Domestic equity benchmarks ended marginally lower on Monday, after a volatile session. Despite opening on a positive note, the Nifty 50 index struggled to maintain gains amid selling pressure in several sectors. Auto stocks outperformed, while metals, realty, and IT shares faced selling. The broader market indices also saw declines. The indices have been consolidating amid a confluence of factors, including China's stimulus expectations, ongoing FII selling, geopolitical tensions, and disappointing Q2 earnings.

The barometer index, the S&P BSE Sensex declined 73.48 points or 0.09% to 81,151.27. The Nifty 50 index declined 72.95 points or 0.29% to 24,781.10.

Kotak Mahindra Bank (down 4.29%), Bajaj Finserv (down 3.05%) and Infosys (down 1.40%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 1.63% and the S&P BSE Small-Cap index declined 1.51%.

The market breadth was weak. On the BSE, 1123 shares rose and 2914 shares fell. A total of 138 shares were unchanged.

Economy:

India's net direct tax collections jumped by 182.02% over last decade to Rs 19.60 lakh crore in FY24, from 6.95 lakh crore in FY15, following strong growth in personal income tax, the latest time series data from the Income Tax Department showed. Personal income tax collections zoomed up nearly 300% to Rs 10.45 lakh crore, from 2.65 lakh crore in FY15, outpacing corporate tax collections, which rose by 112.85% to Rs 9.11 lakh crore from Rs 4.28 lakh crore in FY15.

Numbers to track:

The yield on India's 10-year benchmark federal paper advanced 2.11% to 6.953 as compared with previous close 6.809.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0750, compared with its close of 84.0700 during the previous trading session.

MCX Gold futures for 31 October 2024 settlement rose 0.62% to Rs 78,720.

The United States 10-year bond yield rose 1.31% to 4.129.

In the commodities market, Brent crude for December 2024 settlement added $1.28 or 1.75% to $74.34 a barrel.

Global Market:

European shares declined on Monday as investors remained cautious amid elevated Middle East tensions. German Producer price index fell to 1.4% YoY in September 2024, due to significantly lower energy prices, the federal statistics office said on Monday.

Asian stocks ended mixed on Monday as traders digested China's latest loan prime rate cut and looked ahead to Japan's upcoming general election. The People's Bank of China lowered both the one-year and five-year LPRs by 25 basis points, signaling a continued effort to stimulate the economy.

Other key economic indicators this week include Tokyo's October inflation data and South Korea's preliminary third-quarter GDP figures. These releases will provide insights into the region's economic health and potential policy responses.

Global financial markets remain influenced by a complex interplay of factors. On one hand, investors are closely watching the economic prospects of the United States and China. On the other, geopolitical tensions in the Middle East and other regions continue to create uncertainty.

In the United States, major stock indices closed at record highs on Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains, driven by strong earnings reports and optimism about the tech sector. Notably, Netflix's post-earnings surge contributed significantly to the Nasdaq's performance.

The broader market benchmark, the S&P 500, advanced 0.40% on Friday. The Dow Jones Industrial Average gained 0.09%, while the Nasdaq Composite closed up 0.63%. This marks the sixth consecutive week of gains for all three major indices, the longest such streak since late 2023.

Stock in Spotlight:

HDFC Bank rallied 2.83% after the company reported 5.29% increase in standalone net profit to Rs 16,820.97 crore in Q2 FY25 as compared with Rs 15,976.11 crore in Q2 FY24. Total income rose 9.05% YoY to Rs 85,499.64 crore during the quarter as compared with Rs 78,406.23 crore in Q2 FY24.

Kotak Mahindra Bank slumped 4.29%. The bank's standalone net profit rose 4.78% to Rs 3,343.72 crore on 17.71% rise in total income to Rs 15,900.46 crore in Q2 FY25 over Q2 FY24. The bank reported 80% jump in provision & contingencies to Rs 660 crore in Q2 FY25 from Rs 366 crore in Q2 FY24.

RBL Bank tumbled 14.21% after the bank's net profit fell 24.3% to Rs 222.52 crore on 20.1% increase in total income to Rs 4458.29 crore in Q2FY25 over Q2FY24.

JM Financial declined 7.28%. The Reserve Bank of India (RBI) announced the lifting of restrictions imposed by it on JM Financial Products, a material subsidiary of the company. JM Financial Products has now been permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable laws and regulations.

Tejas Network spurted 10.82% after the company reported consolidated net profit of Rs 275.18 crore in Q2 September 2024 as against net loss of Rs 12.64 crore in Q2 September 2023. Net sales soared 570.58% to Rs 2655.16 crore in Q2 September 2024 over Q2 September 2023.

Tech Mahindra rose 0.78% after the company's consolidated net profit jumped 46.81% to Rs 1,250.1 crore on 2.36% rise in revenue from operations to Rs 13,313.2 crore in Q2 FY25 over in Q1 FY25.

IndiaMART InterMESH fell 16.87% after a foreign broker downgraded the stock from 'buy' to 'underperform', reducing its target price to Rs 2,540 per share.

Meanwhile, another foreign broker maintained a 'neutral' stance with a target price of Rs 3,150, pointing to weak collections and low subscriber additions as major factors dampening near-term prospects.

On a standalone basis, IndiaMART's revenue from operations increased to Rs 332 crore as compared to Rs 281 crore last year, representing a YoY growth of 18%. Net profit for the quarter was at Rs 127 crore (+53% YoY), representing margin of 32% (vs. 26% last year).

IPO Update:

The initial public offer (IPO) of Waree Energies received bids for 6,92,83,467 shares as against 2,10,79,384 shares on offer, according to stock exchange data at 17:00 IST on Monday (21 October 2024). The issue was subscribed 3.29 times.

The issue opened for bidding on Monday (21 October 2024) and it will close on Wednesday (23 October 2024). The price band of the IPO is fixed between Rs 1,427 to Rs 1,503 per share. An investor can bid for a minimum of 9 equity shares and in multiples thereof.

Deepak Buidlers & Engineers India's IPO received bids for 3,69,59,389 shares as against 89,67,061 shares on offer, according to stock exchange data at 17:00 IST on Monday (21 October 2024). The issue was subscribed 4.12 times.

The issue opened for bidding on Monday (21 October 2024) and it will close on Wednesday (23 October 2024). The price band of the IPO is fixed between Rs 192 to Rs 203 per share. An investor can bid for a minimum of 73 equity shares and in multiples thereof.

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