MARKETS RALLY AS BJP WINS HARYANA; NIFTY CROSSES 25,000, METAL STOCKS DRAG

The domestic equity market bounced back sharply on Tuesday, ending a six-day losing streak. The positive sentiment was driven by the BJP`s strong performance in Haryana`s state elections, defying exit poll predictions. The Nifty50 surged past the 25,000 mark, with media, auto, and pharma stocks leading the rally. However, metal stocks struggled, weighed down by China`s roadmap lacking significant stimulus measures, alongside falling iron ore prices pressuring steelmakers. Despite the election boost, markets remain focused on global economic challenges and the Q2 earnings season for longer-term direction.

In the barometer index, the S&P BSE Sensex rose 584.81 points or 0.72% to 81,634.81. The Nifty 50 index added 217.40 points or 0.88% to 25,013.15.

Trent (up 8.03%), Reliance Industries (up 2.01%) and HDFC Bank (up 1.95%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 1.86% and the S&P BSE Small-Cap index gained 2.44%.

The market breadth was strong. On the BSE, 3024 shares rose and 923 shares fell. A total of 99 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.26% to 14.59.

Assembly Election Outcome:

The BJP is set for a historic third term in Haryana, defying exit polls. With 40 wins and leading in 8 seats, the BJP is poised for victory in the 90-seat Assembly, while Congress secured 31 seats and leads in 6.

In Jammu and Kashmir, the Congress-National Conference alliance crossed the majority mark with 42 wins, while the BJP took 29 seats. NC`s Omar Abdullah is tapped as the next Chief Minister. AAP`s Mehraj Malik secured a surprise win in Doda. Concerns remain over a potential hung assembly, with five Lieutenant Governor-nominated MLAs possibly holding the balance of power.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.21% to 6.925 as compared with previous close 6.967.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9675, compared with its close of 84.0000 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement shed 0.26% to Rs 75,854.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.14% to 102.39.

The United States 10-year bond yield shed 0.10% to 4.025.

In the commodities market, Brent crude for December 2024 settlement lost $1.71 or 2.11% to $79.22 a barrel.

Global Markets:

European stocks declined while most Asian shares ended lower on Tuesday as investors are assessing the conflict in the Middle East closely and its potential impact on oil markets, supply chains and the global economy.

The European Central Bank meets next week, and is expected to ease policy once more having already cut rates twice this year as inflationary pressures have eased.

A brief surge in Chinese stocks at the market`s opening on Tuesday was quickly tempered by a less-than-inspiring address from the country`s state planner. Despite initial enthusiasm for potential stimulus measures, the momentum waned after National Development and Reform Commission (NDRC) Chairman Zheng Shanjie announced a $28 billion support package for local governments. While he promised to accelerate fiscal spending and expressed optimism about meeting this year`s economic goals, investors were likely hoping for more substantial measures.

U.S. stocks fell sharply on Monday as investors anticipated a smaller rate cut from the Federal Reserve due to a stronger-than-expected U.S. jobs report. The Dow Jones Industrial Average fell 0.94%, the S&P 500 dropped 0.96%, and the NASDAQ Composite lost 1.18%.

Fears of an escalating Middle East conflict also dampened risk appetite. Meanwhile, the impending landfall of Hurricane Milton, following on the heels of Hurricane Helene, added further anxiety.

US tech stocks witnessed a sharp decline. Google`s parent company, Alphabet Inc., faced pressure after being ordered to restructure its Android app store. Additionally, negative analyst comments on Amazon and Apple triggered selling in these tech giants.

The release of the minutes from the September Federal Reserve meeting, scheduled for Wednesday, will be closely monitored. These minutes will offer insights into the Fed`s future rate cut strategy. Thursday`s consumer price index data is another key event. Investors will be looking for signs of persistent inflation, which could influence the Fed`s monetary policy decisions.

Stocks in Spotlight:

Saregama India surged 8.44%, fueled by reports suggesting the company is in talks to acquire a majority stake in Dharma Productions, a prominent film production house owned by Bollywood filmmaker Karan Johar. The media reports indicated that the deal might not materialize and is still in its early stages. This development comes at a time when the film industry is facing challenges due to box office volatility and rising star fees, making it difficult for production companies to operate independently.

Trent surged 8.03% after the company launched its new lab-grown diamond (LGD) brand `Pome` in Westside stores. Pome offers a range of LGD jewelry, including earrings, rings, necklaces, and bracelets, all crafted with the same expertise as natural diamonds. Lab-grown diamonds are chemically identical to natural diamonds but are created in a laboratory instead of being mined.

Tata Motors shed 0.9%. The company announced that the Jaguar Land Rover (JLR) wholesale volume decreased 10% year on year (YoY) to 87,303 units in Q2 FY25 (excluding the Chery Jaguar Land Rover China JV).

Meanwhile, the company�s global wholesales in Q2 FY25, including Jaguar Land Rover were at 3,04,189 units, slipped 11%, as compared to Q2 FY24.

Rites advanced 1.64% after the company said that it has received the LOA for supply and commissioning of overhauled in-service cape gauge ALCO diesel electric locomotives from Ntokoto Rail Holdings. The value of the aforementioned contract is $5.4 million, which at the prevailing exchange translates to Rs 45.33 crore.

SpiceJet soared 9.10% after the company announced its plans to significantly expand its fleet with the induction of ten aircraft by the end of November 2024. The company stated that seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service.

Allied Digital Services zoomed 16% after the company announced that it has been awarded the Pune Safe City Project for total contract value of more than Rs 430 crore.

PSP Projects rallied 4.45% after the company announced that it has received work order worth Rs 269.55 crore for construction of high rise residential tower �SIBAN� at Gandhinagar.

MOIL gained 4.02% after the company achieved its September production of 1.46 lakh tonnes of manganese ore in September 2024. The company has achieved its sales of 1.59 lakh tonnes of manganese ore in September 2024.

Navkar Corporation jumped 4.60%. The company reported standalone net loss of Rs 2.29 crore in Q2 FY25 as compared with net profit of Rs 2.10 crore reported in Q2 FY24. Revenue from operations stood at Rs 133.12 crore in second quarter of FY25, up 40.75% as compared with Rs 94.58 crore posted in same quarter previous year.

Hi-Tech Pipes advanced 2.05% after the company announced that its board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 194.98 per share.

Sobha added 1.20%. The company said that its total sales declined 31.63% to Rs 1,178.5 crore in Q2 FY25 from Rs 1,723.8 crore posted in Q2 FY24.

IPO Update:

The initial public offer (IPO) of Garuda Construction and Engineering received bids for 3,80,15,666 shares as against 1,99,04,862 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (8 October 2024). The issue was subscribed 1.91 times.

The issue opened for bidding on Tuesday (08 October 2024) and it will close on Thursday (10 October 2024). The price band of the IPO is fixed between Rs 90 to Rs 95 per share. An investor can bid for a minimum of 157 equity shares and in multiples thereof.

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