Shares rebound on positive global cues, Nifty above 19,100; NSE VIX down 8%

The domestic stock market made a strong recovery today, effectively wiping out the losses incurred in the previous two sessions. The benchmark Nifty index regained its footing and comfortably surged back above the 19,100 mark. This resurgence was buoyed by a combination of positive factors, including the US Federal Reserve`s decision to keep interest rates steady, a decline in US bond yields, and stabilised crude oil prices. However, despite the initial surge, the market struggled to maintain these elevated levels and experienced a mild retracement of some gains. Nonetheless, in a redemption move during the latter half of the session, PSU banks, metal companies, and select heavyweight stocks spearheaded the recovery, ultimately bolstering the index to its closing position. Interestingly, mid and smallcap stocks outperformed their frontliner counterparts.

The benchmark index, S&P BSE Sensex, surged by 489.57 points or 0.77% to reach 64,080.90. Meanwhile, the Nifty 50 index increased by 144.10 points or 0.76%, closing at 19,133.25.

Infosys (up 1.25%), Reliance Industries (up 1.01%) and ICICI Bank (up 0.53%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index outperformed the main indices with a gain of 1.20%. Similarly, the S&P BSE Small-Cap index also outperformed the main indices with a rise of 0.97%.

The market breadth was strong. On the BSE, 2,269 shares rose and 1,387 shares fell. A total of 135 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slumped 8.07% to 11.08.

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.

Numbers to track:

The yield on India`s 10-year benchmark federal paper declined 0.43% to 7.326 from its previous close of 7.358.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2600, compared with its close of 83.2850 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement added 0.27% to Rs 60,950.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.67% to 106.16.

The United States 10-year bond yield slipped 1.63% to 4.711.

In the commodities market, Brent crude for January 2023 settlement gained $1.06 or 1.25% to $85.69 a barrel.

Global Markets:

The Dow Jones index was up 125 points, indicating a strong opening in the US stocks today.

European and Asian markets saw gains on Thursday following the U.S. Federal Reserve`s decision to keep interest rates unchanged. While Chair Jerome Powell hinted at the possibility of future rate hikes, his comments indicated a less firm commitment.

In Europe, the Bank of England is expected to maintain interest rates at their current 15-year high, despite facing higher-than-targeted inflation.

US stocks also rose in response to the Fed`s decision, with expectations that rates will remain steady for the remainder of the year. The Fed`s decision reflected positive signs of economic growth, although labor market conditions and inflation remain above the central bank`s target.

Stocks in Spotlight:

Hero MotoCorp declined 1.38%. 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 1.33%. 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 rallied 2.91%. 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) added 1.01%. 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 rose 0.77% after 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.

Gujarat Mineral Development Corporation (GMDC) tumbled 7.58% after the company�s standalone net profit declined 49.23% to Rs 76.04 crore as on Q2 FY24 as compared to Rs 150.60 recorded in Q2 FY23. Revenue from operations fell 28.94% YoY to Rs 383 crore during the quarter.

Godrej Consumer Products gained 1.76%. 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.

LIC Housing Finance fell 2.06%. The company reported a net profit of Rs 1,188.05 crore in Q2 FY24, steeply higher than Rs 304.97 crore recorded in Q2 FY23. Total income stood at Rs 6,758.75 crore in the second quarter of FY24, registering a growth of 32.73% from Rs 5,092.02 crore posted in Q2 FY23.

Godrej Properties advanced 3.03% after the real estate developer�s consolidated net profit increased 21.54% to Rs 66.80 crore as against Rs 54.96 crore posted in Q2 FY23. Revenue from operations surged 107.77% to Rs 343 crore in Q2 FY24 from Rs 165.09 crore recorded in the corresponding quarter previous year.

IPO Update:

The initial public offer (IPO) of Honasa Consumer received bids for 22,00,35,710 shares as against 2,88,99,514 shares on offer, according to stock exchange data at 17:00 IST on Thursday (2 November 2023). The issue was subscribed 7.61 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.

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