Market Update: BSE Sensex and Nifty50 Face Significant Losses

Market Update – Indian benchmark indices continued their downward trajectory on Friday, heavily impacted by persistent Foreign Institutional Investor (FII) selling, which has dampened sentiments at Dalal Street. The BSE Sensex fell by 662.87 points, or 0.83%, to close at 79,402.29, while the NSE’s Nifty50 dropped by 218.60 points, or 0.90%, finishing at 24,180.80. Investors are now focused on several key stocks and events that may influence market movements ahead of Monday’s opening bell on October 28, 2024.

Key Earnings Announcements Today

A slew of companies will report their Q2 results today, including industry giants such as Bharti Airtel, Sun Pharma, Adani Power, Indian Oil Corporation, Ambuja Cements, Punjab National Bank, Suzlon Energy, Bharat Heavy Electricals, Bharti Hexacom, Indian Bank, JSW Infrastructure, Motilal Oswal Finance Services, Federal Bank, Tata Technologies, and LIC Housing Finance. This influx of earnings reports is expected to provide critical insights into the financial health of these firms and could impact market sentiment significantly.

Corporate Actions to Watch

Several corporate actions will take place today, affecting stock prices. Reliance Industries will trade ex-bonus, while Dr. Reddy’s Laboratories will trade ex-split. Additionally, shares of Elecon Engineering Company, ICICI Lombard General Insurance Company, and KSolves India will trade ex-dividend, which could influence investor decisions.

IPO Debuts: Waaree Energies and Deepak Builders

Waaree Energies, a solar power company, is set to debut on Dalal Street on Monday after raising ₹4,321.44 crore through its Initial Public Offering (IPO), which was oversubscribed by 79.44 times. The shares were sold at ₹1,503 each for a lot size of nine shares.

Similarly, Deepak Builders & Engineers India will also make its market debut on Monday after raising ₹260.04 crore via its IPO, which was open for bidding between October 21-23. The shares were priced at ₹203 each, with an overall subscription of 41.5 times.

Major Financial Updates

ICICI Bank

ICICI Bank reported a 14.5% year-on-year increase in its standalone net profit for Q2FY25, amounting to ₹11,746 crore. Its Net Interest Income (NII) rose by 9.5% year-on-year to ₹20,048 crore, while the Net Interest Margin (NIM) stood at 4.27%.

Axis Bank

Axis Bank has received a show-cause notice from SEBI along with its subsidiaries, Axis Securities and Axis Capital. The bank is currently reviewing the notice’s contents and plans to respond to SEBI, asserting that all transactions were conducted with the necessary regulatory approvals.

YES Bank

In contrast, YES Bank reported a remarkable 145% year-on-year increase in standalone net profit for the September 2024 quarter, totaling ₹553 crore. Its NII for Q2FY25 reached ₹2,200 crore, up 14.3% year-on-year, while the NIM remained stable at 2.4%.

Coal India

However, Coal India, the government-owned mining giant, experienced a 22% year-on-year decline in its consolidated net profit for the quarter ending September 30, 2024, reporting ₹6,289 crore. Revenue from operations for Q2FY25 stood at ₹30,673 crore, down 6.4% year-on-year, with EBITDA dropping 14.2% year-on-year to ₹8,617.1 crore, resulting in a contraction of margins to 28.1%.

Strategic Moves and Investments

Avenue Supermarts

Avenue Supermarts, the operator of DMart, has successfully acquired a 26% stake in FP Ampere Energy, a wholly-owned subsidiary of Fourth Partner Energy, for ₹2 crore. This acquisition positions FP Ampere as an associate company of Avenue Supermarts.

Bharat Petroleum Corporation

The board of Bharat Petroleum Corporation has approved a joint venture agreement with Oil India to develop a city gas distribution (CGD) project in Arunachal Pradesh, with a 50:50 shareholding structure in the joint venture.

InterGlobe Aviation

Despite reporting a loss of ₹987 crore in the September 2024 quarter, InterGlobe Aviation, the parent company of IndiGo, posted a revenue from operations of ₹16,970 crore, reflecting a 16% year-on-year increase. However, EBITDA fell slightly to ₹2,434 crore, with margins contracting by 210 basis points to 14.3%.