Markets@10: Volatile trading sees Muthoot Finance up 6%, Mamaearth parent slips 20%

The Indian stock market opened with slight gains this morning, but quickly became volatile. The Nifty index fluctuated between 23,362 and 23,607 within the first hour, while the Sensex moved between 77,015 and 77,887. The market is showing signs that it may fall further.

IT stocks are weighing heavily on the market. The IT sector index dropped by 3%, with stocks like Mindtree and Wipro falling as much as 4.5%. Tech Mahindra, Infosys, and TCS also saw declines of around 3%.

On the other hand, stocks in sectors like metals, real estate, automobiles, and consumer durables performed well. However, oil and gas, healthcare, and pharma stocks were lower.

Muthoot Finance raised its revenue and profit growth forecast to 25% for the year. Its second-quarter results met expectations, and the stock rose by 6%.

Manappuram Finance shares dropped by 2%.

Shares of Honasa Consumer (the parent company of Mama Earth) fell by 20% in the morning, dropping below their IPO price. The company reported a loss for the second quarter, and analysts predict its growth will slow down, with profits expected to decline by 35% by 2027. As a result, the target price for the stock was reduced to Rs 300 by brokerage firm MK. However, foreign brokerage Jefferies lowered the price target to Rs 425 but still gave the stock a "buy" recommendation.

Shares of Indraprastha Gas fell by 19%, and Mahanagar Gas dropped by 13% after a 20% reduction in regulated price gas share. Gujarat Gas fell by 4%, while Adani Total Gas lost 4%.

In contrast, global aluminium prices jumped, boosting stocks like Hindalco, which rose by 4.5%. Nalkaye gained 8.5%, and Vedanta rose by 4.5%. The price surge followed the removal of tariff rebates on China's aluminium exports.

The Indian rupee was stable, trading at Rs 84.40 against the US dollar at the opening, and later moved to Rs 84.31.

Gold update

Gold prices increased globally, reaching $2,590 per ounce. In Kerala, the price of jewellery gold rose by Rs 480 to Rs 55,960.

Crude oil prices are back on the rise, with Brent crude reaching $71.44 per barrel.