Stock Market Today, October 17, 2024:
Indian equity indices, Nifty50 and BSE Sensex, are poised to open higher, supported by favorable global cues. As of 6:30 AM, GIFT Nifty Futures were trading 14 points higher at 25,069, hinting at a flat to positive start for the Indian markets.
Domestic Triggers:
Investors are eagerly awaiting the Q2 results from key companies, including Infosys, Wipro, Axis Bank, Nestle India, LTIMindtree, and Tata Chemicals, among others. Additionally, Bajaj Auto’s Q2 earnings will be closely scrutinized. The company reported a 31.4% decline in consolidated net profit after tax (PAT) to ₹1,385.4 crore for Q2 FY25, despite a 22.2% rise in revenue to ₹13,247.3 crore during the same period.
Key Results Expected Today:
- Infosys:
India’s second-largest IT firm will announce its Q2 FY25 results today. Analysts expect Infosys to report a strong performance, driven by large deal ramp-ups and a recovery in the banking and financial services sector. Infosys has been a key player among Tier-I IT peers, and market participants will look for further guidance on growth strategies and global expansion. - Axis Bank:
Axis Bank will also report its Q2 results, with brokerages expecting a modest year-on-year (YoY) net profit growth driven by improved loan growth and other income sources. Axis Bank’s performance will offer insights into the health of the banking sector amid economic recovery. - Nestle India:
Nestle India is expected to report a 7-8% YoY growth in adjusted profit, with analysts projecting earnings of around ₹876 crore for the July-September quarter, compared to ₹805.5 crore in the same period last year. Market participants are keenly watching the company’s performance as a bellwether for the FMCG sector.
Wall Street Action:
On Wednesday, the Dow Jones Industrial Average soared to a record high, closing above 43,000 points for the third time in four sessions, gaining 0.79%. The S&P 500 rose 0.47%, while Nasdaq advanced 0.28%. U.S. markets benefited from easing inflationary concerns and optimism over upcoming economic data, including jobless claims and retail sales figures for September, which will be released today.
Asia-Pacific Markets:
Following Wall Street’s lead, Asia-Pacific markets opened on a positive note. Japan’s Nikkei 225 gained 0.27%, Australia’s S&P/ASX 200 rose 0.85%, and South Korea’s Kospi climbed 0.17%. Investors in the region are also hopeful for potential stimulus measures from China to support its real estate sector, which could bolster regional growth.
Geopolitical Developments:
Amid rising geopolitical tensions, the U.S. is deploying its THAAD anti-missile system to Israel following an Iranian missile attack. Although tensions in the Middle East remain elevated, Israel has reassured the U.S. that it will refrain from targeting Iranian nuclear or oil facilities.
Oil Prices:
Crude oil prices extended their decline on Wednesday. U.S. West Texas Intermediate (WTI) crude futures dropped below $71 per barrel, settling at $70.39, while Brent crude for December delivery dipped to $74.22 per barrel. The ongoing geopolitical developments in the Middle East, especially Israel’s decision not to target Iran’s oil infrastructure, are contributing to easing supply concerns, keeping oil prices under pressure.
Other Global Triggers:
U.S. Treasury yields saw a decline, boosting gold prices. Investors are now speculating that major central banks, including the European Central Bank and Bank of England, may soon cut interest rates amid cooling inflation rates.
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Gold Prices:
Gold prices inched closer to record highs on Wednesday, with spot gold rising 0.6% to $2,676.03 per ounce, nearing its all-time high of $2,685.42. U.S. gold futures also increased by 0.5% to $2,692.60. Falling bond yields and expectations of rate cuts have strengthened the demand for gold as a safe-haven asset.
IPO Corner:
Hyundai Motor India’s (HMIL) IPO continued to garner interest, with a subscription rate of 42% on Day 2. The IPO has received bids for 41.74 million shares worth ₹8,180 crore, with qualified institutional buyers (QIB) subscribing to 58% of the offer, high-net-worth individuals (HNIs) at 26%, and retail investors at 38%.
Pranik Logistics Limited, an SME IPO, is set to debut on the bourses today, while Freshara Agro Exports Limited (another SME IPO) opens for subscription. Lakshya Powertech Limited IPO continues its Day 2 of subscription.
FII and DII Activity:
On October 16, foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹3,435.94 crore, while domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹2,256.29 crore.
Market Outlook:
On Wednesday, the benchmark indices ended in the red. The BSE Sensex fell 318.76 points to 81,501.36, while the NSE Nifty50 closed 86.05 points lower at 24,971.30. Analysts expect the market to remain range-bound, with support for Nifty at 24,900 and resistance at 25,000. Traders are advised to focus on level-based strategies in the short term.
