, led the market`s rally, with companies like Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) posting significant gains. Positive US retail sales figures and lower-than-expected jobless claims further supported market sentiment.

September�s US retail sales figures showed that consumer spending was still robust, with monthly spending rising 0.4%. Sales excluding autos shot up 0.5%, much hotter than the 0.1% forecast. Jobless claims in the US for the week that ended Oct. 12 were also lower than expected.

Stocks in Spotlight:

Mahanagar Gas (down 10.09%), Indraprastha Gas (down 10.25%) slumped following the government`s decision to reduce domestic gas allocation to city gas distributors by 20%. The government`s move is expected to force city gas distribution companies, which supply CNG for vehicles, to increase their reliance on more expensive imported gas. This will likely put pressure on their profitability and potentially lead to higher CNG prices for consumers.

Manappuram Finance slumped 13.50%, following regulatory restrictions imposed by the Reserve Bank of India (RBI) on its subsidiary, Asirvad Micro Finance. On Thursday, the RBI announced that it has prohibited four non-banking financial companies (NBFCs), including Asirvad Micro Finance, from sanctioning or disbursing loans, effective from October 21, 2024.

Mazagon Dock Shipbuilders surged 6.86% as the company said its board will consider stock split and interim dividend in its meeting on 22 October 2024.

Zee Entertainment Enterprises (ZEEL) rallied 5.29% after the company�s consolidated net profit from continuing operations jumped 61.28% to Rs 209.5 crore in Q2 FY25 from Rs 129.9 crore reported in Q2 FY24. However, total income declined 18.94% to Rs 2,034.4 crore in Q2 FY25 as compared with Rs 2,509.6 crore recorded in Q2 FY24.

Axis Bank rallied 5.57% after the private lender reported 17.97% rise in standalone net profit to Rs 6,917.57 crore on 17.31% increase in total income to Rs 37,141.71 crore in Q2 FY25 over Q2 FY24.

Reliance Industries rose 0.15% The company said that its wholly owned subsidiary, Reliance Brands Holding UK and Mothercare plc will form a joint venture that will own the Mothercare brand and its intellectual property assets related to the regions of India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

Wipro rallied 3.76% after the IT major recorded decent earnings for the second quarter of FY25 and announced a 1:1 bonus issue. The IT major`s consolidated net profit grew 6.85% to Rs 3,208.8 crore in Q2 FY25 as against Rs 3,003.2 crore recorded in Q1 FY25. Revenue from operations increased 1.54% to Rs 22,301.6 crore in the September 2024 quarter as against Rs 21,963.8 crore reported in the preceding quarter same year.

Infosys dropped 4.60%. The IT major reported 2.2% rise in consolidated net profit to Rs 6,506 crore on a 4.25% increase in revenues to Rs 40,986 crore in Q2 FY25 over Q1 FY25. On a year on year basis, the company`s net profit and revenues are higher by 4.7% and 5.1%, respectively as compared with Q2 FY24. During Q2 FY25, constant currency (CC) revenue grew by 3.3% YoY and 3.1% QoQ. In dollar terms, the IT firm reported revenues of $4,894 million, up 3.7% QoQ and 3.8% YoY for the quarter ended 30 September 2023. The total contract value (TCV) of large deal wins was $2.4 billion in Q2 of FY25, with net new of 41%.

LTIMindtree tumbled 6.27%. The company�s consolidated net profit jumped 10.3% to Rs 1,251.6 crore in Q2 FY25 compared with Rs 1,135.1 crore in Q1 FY25. Revenue from operations increased 2.8% QoQ to Rs 1,126.6 crore during the quarter.

CEAT advanced 2.13% after the tyres manufacturing company�s consolidated net profit fell 41.4% to Rs 121.88 crore in Q2 FY25 as compared to Rs 208 crore posted in Q2 FY24. Revenue from operations increased 8.22% year on year (YoY) to Rs 3,304.53 crore in the quarter ended 30 September 2024.

Tata Chemicals rose 1.33%. The chemical maker�s consolidated net profit from continuing operations declined 46.06% to Rs 267 crore in Q2 FY25 as compared to Rs 495 crore posted in Q2 FY24. The company�s revenue from operations rose marginally to Rs 3,999 crore in Q2 FY25 as against to Rs 3,998 crore recorded in Q2 FY24.

5paisa Capital tumbled 6.90%. The stockbroking company�s consolidated net profit jumped 15.02% to Rs 21.90 crore in Q2 FY25 from Rs 19.04 crore reported in Q2 FY24. The company�s total income rose 4.02% year on year (YoY) to Rs 100.85 crore in the quarter ended 30 September 2024.

Tanla Platforms declined 3.88% after the company`s consolidated net profit declined 8.65% to Rs 130.21 crore on 0.78% fell in net sales to Rs 1,000.72 crore in Q2 FY25 over Q2 FY24.

Zydus Lifesciences rose 0.07%. The pharma major announced that it has received final approval from the United States Food and Drug Administration (USFDA) to manufacture Fludrocortisone Acetate tablets USP, 0.1 mg.

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