Market recovers amid mixed earnings; Hyundai listing in spotlight

The market has once again shown a tendency to recover from correction thresholds, and this week’s corporate earnings will provide insights into the market trend. However, expectations for these results appear muted.

HDFC Bank and Kotak Mahindra Bank, which released their earnings over the weekend, reported only a 5% increase in net profit, casting a shadow over future prospects. In contrast, Tech Mahindra performed better in the second quarter, raising hopes for future growth.

The listing of Hyundai India and its subsequent movements will also impact the market. Institutional investors stepped in to support the Hyundai IPO when retail investors hesitated, although the gray market premium dipped below 1%, reflecting retail investors’ concerns about high asking prices.

Global markets are showing signs of continued strength, with more stimulus plans expected to be announced in China. Comments from the finance minister and central bank governor have stirred the metals market, while crude oil prices have declined due to reduced demand. Gold closed above $2,700 per ounce, indicating further potential for increases.

In the derivatives market, Gift Nifty rose to 2,4895 this morning, suggesting that the Indian market will remain stable today. 

European markets closed modestly higher on Friday, marking two consecutive weeks of gains, driven by technology and luxury sectors. Shares of Kering, the owner of Gucci, surged by 5%.

In the US, markets closed slightly higher on Friday, with the Dow Jones and S&P 500 hitting new record highs, ending six consecutive weeks of gains—the longest streak this year. Notably, Netflix saw an 11% jump in the third quarter, exceeding profit and revenue expectations, while Procter & Gamble also performed well. So far, over 70 companies in the S&P 500 have reported, with 75% surpassing profit and revenue expectations, which is likely to support the ongoing bull run.

On Friday, the Dow Jones rose by 36.86 points (0.09%) to close at 43,239.10. The S&P 500 increased by 23.20 points (0.40%) to finish at 5,864.67, and the Nasdaq gained 115.94 points (0.63%) to end at 18,489.55.

US futures are also showing slight gains this morning, with the Dow up 0.11%, the S&P up 0.14%, and the Nasdaq up 0.19%. The yield on the US 10-year Treasury note rose to 4.083%.

On Friday, the Indian market began trading lower but made a strong recovery after two hours, following the recent pattern of bouncing back before entering corrections. All sectors ended positively, except for IT, FMCG, and Oil & Gas.

Mindtree dropped by 6.06%, Infosys by 4.22%, L&T Technology Services by 1.74%, and Tech Mahindra by 0.82%. Conversely, Wipro, which announced strong results and a bonus issue, saw a rise of up to 5%, closing with a gain of 3.6%.

In the FMCG sector, Procter & Gamble fell by 3.54%, Britannia by 1.98%, and Nestlé by 1.21%. Hindustan Unilever and ITC also experienced declines.

The domestic supply of natural gas to urban companies at regulated prices has been cut by 20%, impacting Mahanagar Gas and Indraprastha Gas, both of which closed down by around 10%. Gujarat Gas and Adani Total Gas also saw declines.

Banking, financial, and metal indices rose by over 1.5% each, with Axis Bank surging by 5.76% following strong third-quarter results. ICICI Bank and Shriram Finance also posted gains of 2.90% and 2.80%, respectively.

Manappuram General Finance shares fell by over 15% after the Reserve Bank prohibited its subsidiary from lending.

Foreign investors sold a net ₹5,485.70 crore in the cash market on Friday, bringing this month’s total foreign sales to a record ₹80,217.90 crore. Domestic funds and institutions, however, made net purchases of ₹5,214.83 crore, totaling ₹74,176.20 crore for the month.

On Friday, 1,352 shares advanced while 1,419 declined on the NSE. The BSE saw 1,839 shares rise and 2,110 fall.

The Sensex gained 218.14 points (0.27%) to close at 81,224.75, while the Nifty rose by 104.20 points (0.42%) to finish at 24,854.05. The Bank Nifty jumped by 805.40 points (1.57%) to close at 52,094.20.

The mid-cap index increased by 0.31% to close at 58,649.12, and the small-cap index rose by 0.06% to finish at 19,077.80.

Investors are cautious, believing that Friday’s rally is not a sign of strong bulls. More than 400 companies are set to release their results this week, including ICICI Bank, Bajaj Finance, ITC, Hindustan Unilever, Coal India, JSW Steel, and BPCL. The upcoming listing of Hyundai India will also play a significant role in market sentiment.

Gold has recently reached new daily records, with mixed interpretations surrounding interest rate cuts and uncertainties related to the US presidential election pushing prices above $2,700 per ounce. Some analysts believe gold could target $3,000 by 2025, as it has surged significantly this year—an increase of 39.73% with an annual rise of $773.90 per ounce.

On Friday, gold peaked at $2,723 per ounce in the spot market, closing at $2,721.80. The December contract rose to $2,728.

Gold update

In Kerala, gold prices surged by ₹640 on Friday to reach a record high of ₹57,920, followed by a further increase of ₹320 on Saturday to ₹58,240.

Silver rose by $2.02 to $33.68 per ounce on Friday, showing an increase of over 5% last week.

The dollar index closed slightly lower on Friday at 103.46, while the Indian rupee remained stable at ₹84.07, with the Reserve Bank heavily intervening in the market.

Crude oil prices have fallen again, with Brent crude at $73.06, WTI crude at $69.22, and UAE’s Murban crude at $72.93.

Cryptocurrencies are also trending upward, with Bitcoin surpassing $69,400 and Ether rising to $2,755.

Industrial metals gained on Friday, buoyed by announcements from China’s finance minister regarding additional measures for the housing sector and hints of further interest rate cuts from the central bank. Copper rose by 1.26% to $9,502.86 per tonne, while aluminium increased by 1.43% to $2,590.10 per tonne. Tin rose by 0.62%, zinc by 2.47%, and nickel by 0.92%, although lead fell by 0.15%.

Market indicators

• Sensex 30: 81,224.75 (+0.27%)
• Nifty50: 24,854.05 (+0.42%)
• Bank Nifty: 52,094.20 (+1.57%)
• Mid Cap 100: 58,649.12 (+0.31%)
• Small Cap 100: 19,077.80 (+0.06%)
• Dow Jones 30: 43,275.91 (+0.09%)
• S&P 500: 5,864.67 (+0.40%)
• Nasdaq: 18,489.55 (+0.63%)

• Dollar (USD): ₹84.07 (unchanged)
• Dollar Index: 103.46 (-0.37)

• Gold (per ounce): $2,721.80 (+$28.30)
• Gold (per Pavan): ₹57,920 (+₹640)
• Shani (per Pavan): ₹58,240 (+₹320)
• Crude Oil (Brent): $73.06 (-$1.39