Stock Market Live: Nifty, Sensex Fall After Opening Higher As Kotak Bank, Airtel, IndusInd Bank Drag

Tata Consumer Products Ltd. saw its stock price fall over 8% following the release of its second-quarter earnings, where the company reported a flat consolidated net profit. For the quarter ended September 30, the tea and food giant posted a net profit of Rs 367 crore, marking a modest increase of 0.8% year-on-year. This figure, although flat, managed to exceed analysts' expectations, which had set a consensus estimate at Rs 343 crore, according to Bloomberg.

RBL Bank shares fell 13% after the lender reported a 24% decline in net profit in the September quarter to Rs 223 crore as asset quality challenges emanated from credit cards and microlending books.

PNC Infratech fell 19% to hit its lowest level since January after Ministry-of Road Transport & Highways disqualified PNC Infratech Ltd., PNC Khajuraho Highways, and PNC Bundelkhand Highways Private Limited from participating in any tender process of the Ministry for a period of one year with effect from October 18, 2024.

The stock rose after Tech Mahindra Ltd.'s net profit rose 45.4% in the second quarter of the current financial year, beating analysts' estimates.

HDFC Bank jumped over 3% after analysts post its results said that the bank is well–placed in the industry to withstand retail stress cycle due to its early risk–aversion strategy. The private–sector lender's second quarter earnings showed no signs of Net Interest Margin pressure or fresh slippage compared to peers, Bernstein said in a note on Saturday.

Benchmark Indian equity indices tracked their US peers and open higher as shares of HDFC Bank and Tech Mahindra led the gains after their Sept. quarter results.

At pre–open, the NSE Nifty 50 was trading 0.41% higher at 24,956.15, and the BSE Sensex was 0.67% higher at 81,770.02. Ameya Ranadive senior technical analyst, StoxBox said that the upcoming week may begin subdued, with levels of 25100 and 25440 serving as potential resistance points.

"The 24750-24650 zone is anticipated to provide immediate and firm support, and sustainability above it could strengthen bullish conditions in the index," he said. "Conversely, failure to hold above this zone may lead the Nifty to address the former gap-down area until 24300."

Shares of HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., Tech Mahindra Ltd., and ICICI Bank Ltd. contributed the most to the gains.

While those of Kotak Mahindra Bank Ltd., Bharti Airtel Ltd., Tata Consumer Products Ltd., Oil & Natural Gas Corp. Ltd., and ITC Ltd. capped the upside.

Except Nifty FMCG, all sectoral indices rose with Nifty Finance leading.

At pre–open, the NSE Nifty 50 was trading 0.41% higher at 24,956.15, and the BSE Sensex was 0.67% higher at 81,770.02.

"The market is expected to open positively, buoyed by a rally in global markets and better-than-anticipated quarterly results from companies like HDFC Bank, Tata Consumer, Tech Mahindra, and Oberoi Realty," said Vikas Jain, head of research at Reliance Securities. "Additionally, China has reduced its one-year lending rate by 25 basis points, and foreign institutional investors (FIIs) are shifting to long positions in Nifty Futures, which may further support the market."

The yield on the 10-year bond opened flat at 6.81%.

It closed at 6.81% on Friday.

Source: Bloomberg

Rupee opened flat at 84.07 against the US dollar.

It closed at 84.07 on Friday.

Source: Bloomberg

After Kotak Bank released it earnings for the September quarter, Bernstein has maintained market perform with a target of Rs 1,750 implying 6% downside. It said first full quarter after RBI’s embargo and its impact was very visible and the bank saw a slowdown in higher yielding loan segments driving a NIM compression.

Motilal Oswal also maintained neutral with target of Rs 1950, 4% upside. It said the bank's operating performance was inline and card delinquencies drive an increase in slippage run-rate.

360 ONE WAM, Authum Investment & Infrastructure, Aurionpro Solutions, Bajaj Housing Finance, Balu Forge Industries, Bhansali Engineering Polymers, CG Power and Industrial Solutions, City Union Bank, Cyient DLM, Gravita India, HFCL, Jana Small Finance Bank, Mahindra Logistics, Maharashtra scooters, Rajratan Global Wire, Route Mobile, Solara Active Pharma Sciences, Supreme Petrochem, Swaraj Engines, Ultratech Cement, Union Bank of India.

Bernstein has maintained 'outperform' rating with a target price of Rs 2,100, upside of 25%. It said that it sees HDFCB’s results to be better than peers and no signs of NIM pressure or increase in slippages that were seen for peers. It said that it sees pickup in fee growth, moderation in opex growth and strong CASA growth for the lender but weak loan growth is a key negative.

