Market snaps losing streak; Nifty back above 19k

The stock market broke its six-day losing streak and bounced today, driven by savvy bargain hunters. The Nifty 50 index successfully climbed above the 19,000 level, fueled by a broader rally. PSU banks, media and realty shares surged. The value buying was triggered by the positive sentiment stemming from the recovery in other Asian indices. However, there is still some caution among traders due to various negative factors such as the Israel-Hamas conflict, rising US bond yields, outflows from FII funds, and concerns about potential rate hikes in the near future.

The barometer index, the S&P BSE Sensex jumped 634.65 points or 1.01% to 63,782.80. The Nifty 50 index added 190 points or 1.01% to 19,047.25.

Adani Enterprises (up 2.63%), Reliance Industries (up 1.75%) and Infosys (up 1.68%) boosted the indices.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.70% while the S&P BSE Small-Cap index gained 1.89%.

The market breadth was strong. On the BSE, 2,827 shares rose and 839 shares fell. A total of 133 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slumped 7.03% to 10.91.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper shed 0.02% to 7.350 from its previous close of 7.366.

In the foreign exchange market, the rupee edged slightly higher against the dollar. The partially convertible rupee was hovering at 83.2500, compared with its close of 83.2550 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement fell 0.19% to Rs 60,835.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.03% to 106.57.

The United States 10-year bond yield gained 0.33% to 4.862.

In the commodities market, Brent crude for December 2023 settlement advanced $1.86 or 2.12% to $89.79 a barrel.

Global Markets:

European shares fell across the board while Asian stocks advanced on Friday in an attempt to rebound from sharp losses previously.

US stocks tumbled on Thursday, dragged by tech and tech-adjacent megacap shares as investors digested mixed quarterly earnings and signs of economic resiliency that could encourage the Federal Reserve to keep interest rates at a restrictive level longer than expected. U.S. data overnight showed the U.S. economy grew almost 5% in the third quarter.

Overnight, the European Central Bank left interest rates unchanged as expected. ECB President Christine Lagarde told a press conference the euro zone economy was weak but stressed that price pressures remained strong and could be aggravated further if the Middle East conflict pushed energy costs higher.

Stocks in Spotlight:

Shriram Finance rallied 7.70%. The company reported 12.59% rise in standalone net profit to Rs 1750.84 crore on 15.45% jump in total income to Rs 8,564.45 crore in Q2 FY24 over Q2 FY23.

Maruti Suzuki India rose 1.21% after the company`s standalone net profit surged 80.28% to Rs 3,716.5 crore from Rs 2,061.5 crore recorded in Q2 FY23. Net sales grew by 24.49% year on year to Rs 35,535.1 crore during the quarter, on the back of higher sales volume and product mix.

Bajaj Finserv rose 0.45%. The company`s consolidated net profit surged 23.89% crore on a 25.09% increase in total income to Rs 26,022.66 crore in Q2 FY24 over Q2 FY23.

Shalby spurted 7.86% after the company announced that its consolidated net profit rose 49.8% to Rs 27.58 crore on 17.9% increase in net sales to Rs 237.98 crore in Q2 September 2023 over Q2 September 2022.

Max India climbed 6.10% after the company`s subsidiary, Antara Senior Care, expanded its operations into Southern India. Antara plans to set up 3 Care Homes, i.e., assisted living facilities in a home-like environment with integrated health care services, in Bengaluru with a total capacity of ~200 beds.

NLC India jumped 7.56% after the company reported a standalone net profit of Rs 1,121.41 crore in Q2 FY24, steeply higher than Rs 367.21 crore recorded in Q2 FY23. Revenue from operations stood at Rs 2,471.32 crore in Q2 FY24, up 10.22% from Rs 2,752.75 crore posted in Q2 FY23.

Colgate-Palmolive (India) added 2.33%. The company reported 22.3% rise in net profit to Rs 340 crore on 6.1% rise in net sales to Rs 1462.4 crore in Q2 FY24 over Q2 FY23.

Vodafone Idea rose 1.40%. The company reported consolidated net loss of Rs 8,737.9 crore in Q2 FY24 as compared with Rs 7,595.5 crore in Q2 FY23. Revenue from operations increased by 0.57% to Rs 10,716.3 crore in Q2 FY24 as compared with Rs 10,655.5 crore posted in Q1 FY24, aided by better subscriber mix and 4G subscriber additions.

Aditya Birla Sun Life AMC (ABSL AMC) fell 1.40%. The company reported 7.09% decline in consolidated net profit to Rs 178.09 crore in Q2 FY4 as against Rs 191.69 crore posted in Q2 FY23. Revenue from operations grew by 7.68% year on year to Rs 334.99 crore in the quarter ended 30 September 2023.

RailTel Corporation of India rose 2.87% after the company reported 23% rise in net profit to Rs 68.15 crore on a 40% increase in revenue from operations to Rs 599.15 crore in Q2 FY24 as compared with Q2 FY23.

Ujjivan Small Finance Bank rose 0.68% after the bank reported 11% rise in net profit to Rs 328 crore on a 39% increase in total income to Rs 1,580 crore in Q2 FY24 as compared with Q2 FY23.

Dixon Technologies (India) added 0.57%. The company`s consolidated net profit rose 47% to Rs 113 crore on 28% decline in net sales to Rs 4,943 crore in Q2 September 2023 over Q2 September 2022.

IPO Update:

The initial public offer (IPO) of Blue Jet Healthcare received bids for 13,50,46,488 shares as against 1,69,99,612 shares on offer, according to stock exchange data at 17:00 IST on Friday (26 October 2023). The issue was subscribed 7.94 times.

The issue opened for bidding on Wednesday (25 October 2023) and it will close on Friday (27 October 2023). The price band of the IPO is fixed at Rs 329-346 per share. An investor can bid for a minimum of 43 equity shares and in multiples thereof.

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