Stock Market Today: Nifty, Sensex End Near Two-Month Low; Bajaj Auto, Shriram Finance Top Losers

The Dow Jones Industrial futures was 0.08% higher at 43,378.00 as of 3:28 p.m. IST. The S&P 500 futures was 0.39% higher at 5,911.25, and the Nasdaq 100 Future was 0.69% higher at 20,489.25 as of 3:29 p.m. IST.

• Europe: Main Refinancing Rate

• Europe: Monetary Policy Statement

• US: Month on Month Core Retail Sales

• US: Month on Month Retail Sales

• US: Unemployment Claims

• Europe: ECB Press Conference

• USD: Capacity Utilization Rate

• US: Month on Month Industrial Production

• US: Month on Month Business Inventories

• US: Natural Gas Storage

• US: Crude Oil Inventories

• US: FOMC Member Goolsbee Speaks

Benchmark equity indices extended gains to a third consecutive session to record their lowest closing in nearly two months as some quarterly results failed to impress the market.

Investors now look forward to quarterly result of heavyweight IT companies including Wipro and Infosys to be announced later in the day.

In addition, on Friday markets will also react to a slew of economic data and events in US and Europe including ECB's monetary policy decision, US retail sales, and US unemployment claims.

Intraday, the Nifty fell 0.97% and Sensex fell 0.7%. At close, Nifty fell 0.89% or 221.45 points to 24749.8 and Sensex ended 0.6% or 494.75 points lower at 81006.61.

According to Aditya Gaggar, director of Progressive Shares the Nifty finally broke its range of 24,920-25,200. He added that a break below 24,750 will drag the Index towards 24,430; and in the case of a reversal, 24,950 will be considered as immediate support.

Shares of HDFC Bank Ltd., Bajaj Auto Ltd., Mahindra & Mahindra Ltd., Bharti Airtel Ltd., and ICICI Bank Ltd. dragged the Nifty.

While those of Infosys Ltd., Larsen & Toubro Ltd., Tech Mahindra Ltd., State Bank Of India Ltd., and Power Grid Corp. Of India Ltd. cushioned the fall.

Except IT, all sectoral indices ended lower. Nifty Realty and Nifty Auto fell the most.

Market breadth was skewed in favour of sellers. Around 2,690 stocks declined, 1,273 stocks advanced, and 101 stocks remained unchanged on BSE

Broader markets underperformed benchmark indices. The BSE Midcap and Smallcap indices settled 1.65% and 1.42% lower, respectively.

On BSE, 18 sectors declined, and two advanced out of 20. The BSE Realty declined the most, while the BSE IT rose the most.

Rupee weakened by 7 paise to close at 84.07 against the US dollar.

It closed at 84.00 on Wednesday.

Source: Bloomberg

• Nifty and Sensex end lower for a third consecutive session

• Nifty and Sensex recorded their lowest closing since August 20 and August 21 respectively

• Nifty ends 0.89% or 221.45 points down at 24749.85

• Sensex ends 0.6% or 494.75 points lower at 81006.61

• Intraday, the Nifty fell as much as 0.97% and Sensex lost as much as 0.7%.

• Broader indices underperformed; Nifty Midcap 100 ended 1.7% down and Nifty Smallcap 250 closed 1.4% lower

• Except Nifty IT, all sectoral indices were lower at close

• Infosys and Tech Mahindra were top Nifty gainers

• Bajaj Auto and Shriram Finance fell the most

• Revenue up 2% at Rs 5,767 crore vs Rs 5,633 crore

• EBITDA down 0.6% at Rs 1,116 crore vs Rs 1,123 crore

• EBITDA margin at 19.4% vs 19.9%

• Net profit down 32% at Rs 227 crore vs Rs 333 crore

Bharat Forge Ltd. will acquire AAM India Manufacturing Corp Pvt. Ltd. to expand its operations. The company has entered into a share purchase agreement with AAM India to acquire 100% stake, Bharat Forge said in an exchange filing on Wednesday.

• Net Profit up 25% at Rs 474 crore versus Rs 378 crore (YoY).

• Net NPA at 0.28% versus 0.38% (QoQ).

• Gross NPA at 1.10% versus 1.32% (QoQ).

• NII up 16% at Rs 1,060 crore versus Rs 915 crore (YoY).