Nuvama maintained reduce with price target of Rs 1,615. The brokerage said that the lender posted mixed Q2 earnings with strong 18% growth in customer assets but NIM fell and asset quality deteriorated sharply. It said credit card and MFI slippage shall likely turn around earliest in three quarters but it sees upside risks to credit costs.

Citi Research also kept rating unchanged at 'buy' but a lower target price of Rs 1990 compared to Rs 2,020 earlier. The new target implies upside of 18%. It said NIMs, Fee, credit cost surprised positively and the bank is better positioned to manage retail stress cycle and NIM.

JP Morgan has initiates coverage on UltraTech Cement and ACC with 'Overweight', with targets at Rs 13,750 and Rs 3,020 respectively, implying 24% and 32% upside. It has also initiated coverage on Ambuja Cement with 'Neutral' rating and target price at Rs 590, implying 3.3% upside. Shree Cement has also been assigned 'Neutral' with target price at Rs 25175 and 3.3% upside.

Dalmia Bharat's share price has been assigned with 'Underweight' and target at Rs 1,550, implying 15.7% downside. The brokerage prefers UltraTech Cement for better Ebitda per tonne.

It said that the sector looks set for consolidation and urbanisation, infra projects will boost medium term cement demand. It expects utilization to remain stable despite new capacity additions and recovery from recent weakness as govt capex grows 40% YoY post monsoons.

Tech Mahindra Q2 Cons QoQ

• Revenue up 2.4% at Rs 13313.2 crore vs Rs 13,005.5 crore (estimates Rs 13,211 crore)

• Net profit rose 45.4% Rs 1257.5crore vs Rs865 crore (estimates Rs 1,013 crore)

• Ebit increased 16.2% to Rs 1280.4 crore vs Rs 1102.3 crore (estimates Rs 1228 crore)

• Margin expanded 114 basis points to 9.6% (estimates 9.3%)

Q2  Earnings Kotak Mahindra Bank

• Net Profit at Rs 3,344 crore Vs Bloomberg Est Of Rs 3,424 crore

• Gross NPA At 1.49% Vs 1.39% (QoQ)

• Net NPA At 0.43% Vs 0.35% (QoQ)

• NII rose 11% At Rs 7,020 crore vs Rs 6,297 crore (YoY)

• Net Profit rose 5% at Rs 3,344 crore vs Rs 3,191 crore (YoY)

RBL Bank Q2 Earnings

• Net Profit down 24% at Rs 223 crore vs Rs 294 crore (YoY)

• Gross NPA At 2.88% vs 2.69% (QoQ)

• Net NPA At 0.79% vs 0.74% (QoQ)

• NII rose 9% Rs 1,615 crore vs Rs 1,475 crore (YoY)

Indiamart Q2 Earnings (Consolidated, YoY)

• Revenue rose 18% at Rs 348 crore vs Rs 295 crore

• Ebitda rose 68% at Rs 134.6 crore vs Rs 80 crore

• Margin rose 1156 basis points at 38.71% vs 27.14%

• Net profit rose 94.66% at Rs 135.1 crore vs Rs 69.4 crore

 Dalmia Bharat Q2 Earnings (Condolidated, YoY)

• Revenue down 2.1% at Rs 3,087 crore vs Rs. 3,153 crore

• Ebitda fell 26.8% to Rs 434 crore vs Rs 593 crore

• Margin At 14.1% Vs 18.8%

• Net Profit down 60.2% at Rs 49 crore  vs Rs 123 crore

 Lloyds Engineering Q2 Earnings (YoY)

• Revenue rose 74.2% at Rs 212 crore vs Rs 128 crore

• Ebitda rose 32.9% at Rs 31.8 crore vs Rs 24 crore

• Margin at 15% vs 19.7%

• Net Profit rose 48.8% at Rs 27.9 crore vs Rs 18.8 crore

Rossari Biotech Q2 Earnings (Consolidated, YoY)

• Revenue rose 3.1% at Rs 498 crore vs Rs 483 crore

• Ebitda rose 3.6% at Rs 65.8 crore vs Rs 63.5 crore

• Margin at 13.2% vs 13.1%

• Net profit rose 7.3% at Rs 35.3 crore vs Rs 32.9 crore

Netweb Technologies Q2 Earnings (YoY)

• Revenue rose 73.2% at Rs 251 crore vs Rs 145 crore

• Ebitda rose 85.5% at Rs 35.7 crore vs Rs 19.2 crore

• Margin at 14.2% vs 13.3%

• Net profit rose 70.2% at Rs 25.7 crore vs Rs 15.1 crore

 MCX Q2 Earnings (Consolidated, QoQ)

