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The key equity indices continued to trade with minor losses in morning trade. The Nifty hovered below the 19,600 level. FMCG stocks declined after rising in the past trading session.
The barometer index, the S&P BSE Sensex, was down 198.13 points or 0.30% to 65,431.11. The Nifty 50 index lost 71.45 points or 0.36% to 19,553.25.
In the broader market, the S&P BSE Mid-Cap index shed 0.38% while the S&P BSE Small-Cap index added 0.19%.
The market breadth was strong. On the BSE, 1,829 shares rose and 1,543 shares fell. A total of 167 shares were unchanged.
Buzzing Index:
The Nifty FMCG index declined 1.01% to 51,984.90. The index rose 0.14% in the past trading session.
ITC (down 2.09%), Hindustan Unilever (down 1.9%), Dabur India (down 1.44%), Varun Beverages (down 1.06%), United Spirits (down 0.73%), Marico (down 0.52%), Britannia Industries (down 0.48%), Tata Consumer Products (down 0.27%) slipped.
On the other hand, United Breweries (up 3.38%), Nestle India (up 2.03%) and Colgate-Palmolive (India) (up 1.56%) edged higher.
ITC shed 2.09%. The diversified conglomerate reported 10.3% rise in net profit to Rs 4,927 crore in Q2 FY24 from Rs 4,466 crore in Q2 FY23. Net revenue increased by 2.4% YoY to Rs 16,357 crore during the period under review.
The FMCG - Cigarettes segment revenue rose by 10.1% to Rs 7,658 crore. Excluding excise duty/NCCD on sales, the net revenue growth was 8.5% on YoY basis. The company commented that the Sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes was largely mitigated through improved mix, strategic cost management and calibrated pricing.
The revenue of the Hotels segment grew by 21.2% YoY to Rs 649 crore in Q2 FY24. The strong performance was driven by retail and MICE segments. Segment EBITDA margin expanded by 170 bps YoY to 30.7% driven mainly by higher RevPAR, curated packages, finest F&B offerings and strategic cost management initiatives.
Stocks in Spotlight:
Equitas Small Finance Bank (Equitas SFB) gained 0.49% after the bank's net profit jumped 70.2% to Rs 198.14 crore in Q2 FY24 as against Rs 116.42 crore recorded in Q2 FY23.
Mphasis fell 2.42% after the company's consolidated net profit dropped 1.04% to Rs 391.94 crore. Revenue from operations increased marginally year on year to Rs 3,276.50 crore in Q2 FY24 over Q1 FY24.
ITC fell 1.29%. The company reported 10.3% increase in consolidated net profit to Rs 4927 crore on 2.4% increase in net revenue to Rs 16357 crore in Q2 FY24 over Q2 FY23.
Hindustan Unilever (HUL) declined 1.84%. The FMCG major reported 3.86% increase in consolidated net profit to Rs 2,717 crore on 3.53% increase in revenue from operations to Rs 15,027 crore in Q2 FY24 over Q2 FY23. Hindustan Unilever (HUL) delivered Underlying Volume Growth (UVG) of 2% in Q2 FY24.
Zomato rose 0.76%. Softbank is reportedly planning to sell around 1.1% stake in Zomato and mop up around Rs 1,000 crore via the block deal route.
Tata Motors advanced 1.05% after the company and Freight Commerce Solutions (freight Tiger) have signed a securities subscription agreement (SSA) and a shareholders agreement (SHA) for the acquisition of 26.79% stake in freight Tiger for a consideration of Rs 150 crore. The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose 0.04% to 7.372 from its previous close of 7.369.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1950, compared with its close of 83.1300 during the previous trading session.
MCX Gold futures for 5 December 2023 settlement advanced 0.45% to Rs 60,591.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 106.25.
The United States 10-year bond yield fell 0.92% to 4.945.
In the commodities market, Brent crude for December 2023 settlement rose 0.91 cents or 0.99% to $93.29 a barrel.
Global markets:
Asian stocks are trading lower Friday, extending losses from Thursday's broad sell-off. China's central bank kept its benchmark loan rates unchanged for October. The People's Bank of China kept its one-year loan prime rate unchanged at 3.45%. The five-year benchmark loan rate was held at 4.2%.
US stocks ended lower on Thursday as Powell's comments and rising bond yields weighed on markets. U.S. Federal Reserve Chair Jerome Powell said inflation was still too high and would likely require lower economic growth. Powell also added that monetary policy was not yet too tight. The benchmark 10-year Treasury yield traded as high as 4.996% on Thursday, inching closer to the well-followed 5% level that was last crossed in 2007.
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