War spooks market but bulls take charge | Weekly Update October 11th
Hello Readers!
This week has brought a significant loss as we mourn the passing of the esteemed Indian icon, Ratan Tata. Yet, amidst this sorrow, there could be some silver linings to explore. But before we dive into them, let’s take a moment to review some weekly market highlights first.
🧾In this Article
Cover story: War spooks market but bulls take charge
📈 Weekly Market Wrap-up
The Nifty 50 closed at 24,964.25, down 1.1% from the previous week. The SENSEX index experienced a decline of 1.4% closing at 81,381.36 at the end of the week ending Friday, October 11, 2024.
| Index | Change (%) |
| Nifty 50 | -3.9 |
| Nifty Bank | -5.4 |
| Nifty Midcap Select | -3.4 |
| Nifty 100 | -4.4 |
| Nifty Midcap 50 | -3.3 |
| Nifty Midcap 100 | -3.3 |
| Nifty Smallcap 50 | -2.3 |
| Nifty Smallcap 100 | -2.6 |
| Nifty IT | -0.6 |
| Nifty Pharma | -0.7 |
| Nifty PSU Bank | -1.3 |
| Nifty Private Bank | -6.1 |
Sector Spotlight
The consumer durables sector saw a slight decrease of 0.38%, followed by the fast-moving consumer goods (FMCG) sector, which declined by 1.73%. The capital goods sector experienced a modest gain of 1.82%, while the healthcare sector rose by 2.02%. The information technology (IT) sector outperformed, rising by 1.1%.
Nifty 100 Top gainers
- Divis Laboratories Ltd. = 6,142.25 ↑13.1%
- Trent Ltd. = 8,234.95 ↑10.0%
- Siemens Ltd. = 7,749.90 ↑5.5%
- ABB India Ltd. = 8,553.70 ↑5.5%
- Samvardhana Motherson International Ltd. = 212.82 ↑4.4%
Nifty 100 Top losers
- Avenue Supermarts Ltd. = 4,572.70 ↓7.5%
- Shree Cement Ltd. = 24,337.05 ↓7.3%
- Nestle India Ltd. = 2,511.80 ↓6.1%
- Pidilite Industries Ltd. = 3,110.20 ↑5.7%
- Britannia Industries Ltd. = 5,978.50 ↓5.6%
FII and DII Activity:
Foreign Institutional Investors (FIIs) were net sellers for the week, with a total net outflow of –₹40,511.50 crores. Domestic Institutional Investors (DIIs) were purely net buyers the entire week, investing a good ₹33,074.39 crores in Indian equities.
| Date | FII Net Activity in crores | DII Net Activity in crores |
| 30-Sep-24 | -9,791.93 | 6,645.80 |
| 1-Oct-24 | -5,579.35 | 4609.55 |
| 2-Oct-24 | ||
| 3-Oct-24 | -15,243.27 | 12913.96 |
| 4-Oct-24 | -9896.95 | 8905.08 |
| Total | -40,511.50 | 33074.39 |
Global Gossip
The DOW increased by 39.75 points to close at 42,252.75, representing a 0.09% increase. The NASDAQ gained 18.26 points to reach 18,137.85, a 0.10% increase. The S&P 500 rose by 12.90 points to 5,751.07, a 0.22% increase.
Meanwhile, the FTSE decreased by 40.13 points to 8,280.63, a -0.48% decline. The DAX fell by 252.70 points to 19,120.93, a -1.89% decline. The CAC dropped by 250.43 points to 7,541.36, a -3.21% decline. The NIKKIE decreased by 1,193.94 points to 38,635.62, a -3.00% decline.
On the other hand, there were some positive developments in Asia. The HANGSENG increased by 2,104.57 points to 22,736.87, a 10.20% increase. The SHANGHAI rose by 248.97 points to 3,336.50, an 8.06% increase.
Rupee Report
The Indian Rupee (INR) weakened slightly against the US Dollar (USD) last week. The rupee closed at ₹83.98, compared to the previous week’s pre-close of ₹83.66. This represents a depreciation of 0.32%.
Gold Surges
As of October 5, 2024, gold prices experienced a slight decline. The price closed at $2,652.75, down from the previous week’s closing price. This represents a decrease of $3.01 or 0.11%. Over the past week, gold prices have fluctuated between a low of $2,632.63 and a high of $2,669.68. The 52-week range for gold prices is from $1,811.03 to $2,670.06. Despite the weekly decline, gold prices have shown a positive trend over the past week, with a return of 2.37%.
🍟 Quick Bites
📉 Equity mutual fund investments declined 10% monthly to ₹34,419.26 crore in September, while SIP investments increased 4.08% to a record high of ₹24,508.73 crore, leading to a total of 9.87 crore SIP accounts.
📊 US inflation decreased to 2.4% in September from 2.5% in August, but core inflation rose to 3.3% from 3.2%.
🚗 Hyundai India set its IPO price band at ₹1,865-1,960 per share, opening for subscription from October 15 to 17.
🏦 The RBI maintained the repo rate at 6.5% for the tenth consecutive time and kept the GDP growth forecast for FY25 at 7.2%.
📉 Indian auto sales dropped 9.26% YoY in September, with 2-wheeler, personal vehicle, and commercial vehicle sales declining, while 3-wheeler and tractor sales rose.
🔎 Stocks in news
📈 TCS announced a 5% YoY increase in net profit to ₹11,909 crore and declared an interim dividend of ₹10 per share.
💰 HDFC Life raised ₹1,000 crore through a 10-year debt issue at an 8.5% interest rate.