• Revenue rose 21.9% at Rs 286 crore vs Rs 234 crore

• Ebitda rose 35.4% at Rs 179 crore vs Rs 133 crore

• Margin at 62.8% vs 56.6%

• Net profit rose 38.5% at Rs 154 crore vs Rs 111 crore

PC Jeweller Q2 Earnings (Consolidated, YoY)

• Revenue rose 12.5% to Rs 505 crore vs Rs 449 crore

• Ebitda at Rs 86 crore vs Ebitda loss of Rs 53.43core

• Ebitda margin At 17%

• Net Profit At Rs 179 crore vs loss of Rs 138 crore

Punjab & Sindh Bank Q2 Earnings

• Net Profit rose 27% at Rs 240 crore vs Rs 189 crore

• Gross NPA At 4.21% Vs 4.72%

• Net NPA at 1.46% Vs 1.59%

• NII rose 29% Rs 873 crore vs Rs 675 crore

Tata Consumer Products Q2 FY25 (Consolidated, YoY)

• Revenue up 12.9% to Rs 4,214.45 crore versus Rs 3,733.78 crore. (Bloomberg estimate Rs 4,340 crore).

• Ebitda up 17% at Rs 626.29 crore versus Rs 537.09 crore. (Bloomberg estimate Rs 626 crore).

• Ebitda margin expanded to 14.9% compared to 14.4% (Bloomberg estimate 14.4%).

• Net profit up 0.9% at Rs 367.21 crore versus profit of Rs 363.92 crore (Bloomberg estimate Rs 343 crore).

L&T Finance Q2 FY25 (Consolidated, YoY)

• NII up 18% 2,178 crores versus 1,843 crore.

• Total Income up 15.6% at Rs 4,020 crore versus Rs 3,476 crore.

• Net profit up 18.6% at Rs 689 crore versus Rs 581 crore.

Jio Financial Services Q2 FY25 (Consolidated, YoY)

• Total Income up 14.1% at Rs 694 crore versus Rs 608 crore.

• Net Profit up 3.1% at Rs 689 crore versus Rs 668 crore.

ICICI Lombard Q2 FY25 (YoY)

• Net premium income 16.7% up at Rs 5,026 crore versus Rs 4,306 crore.

• Net profit 20.2% up at Rs 694 crore versus Rs 577 crore (Bloomberg estimates Rs 680 crore).

Jindal Saw Q2 FY25 (Consolidated, YoY)

• Revenue up 1.92% to Rs 5,571 crore versus Rs 5,466 crore (Bloomberg estimate 5,718 crore).

• Ebitda up 13.68% to Rs 914 crore versus Rs 804 crore (Bloomberg estimate Rs 848 crore).

• Ebitda margin up 169 bps to 16.4% versus 14.7% (Bloomberg estimate 14.8%).

• Net profit up 33.42% to Rs 475 crore versus Rs 356 crore (Bloomberg estimate Rs 417 crore).

Tejas Networks Q2 FY25 (Consolidated, YoY)

• Revenue at Rs 2,811 crore vs Rs 396 crore.

• Ebitda at Rs 535 crore vs Rs 12.9 crore.

• Margin at 19% vs 3.3%.

• Net profit of Rs 275 crore vs loss of Rs 12.6 crore.

Oberoi Realty Q2 FY25 (Consolidated, YoY)

• Revenue up 8.46% to Rs 1320 crore versus Rs 1217 crore (Bloomberg estimate Rs 1,292 crore).

• Ebitda up 27.78% to Rs 814 crore versus Rs 637 crore (Bloomberg estimate Rs 707 crore).

• Ebitda margin up 932 bps to 61.66% versus 52.34% (Bloomberg estimate 54.70%).

• Net profit up 28.88% to Rs 589 crore versus Rs 457 crore (Bloomberg estimate Rs 520 crore).

• Declared second interim dividend of Rs 2 per share.

Mastek Q2 FY25 (Consolidated, QoQ)

• Revenue up 6.7% at Rs 867 crore versus Rs 813 crore.

• EBIT up 18.7% at Rs 123 crore versus Rs 104 crore.

• Margin at 14.2% versus 12.8%.

• Net profit up 80% at Rs 129 crore versus Rs 71.5 crore.

Kesoram Industries Q2 FY25 (Consolidated, YoY)

• Revenue down 2% at Rs 58.7 crore vs Rs 60 crore.

• Ebitda loss at Rs 11.4 crore vs EBITDA loss of Rs 16.4 crore.

• Net loss of Rs 70 crore vs loss of Rs 58.7 crore.

