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Stocks slide for 5th day on Middle East tensions, bond yield surge

Published on Oct 25, 2023 17:18

The domestic stock market tumbled for the fifth consecutive session on Wednesday amid mounting tensions in the Middle East and a surge in US bond yields. There was an air of unease as concerns grew about the potential outflow of funds from India. Despite a drop in oil prices and positive Q2 results, a sense of caution lingered amongst investors, who remained wary of the implications of elevated interest rates on future growth. The Nifty settled below the 19,150 mark after hitting the day`s high at 19,347.30 in morning trade. Media, IT, and private banks faced downward pressure, while PSU banks and metal shares defied the overall market weakness.

The barometer index, the S&P BSE Sensex dropped 522.82 points or 0.81% to 64,049.06. The Nifty 50 index shed 159.60 points or 0.83% to 19,122.15. In five consecutive sessions, the Sensex slipped 3.58% while the Nifty lost 3.48%.

Infosys (down 2.76%), ICICI Bank (down 1.47%) and Bajaj Finance (down 1.30%) were majordrags.

In the broader market, the S&P BSE Mid-Cap index declined 0.52% while the S&P BSE Small-Cap index fell 0.77%.

The market breadth was weak. On the BSE, 1140 shares rose, and 2551 shares fell. A total of 104 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 3.73% to 11.31.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell 0.49% to 7.346 from its previous close of 7.382.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1800, compared with its close of 83.1600 during the previous trading session.

MCX Gold futures for 5 December 2023 settlement shed 0.02% to Rs 60,525.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.17% to 106.45.

The United States 10-year bond yield advanced 0.62% to 4.870.

In the commodities market, Brent crude for December 2023 settlement lost 15 cents or 0.17% to $87.92 a barrel.

Global Markets:

Shares in Europe and Asia were mixed on Wednesday as investors assess Australia`s third-quarter inflation figures, which will give clues to the Reserve Bank of Australia`s monetary policy decision when it meets on November 3. The country`s third quarter inflation rate came in at 5.4%, lower than the 6% seen in the second quarter.

Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally.

Stocks in Spotlight:

Tech Mahindra fell 1.16%. The IT major`s consolidated net profit slipped 28.68% to Rs 493.9 crore in Q2 FY24 as against Rs 692.5 crore posted in Q1 FY24. Revenue from operations declined 2.24% quarter on quarter (QoQ) to Rs 12,863.9 crore in the quarter ended 30 September 2023.

On a year on year (YoY) basis, Tech Mahindra`s net profit dropped 61.58% while revenue fell 2.02% in Q2 FY24. In terms of dollars (USD), revenue stood at $1,555 million in Q2 FY24, down 2.8% QoQ and down 5.1% YoY. In constant currency terms, revenue was down by 2.4% QoQ and down 5.9% YoY.

Axis Bank fell 0.84%. The bank`s operating profit for the quarter grew 12% YOY to Rs 8,632 crore. Core Operating profit for Q2FY24 grew 12% YoY and 5% QoQ to Rs 8,733 crore. Net profit at Rs 5,864 crore in Q2FY24 grew by 10% YoY. Net Interest Income (NII) grew 19% YoY and 3% QoQ to Rs 12,315 crore. Net interest margin (NIM) for Q2FY24 stood at 4.11%, up 15 bps YoY and 1 bps QoQ. Gross NPA at 1.73% declined by 77 bps YoY & 23 bps QoQ, Net NPA at 0.36% declined 15 bps YoY, 5 bps QoQ.

Shanthi Gears rallied 8% after the company reported 26.63% increase in net profit to Rs 21.02 crore on 24.52% rise in revenue from operations to Rs 135.42 crore in Q2 FY24 over Q2 FY23.

Delta Corp advanced 3.62% after the Bombay High Court directed the Directorate General of GST Intelligence, Hyderabad to not pass a final orders on Rs 16,195 crore tax notice against Delta Corp without prior permission from the court, the gaming company said.

Macpower CNC Machines surged 15.57% after the company reported highest-ever net profit of Rs 6.16 crore in Q2 FY24, registering a growth of 60% from Rs 3.85 crore posted in Q2 FY23. Revenue from operations grew by 18% year on year to Rs 63.1 crore during the quarter. As on 30 September 2023, the company reported its highest ever order book of Rs 190.79 crore.

Torrent Pharmaceuticals added 2.41% after the company has reported 23.72% rise in consolidated net profit to Rs 386 crore in Q2 FY24 as compared with Rs 312 crore in Q2 FY23. Revenue from operations jumped 16.11% to Rs 2,660 crore in Q2 FY24 as compared with Rs 2,291 crore posted in Q2 FY23.

Kewal Kiran Clothing spurted 8.73% after the company has reported 27% YoY jump in consolidated net profit to Rs 49.66 crore on a 16% YoY rise in revenue from operations to Rs 262.48 crore in Q2 FY24.

Dreamfolks Services rose 0.52%. The company reported 20.4% increase in consolidated net profit to Rs 17.85 crore on 65% jump in revenue from operations to Rs 282.49 crore in Q2 FY24 over Q2 FY23.

Network18 Media & Investments fell 1.76% after the media company`s consolidated net loss widened to Rs 60.99 crore in Q2 FY24 as against a net loss of Rs 36.49 crore reported in Q2 FY23. Revenue from operations jumped 20.44% to Rs 1,865.50 crore in the quarter ended 30 september 2023 from Rs 1,549 crore recorded in the quarter ended 30 September 2022.

TV18 Broadcast slipped 5% after the media company reported a consolidated net loss of Rs 28.92 crore in Q2 FY24 as against a net profit of Rs 5.69 crore posted in Q2 FY23. Revenue from operations stood at Rs 1,794.17 crore in Q2 FY24, up 21.8% YoY, driven by the performance of news business, movie studio and sports vertical.

IPO Corner:

The initial public offer (IPO) of Blue Jet Healthcare received bids for 1,16,53,645 shares as against 1,69,99,612 shares on offer, according to stock exchange data at 15:27 IST on Wednesday (25 October 2023). The issue was subscribed 69%.

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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