📊 IREDA reported a 36.18% YoY increase in net profit to ₹387.75 crore.
🏦 Bank of Maharashtra’s gross loans rose 18.73% to ₹2.17 lakh crore, and deposits increased 15.46% to ₹2.76 lakh crore.
💊 Zydus Lifesciences received US FDA approval for the schizophrenia drug ‘Paliperidone’.
📦 NBCC and its subsidiary received orders worth ₹1,000 crore and ₹198 crore, respectively.
🏥 Fortis Healthcare raised ₹1,550 crore through a debt issue.
💸 Vedanta was fined ₹102 crore by Tuticorin Customs.
📈 Varun Beverages approved raising ₹7,500 crore through a QIP.
🚗 Tata Tech formed a joint venture with BMW Group to develop automotive software.
⚡ Torrent Power secured a 40-year contract for 2,000 MW of energy storage capacity.
🛍️ Patanjali Foods received CCI approval to acquire Patanjali Ayurved’s home and personal care business.
💳 Fortis Healthcare approved raising ₹1,500 crore through non-convertible debentures.
✈️ SpiceJet settled a $131.85 million dispute with Babcock & Brown Aircraft Management for $22.5 million.
💎 Trent launched a new lab-grown diamond brand ‘Pome’.
✈️ SpiceJet will add 10 planes to its fleet by 15 November.
📉 Tata Motors’ global wholesales fell 11% to 3,04,189 units in the July-Sept quarter.
⚖️ Ola Electric received a show cause notice from the Central Consumer Protection Authority.
🏢 Embassy REIT raised ₹2,000 crore through a debt issue.
🏨 ITC got NCLT approval to demerge its hotel business.
🚛 Ashok Leyland received an order for 180 electric trucks.
🌐 Airtel launched ‘Airtel Secure Internet’.
📈 Bank of India reported a 14.94% YoY rise in domestic loans and deposits.
💰 Bank of Maharashtra raised ₹3,499 crore through a QIP.
💍 Titan’s jewellery business grew 26% YoY.
📊 Federal Bank reported a 19.3% YoY rise in gross loans and deposits.
Sustainability news:
🌬️ Suzlon secured a 400 MW wind energy order from Jindal Renewables.
🚀 IPO corner
Upcoming SME IPOs:
- Hyundai Motor India Limited IPO (Oct 15, 2024 – Oct 22, 2024)
- Lakshya Powertech Limited IPO (Oct 16, 2024 – Oct 23, 2024)
- Freshara Agro Exports Limited IPO (Oct 17, 2024 – Oct 24, 2024)
News:
- 📉 Hyundai Motor India’s IPO grey market premium (GMP) plummeted 75% in two weeks following the announcement of details regarding its massive public offering.
- 🌍 Global investment firms BlackRock Inc., Singapore’s sovereign wealth fund GIC Pte, and Capital Group have reportedly expressed interest in purchasing shares in Hyundai Motor India Ltd.’s upcoming IPO.
- 🏢 OYO announced five new appointments to its leadership team, including Sonal Sinha as Chief Operating Officer (COO) for International and Rachit Srivastava as COO of OYO Vacation Homes in Europe.
War spooks market but bulls take charge
The ongoing Israel-Iran conflict has sent ripples through the global markets, including India. While the tensions in the Middle East have raised concerns about potential disruptions to trade and oil supplies, Indian investors have shown resilience, with the stock market demonstrating a surprising strength.
The Direct Impact on Indian Businesses
Several Indian companies, particularly those with significant operations in the Middle East, are directly affected by the conflict. Oil and gas companies like Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), and Hindustan Petroleum Corporation Limited (HPCL) are particularly vulnerable due to the potential rise in crude oil prices. Additionally, infrastructure companies such as Adani Ports and Larsen & Turbo, which have business interests in the region, could also face challenges.
IT Companies and the Middle East Connection
Surprisingly, IT giants like Tata Consultancy Services (TCS), Tech Mahindra, Infosys, and Wipro have also been impacted by the crisis. These companies have a significant presence in Israel, and the ongoing conflict could affect their business operations and revenue streams.
The Bullish Sentiment Prevails
Despite the challenges posed by the Middle East crisis, Indian investors have remained optimistic. The stock market has shown remarkable resilience, with the bulls taking charge. This positive sentiment can be attributed to several factors, including India’s strong economic fundamentals, the government’s proactive measures, and the overall resilience of the Indian corporate sector.
Key Takeaways
- The Israel-Iran conflict has created uncertainty in the global markets.
- Indian companies with significant exposure to the Middle East are directly affected.
- Oil and gas companies, as well as infrastructure and IT firms, are particularly vulnerable.
- Despite the challenges, Indian investors have shown resilience, and the stock market has remained strong.
Wrapping up
While the Middle East crisis continues to unfold, it’s important for investors to stay informed and monitor the situation closely. The potential impact on Indian businesses and the overall economy remains uncertain. However, the resilience shown by the Indian stock market suggests that investors are confident in the country’s ability to weather the storm.
Upcoming key financial events for the week:
| Date | Event |
| 11-Oct-24 | USD GDP m/m USD Core PPI m/m INR CPI (YoY) (Sep) INR Industrial Production (YoY) (Aug) |
| 15-Oct-24 | GBP Claimant Count Change INR WPI Inflation (YoY) (Sep) |
| 16-Oct-24 | GBP CPI y/y |
| 17-Oct-24 | EUR Monetary Policy Statement
USD Core Retail Sales m/m |
| 18-Oct-24 | GBP Retail Sales m/m |