Mangalore Refinery & Petrochemicals Q2 FY25 (Consolidated, YoY)

• Revenue up 26.01% to Rs 24,968 crore versus Rs 19,353 crore.

• Ebitda loss to Rs 474 crore versus profit of Rs 2,137 crore.

• Net loss to Rs 1,055 crore versus profit of Rs 1,597 crore.   

Ganesh Housing Corp Q2 FY25 (Consolidated, YoY)

• Revenue up 45.53% to Rs 237.22 crore versus Rs 163 crore.

• Ebitda up 67.26% to Rs 202.56 crore versus Rs 121.1 crore.

• Ebitda margin up 1109 bps to 85.38% versus 74.29%.

• Net profit up 83.72% to Rs 158 crore versus Rs 86 crore.

Spot gold price gained more after crossing the crucial $2,700-mark on Friday amid tensions in the middle east and US elections. As of 8:20 a.m., spot gold traded 0.25% higher to $2,728.91 an ounce.

• Kotak Mahindra Bank: The company signed a pact with Standard Chartered Bank in India to acquire its personal loan book. The bank will acquire Rs 4,100 crore of Standard Chartered Bank's personal loan book.

• JM Financial: RBI has lifted the restrictions it imposed on the Company’s JM Financial Products unit. The company can now provide loans against shares and debentures.

• Canara Bank: The Bank of Tanzania approved the sale of Canara Bank Tanzania's assets and liabilities to Exim Bank Tanzania and its eventual winding up.

• JSW Steel: The company will acquire Thyssenkrupp Electrical Steel India jointly with Japan's JFE Steel Corporation. The company will acquire Thyssenkrupp Electrical Steel India through a 50:50 joint venture with JFE Steel and licensing/transfer of associated tech.

• Wipro: The company acquired US-based Wipro Life Science Solutions as a step-down arm to explore new business opportunities in the life science segment.

• Dodla Dairy: The company has acquired 35.23 acres of land at Itkal Village, Maharashtra. This land acquisition is a step towards setting up an integrated plant in Maharashtra.

• Godrej Properties: The company acquired 3 acres of Land in Ahmedabad with an estimated booking value of Rs 1,300 crore.

• Refex Renewables: The company’s unit Refex Green Power received a 100 MW Solar Project from NTPC for Rs 480 crore.

• Garden Reach Shipbuilders & Engineers: The company received a contract worth Rs 491 crore for one acoustic research ship from the ministry of Defence.

• Moil: The company signed a JV agreement with Madhya Pradesh State Mining Corp for exploration and mining activities in Madhya Pradesh.

At 7:47 a.m., Brent Crude futures were 0.1% at $72.96 a barrel and WTI Crude was also 0.1% down at $69.15 a barrel.

After People's Bank Of China cut one and five year loan prime rates by 25 basis points to 3.1% and 3.6%, respectively, indices in China fell. CSI 300 traded 0.3% down at 3,914.76 and Hong Kong's Hang Seng fell 0.2% to 20,760.78 as of 7:20 a.m.

At the same time, Japan's Nikkei was flat at Australia's ASX 200 rose 0.6% as market participants wait for Japan's key data releases this week along with the outcome general elections.

In the US, Dow Jones and S&P 500 rose 0.09% and 0.40% respectively to close at 43,2275.91 and 5,864.67 on Friday. Nasdaq Composite was up 0.15% at 19,884.81. Both S&P 500 and Dow Jones hit their lifetime highs of 5,872.17 points and 43,325.09 points respectively. Market will now track more corporate earnings.

The GIFT Nifty traded at 24,929.50 up by 52.5 points, or 0.2% as of 06:51 a.m. Among others, HDFC Bank, Tata Consumer, Kotak Bank share price will remain in focus on Monday.

On Friday, the NSE Nifty 50 and BSE Sensex snapped a three-session losing streak on Friday, tracking a rise in the shares of ICICI Bank Ltd. and Axis Bank Ltd.

The Nifty 50 ended 104.20 points, or 0.42%, higher at 24,854.05, and the Sensex ended 218.14 points, or 0.27%, higher at 81,224.75.

Overseas investors, commonly known as foreign portfolio investors, remained net sellers of Indian equities for the 15th consecutive session on Friday. The FPIs offloaded stocks worth Rs 5,485.7 crore, while domestic institutional investors bought stocks worth Rs 5,214.8 crore, according to provisional data from the National Stock Exchange.

The Indian currency recorded a fresh closing low against the US dollar on Friday. The domestic currency closed flat at 84.0737 on Friday, according to Bloomberg data.