European markets opened higher ahead of rate decision by European Central Bank but UK's FTSE 100 and Spain's IBEX erased gains and traded flat at 1:55 p.m. France CAC rose the most by 0.8% followed by Germany's DAX and Euro Stoxx 50, which rose 0.5% each.

Most indices in the Asia Pacific region ended lower Thursday but Australia's ASX 200 bucked the trend to gain 0.9% and close at 8,355.90. CSI 300 ended at 3,788.22, down 1.13% and Hong Kong's Hang Seng was at 20,079.10, down 1.02%.

Losses in China were led by realty stocks which fell as country's housing minister's briefing failed to impress investors.

Japan's Nikkei closed at 38,911.19, down 0.69% and South Korea's was flat at 2,609.30.

• NII rose 13% on the year to Rs 3,411 crore compared to Rs 3,023 crore (YoY)

• Net Profit rose 51% to Rs 913 crore compared to Rs 605 crore (YoY)

• Gross NPA at 4.59% vs 4.54% (QoQ)

• Net NPA at 0.69% vs 0.73% (QoQ)

Hyundai Motor India Ltd.'s initial public offering got fully subscribed on its third day on Thursday, after tepid response in the initial two days. The bids were led by qualified institutional buyers, while the portion for retail investors saw underwhelming demand.

Nifty IT became the only sectoral index that was trading higher as of 12:51 p.m. amid losses across all the other sectors. Gains were led by share price of Mphasis which traded 5.8% higher as of 12:52 p.m and all the other constituents traded higher as well. Market participants now look forward to Q2 results of Wipro and Infosys.

India's benchmark stock indices were trading lower through midday on Thursday, tracking a decline in HDFC Bank Ltd. and Bajaj Auto Ltd. share prices. As of 12:08 p.m., the Nifty 50 was trading 0.76% lower at 24,781.20 and the Sensex was trading 0.43% lower at 81,043.21. 

So far today, the Nifty 50 fell 0.81% to 24,769.95, and the Sensex declined 0.62% to 80,998.12.

The weakness would increase if the market (Nifty and Sensex) broke the levels of 24,700 and 80,600, said Shrikant Chouhan, head, equity research, Kotak Securities. "On the upside, the market (Nifty and Sensex} could move towards 25,150 and 82,000. The strategy should be to reduce long positions at each resistance level."

Bajaj Auto Ltd. share price plunged 12.11% to Rs 10,210.00 apiece, the lowest level since Aug 23 after analysts flagged concern over its high valuation. The company has posted its highest ever quarterly revenue. Bajaj Auto stock holds 1.03% weightage in the Nifty 50 index.

HDFC Bank Ltd., Bajaj Auto Ltd., ICICI Bank Ltd., Mahindra & Mahindra Ltd., and Axis Bank Ltd. weighed on the Nifty 50.

Infosys Ltd., State Bank of India, Tech Mahindra Ltd., Reliance Industries Ltd., and Hindalco Industries share prices limited losses to the index.

On NSE, 11 sectors declined and one advanced. The NSE Nifty Realty declined the most, while the NSE Nifty IT rose.

Broader markets underperformed benchmark indices, with the BSE Midcap and Smallcap falling 1.24% and 1.09%, respectively, through midday on Thursday.

On BSE, 18 sectors declined and two advanced. The BSE IT was the best performing sector, and the BSE Auto declined the most.

Market breadth was skewed in favour of sellers. Around 2,482 stocks declined, 1,294 stocks advanced, and 137 stocks remained unchanged on BSE.

• Overall Subscription At 86%

• NII Subscription At 33%

• Retail Subscription At 43%

• QIB Subscription At 1.99 times

Nifty FMCG fell for a second consecutive session on Thursday to hit its lowest in two months with all its constituents trading in the red at 12:20 p.m. Varun Beverages and Nestle India were top losers.

Shares of Nestle India extended its fall after the company reported a net profit of Rs 899 crore in September quarter, down 0.9% from a year ago period. Margin for the period came in at 22.9% against 24.3% in year ago period. Revenue grew slightly by 1.5% to Rs 5,104 crore.

Analysts had estimated a net profit of Rs 908 crore and revenue of Rs 5,243 crore.

Reliance Industries Ltd. has set Monday, Oct. 28, 2024, as the record date for shareholders eligible to receive its much-anticipated 1:1 bonus shares. This move will benefit approximately 35 lakh shareholders, allowing them to double their holdings at no additional cost.

Find all details here.

Nestle SA has cut its sales and profit guidance for the year as it struggles to rebuild market share after higher prices turned consumers off branded products, Bloomberg reported.

