Key indices come off the day`s low; European markets edge higher

The key equity indices managed to come off the day`s low in afternoon trade. Investors found solace in the U.S. Federal Reserve`s decision to maintain its benchmark interest rate unaltered. The Nifty hovered near the 19,100 level. European markets opened in the green while their Asian peers mostly advanced on Thursday. Trading could remain volatile on the domestic bourses on account of weekly index options expiry on the NSE.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 352.01 points or 0.55% to 63,943.34. The Nifty 50 index added 108.10 points or 0.57% to 19,097.25.

In the broader market, the S&P BSE Mid-Cap index gained 1% while the S&P BSE Small-Cap index rose 0.85%.

The market breadth is strong. On the BSE, 2,323 shares rose and 1,241 shares fell. A total of 146 shares were unchanged.

The US Federal Reserve held interest rates at a 22-year high, with the benchmark rate remaining between 5.25% and 5.50%, for the second meeting in a row.

IPO Update:

The initial public offer (IPO) of Honasa Consumer received bids for 7,94,45,312 shares as against 2,88,99,514 shares on offer, according to stock exchange data at 13:30 IST on Thursday (2 November 2023). The issue was subscribed 2.75 times.

The issue opened for bidding on Tuesday (31 October 2023) and it will close on Thursday (2 November 2023). The price band of the IPO is fixed at Rs 308-324 per share. An investor can bid for a minimum of 46 equity shares and in multiples thereof.

Stocks in Spotlight:

Hero MotoCorp fell 1.14%. The two-wheeler major reported a net profit of Rs 1,053.81 crore in Q2 FY24, registering a growth of 47.17% as compared with Rs 716.07 crore in Q2 FY23. Revenue from operations increased 4.08% YoY to Rs 9,445.42 crore in Q2 FY24.

Tata Steel rose 0.86%. The steel major reported consolidated net loss of Rs 6511 crore in Q2 FY24 as compared with net profit of Rs 1297 crore in Q2 FY23. Turnover fell to Rs 59,490 crore in Q2 FY24 from Rs 59,878 crore in Q2 FY23.

Britannia Industries gained 2.36%. The company reported consolidated net profit of Rs 586.50 crore in Q2 FY24 as compared with net profit of Rs 490.58 crore in Q2 FY23. Total income rose to Rs 4,485.23 crore in Q2 FY24 from Rs 4,432.85 crore in Q2 FY23.

State Bank of India (SBI) advanced 0.67%. SBI raised Rs 10,000 crore at a coupon rate of 7.81% through its first Basel III compliant Tier 2 Bond for the current financial year. The bonds are issued for 15 years tenor, with the first call option after 10 years.

Kotak Mahindra Bank added 0.62%. The company announced the signing of definitive agreements with Zurich Insurance Company for divesting majority stake in Kotak Mahindra General Insurance.

The private sector lender said that the bank, Kotak Mahindra General Insurance Company and Zurich Insurance Company have entered into definitive agreements for a transaction whereby Zurich will invest (approximately) Rs 4,051 crore to acquire a 51% stake in Kotak General Insurance through a combination of fresh growth capital and share purchase.

Godrej Consumer Products was up 1.11%. The Godrej Group company`s consolidated net profit grew 20.6% to Rs 432.77 crore in Q2 FY24 from Rs 358.86 crore posted in Q2 FY23. Revenue from operations increased 6.1% YoY to Rs 3,568.36 crore in the quarter ended 30 September 2023, led by volume growth of 10% and constant currency growth of 16% YoY.

Global Markets:

European markets advanced and most of the Asian markets traded higher on Thursday, as investors took comfort from the U.S. Federal Reserve�s decision to leave its benchmark interest rates unchanged, while parsing inflation and trade data from across the region.

The Fed kept rates steady on Wednesday, as widely expected. While Chair Jerome Powell maintained the option of another hike, his comments suggested he was less than committed to the idea.

Risks were now "more two sided" and almost "balanced", he said in his press conference, and expectations of inflation "were in a good place".

Back in Europe, it�s the turn of the Bank of England to announce its latest monetary policy decision later in the session.

This central bank is widely expected to follow the European Central Bank and the Fed in keeping interest rates unchanged at their 15-year high this month, but it still has to battle an inflation rate that came in at 6.7% in September, more than three times its target.

US stocks advanced on Wednesday after the Federal Reserve kept interest rates unchanged for a second consecutive time � leading investors to think the central bank would stay put for the rest of the year.

The Federal Reserve on Wednesday held rates steady at a range of 5.25%-5.5%. amid signs of economic growth, while labor market conditions and inflation remain above the central bank�s target. The decision also included an upgrade to the Fed�s general assessment of the economy.

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