SENSEX PLUNGES 1,312 PTS; REALTY SHARES TUMBLE

The headline equity indices continued to trade with steep losses in mid-morning trade. The Nifty tanked below the crucial 23,900 level. Realty shares declined after advancing in the previous trading session.

At 11:26 IST, the barometer index, the S&P BSE Sensex slumped 1,312.19 points or 1.63% to 78,411.33. The Nifty 50 index dropped 437.50 points or 1.80% to 23,866.85.

In the broader market, the S&P BSE Mid-Cap index declined 1.48% and the S&P BSE Small-Cap index fell 1.97%.

The market breadth was weak. On the BSE, 1,014 shares rose and 2,885 shares fell. A total of 135 shares were unchanged.

Economy:

The HSBC final Manufacturing Purchasing Managers` Index rose to 57.5 in October from an eight-month low of 56.5 in September. The flash reading was 57.4. A score above 50.0 indicates expansion.

Finally, manufacturers became more optimistic regarding future output volumes. The level of positive sentiment was above the average seen over the 13-and-a-half-year series history.

Meanwhile, India�s forex reserves declined by $3.463 billion to $684.805 billion in the week ended October 25, according to the latest data from the RBI. For the week ended October 25, foreign currency assets, a major component of the reserves, decreased by $4.484 billion to $593.751 billion.

Gold reserves increased by $1.082 billion to $68.527 billion during the week, the RBI said.

Buzzing Index:

The Nifty Realty index fell 2.89% to 979.90. The index rose 0.96% in the past trading session.

Brigade Enterprises (down 4.77%), Mahindra Lifespace Developers (down 3.96%), DLF (down 3.3%), Prestige Estates Projects (down 3.16%), Phoenix Mills (down 2.96%), Godrej Properties (down 2.94%), Oberoi Realty (down 2.28%), Raymond (down 2.18%), Sobha (down 0.72%) and Macrotech Developers (down 0.59%) declined.

Stocks in Spotlight:

Steel Strips Wheels (SSWL) slipped 2.56% after the company achieved net turnover of Rs 370.05 crore in October 2024, down 6.48% from Rs 395.67 crore posted in October 2023.

Ashok Leyland declined 1.94% after the company has reported total vehicle sales of 15,310 units for the month of October 2024, which is lower by 9% as compared with the sales of 16,864 units sold in October 2023.

Global Markets:

Most Asian stocks rose on Monday as investors looked for clues on fiscal stimulus from an upcoming meeting of China`s top policymakers. However, gains were limited by pre-US election risk aversion and a regional trading holiday in Japan.

Chinese stocks were upbeat as the National People`s Congress Standing Committee began a four-day meeting. The body is expected to outline further fiscal spending measures.

In the US, the S&P 500 closed higher on Friday as a significant miss on job gains in the October payrolls report solidified expectations of a Fed rate cut next week. A rally in Amazon also lifted consumer stocks. The S&P 500 gained 0.4% to 5,728.8 points, the NASDAQ Composite rose 0.8% to 18,239.92 points, and the Dow Jones Industrial Average increased 0.7% to 42,052.19 points.

The US economy added only 12,000 jobs in October, far below the expected 106,000 and a sharp decline from the revised 223,000 in September. However, these figures were impacted by recent hurricanes and ongoing labor actions. The softer-than-expected payrolls data has intensified expectations of further interest rate cuts by the Federal Reserve.

All eyes are on the Federal Reserve`s meeting this week, where the central bank is widely anticipated to implement a 25-basis-point interest rate cut, following a 50-basis-point reduction in September.

After the market closed on Thursday, tech giants Apple and Amazon released their quarterly results. Apple`s stock fell more than 1% after the company`s revenue outlook for the current quarter was projected in the low- to mid-single-digit range, potentially signaling caution ahead of the holiday shopping season.

In contrast, Amazon`s stock surged over 6% as the e-commerce giant reported an 11% year-over-year increase in overall quarterly revenue, benefiting from "once-in-a-lifetime" opportunities presented by generative AI.

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