Nestle India Ltd. is will announce its Sept. quarter results on Thursday.

Noel Tata can not hold the Chairman seat at Tata Trusts and Tata Sons together. The story starts in 2017. Tata Sons was converted into a private limited company in that year after Cyrus Mistry was removed from the board of Tata Sons board.

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Information technology majors Infosys Ltd. and Wipro Ltd. will be among the top names to watch out for as they will report their second-quarter earnings on Thursday.

Axis Bank Ltd., Nestle India Ltd., Tata Communications Ltd. and LTIMindtree Ltd. are among the other big names that will announce their results for the second quarter of the current financial year.

Catch latest updates on quarterly earnings here.

The Nifty Realty index snapped its three day gaining streak and fell the most among sectoral indices as shares of Oberoi Realty and Macrotech Developers were the top losers.

Mphasis Ltd. on Thursday reported a 4.6% sequential rise in net profit in the quarter ending September. The company's net profit stood at Rs 423 crore, compared to Rs 404 crore in the first quarter, according to an exchange filing.

Larsen & Toubro's hydrocarbon business has received significant order. The project involves the license, engineering, procurement, and construction of a 1,200 MTPD (DAP basis) NPK fertilizer plant along with associated utilities and off-site facilities for Rashtriya Chemicals and Fertilizers Limited at their Thal unit in Raigad district, an exchange filing said. The company classifies orders of Rs 1,000 to 2,500 crore as significant.

Tata Power Co. has received letter of intent from REC Power arm to acquire project SPV ERES-XXXIX for broad consideration of Rs 290 crore, an exchange filing said

On a quarter-on-quarter basis, Infosys' revenue is projected to increase by 3.5% to Rs 40,707 crore, while profit may rise by 7% to reach Rs 6,815 crore. The company guided for revenue growth of 3–4% for the fiscal and in April-June, it raised its revenue forecast, citing significant large deals during the April–June period.

Indians could be facing a CNG price hike of Rs 5 per kg or more, as reduced allocation of domestic Administered Price Mechanism or APM gas for city gas distributors is expected to increase CNG firms' costs.

Click here to find out more.

Nifty Auto hit its lowest in a month with all its constituents trading in the red as of 9:44 a.m.

SRF share price fell to four month low of Rs 2,206.30 after UBS downgraded its rating to 'sell' from the previous 'buy', owing to prolonged growth difficulties in the company’s key segments. The brokerage has also slashed the target price to Rs 2,100 per share from Rs 2,700 apiece. This implies a downside of 8.77% from the previous closing price.

Bajaj Auto share price fell the most since March 2020 after it announced earnings for the quarter ended September as analysts flagged high valuations remain a concern.

Benchmark equity indices opened higher tracking gains in most global markets as shares of Infosys and Reliance led gains. Infosys shares gained ahead of its second quarter results and those of Reliance rose as the company announced record date of bonus issue.

At pre-open, the Nifty was at 25027.40, up 0.22% or 56.10 points and Sensex was at 81759.70, up 0.32% or 258.34 points. Vikas Jain, head of research at Reliance Securities said Nifty 50 has made a lower top on the daily charts and witnessing selling pressure from the higher range and breakdown below 24,900 levels would witness sharp profit booking.

"On the higher side crossover of 25,300 will trigger positive up move crossing its last week highs and a breakout to test 25,550 levels," he said.

Shares of Infosys Ltd., Reliance Industries Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., and Sun Pharmaceutical Industries Ltd. contributed the most to the gains.

While those of Bajaj Auto, HDFC Bank Ltd., Mahindra & Mahindra Ltd., Nestle India Ltd., and Axis Bank Ltd. capped the upside.

Sectoral indices were mixed at open. Nifty Metal rose the most and Nifty Auto was top loser.

At pre-open, the Nifty was at 25027.40, up 0.22% or 56.10 points and Sensex was at 81759.70, up 0.32% or 258.34 points. Aditya Gaggar, director of Progressive Shares said Nifty continued to oscillate in the well-maintained range of 24,920-25,200 and a directional breakout is now necessary for a clear trend.

The yield on the 10-year bond opened flat at 6.77% after it closed at 6.77% on Wednesday, according to Bloomberg.

Rupee weakened by 2 paise to open at 84.02 against the US dollar as it closed at 84.00 on Wednesday, according to Bloomberg.

Jefferies has maintained 'buy' on KEI Industries with target of Rs 5,365, implying 22% upside. It said 2QFY25 EBITDA growth muted at 8% YoY, 15% below estimate and extra High Voltage cable sales declined 51% YoY, expect deliveries to pick up. The brokerage expects positive surprise in 12-18 months on Power T&D orders.

Net Profit rose 4.6% on quarter to Rs 423 crore on a revenue growth of 3.3% to Rs 3,536 crore. EBIT was up 6% sequentially at Rs 544 crore and EBIT margin was at 15.4%, slightly higher than 15% in previous quarter.

Government cut in domestic APM gas allocation to city gas distributers is a big negative for gas stocks including Mahanagar Gas, Indraprastha Gas, and Gujarat Gas, according to Citi Research. The brokerage estimates cut in allocation at 4 million metric standard cubic meter of gas per day and APM gas allocation cut by around 20%.

Lower APM gas allocation is negative for gas companies and no reversal in move to lead to gas cos sourcing gas from international markets.

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At 8:10 a.m., China's CSI 300 had erased all its gains and traded flat at 3,829.55 tracking housing minister Ni Hong press briefing. However, Hang Seng traded 1% higher after Hong Kong eased its mortgage rules to allow homebuyers to fork out lower downpayment, aiming to address a prolonged property slump in the city.

Emkay has downgraded Bajaj Auto to 'sell' from 'reduce' with a lower target price of Rs 9,500 vs Rs 8,300 earlier, implying downside of 18%. It said that Q2 results were marginally weak on lower ASPs while 2 wheeler retail growth has been muted in FY25YTD at 6.7% and Sep-Oct at 5.7%

The brokerage also noted that the company has lost market share in the fast-growing 125cc category.

Bajaj Auto's management expects FY25 industry growth to be closer to 5% than 8% due to ongoing below-par festive performance persisting but exports are recovering, albeit with key Nigeria market still 50% below its earlier peak. It said it prefers Hero on better risk reward and TVS on improved growth prospects.

Ni Hong, China's housing minister in a press briefing said that China vows to stabilize property market from declining further and aims to renovate 1 million houses in urban villages'. He said that 'Urban Village' renovation will help reduce unsold homes.

The November futures contract of WTI Crude traded 0.4% higher at $70.87 a barrel as of 7:36 a.m. and December contract of ICE Brent Crude rose 0.3% to $74.51 a barrel.

While most Asian indices tracked Wall Street and were higher in the early trade, Japan's Nikkei traded 0.6% down at 38,945.53 as of 7:15 a.m. after exports in September fell 1.7% against Reuters poll of 0.5% growth rate.

Investors will look for Australia's job data. Australia's ASX S&P 200 traded 0.8% higher at 8348.80, CSI 300 was up 0.7% to 3,859.73, and South Korea's Kospi was flat at 2,611.59. Hong Kong's Hang Seng climbed more than 1% to 20,592.13.

Indices in the US closed higher Wednesday amid earnings announcements. The Dow Jones Industrial Average recorded its highest close as it ended 0.79% higher at 43,077.70. The S&P 500 and Nasdaq Composite ended 0.47% and 0.28% higher at 5,842.47 and 18,367.08, respectively.

On Thursday, Traveler, Blackstone, Elevance Health, KeyCorp, and M&T Bank will announce their results.

The GIFT Nifty was trading at 25,020.00, down 0.2% or 50 points as of 6:47 a.m. Among other stocks, share price of Bajaj Auto Ltd. will react to its results, those of Axis Bank Ltd. will trade ahead of its earnings and RVNL's share price is expected to rise on order win.

On Wednesday, the NSE Nifty 50 and the S&P BSE Sensex extended their two-day losing streak on Wednesday, reflecting a broader sell-off across global markets. Most indices in the Asia-Pacific region and Europe fell sharply, influenced by overnight trading on Wall Street.

The Nifty 50 closed down 86.05 points, or 0.34%, at 24,971.30, while the Sensex fell by 318.76 points, or 0.39%, to settle at 81,501.36.

Foreign portfolio investors continued their selling streak in Indian equities for the 13th consecutive session on Wednesday, offloading stocks worth Rs 3,435.9 crore. In contrast, domestic institutional investors purchased stocks valued at Rs 2,256.3 crore, according to provisional data from the National Stock Exchange.

The Indian rupee strengthened by 4 paise, closing at 84.00 against the US dollar.