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The frontline stock indices, the Sensex and the Nifty, made a significant rebound during the second half of the trading session on Tuesday, recovering from an initial downturn that saw them tumble sharply in the first half of the day.
This recovery was primarily driven by strong performances from heavyweights such as Reliance Industries and HDFC Bank, enabling the markets to remain in positive territory for the second consecutive day.
Consequently, the Nifty 50 ended the session with a 0.52% jump at 24,466, while the Sensex ended trade with a gain of 0.45% at 80,368. Meanwhile, both midcap and smallcap indices experienced a strong rebound, with the Nifty Midcap 100 gaining 1% and the Nifty Smallcap 100 rallying 0.85%.
SBI leads the way
Thirty-one constituents of the Nifty 50 index closed in positive territory, with State Bank of India leading the way, gaining 5.3%. Following closely were Bharat Electronics, Eicher Motors, SBI Life Insurance, Bajaj Auto, HDFC Life Insurance, and 8 other stocks, each recording gains of over 1.5%.
On the losing side, Maruti Suzuki India slumped 4.2%, while Tata Motors dropped 3.9%, and Hero MotoCorp slumped 2.9%. Other stocks, including Dr. Reddy's Laboratories, Sun Pharmaceutical, Cipla, Bajaj Auto, IndusInd Bank, and 5 additional stocks, ended the session with losses exceeding 1%.
Auto stocks experienced a sharp decline, leading the Nifty Auto index to drop by 375 points, or 1.60%, closing at 23,588. This downturn was primarily influenced by Maruti Suzuki, the country’s largest car manufacturer, which reported September quarter results that fell below market expectations, negatively impacting overall sentiment within the auto sector.
Concerns are also rising that sales during the upcoming Diwali season may not meet projections, as urban consumers seem to be holding back on purchases. Of the 15 constituents in the Nifty Auto index, 10 closed in the red, with Maruti Suzuki and Tata Motors among the top losers, each experiencing declines of up to 4.2%.
Maruti Q2 results
Maruti reported a net profit of ₹3,069 crore for the second quarter of 2024-25, reflecting a year-on-year decrease of 17.4%. Meanwhile, revenue from operations in the same quarter saw a marginal increase of 0.4%, rising to ₹37,202.8 crore from Rs37,062.1 crore year-on-year (YoY).
Other sectoral indices, including Nifty Pharma, Nifty IT, and Nifty FMCG, all ended with losses of up to 1.2%.
On the positive side, PSU banks extended their winning streak, buoyed by strong results from Canara Bank, which followed positive numbers from Bank of Baroda. This led the Nifty PSU Bank index to gain another 3.7% during the trading session, extending its rally for the second session.
Canara Bank reported an 11.32% YoY increase in standalone net profit, reaching ₹4,014 crore in Q2FY25. On the asset quality front, its Gross Non-Performing Asset (GNPA) ratio improved by 103 basis points during the quarter, standing at 3.73%, while the Net NPA ratio fell to 0.99%, improving by 42 basis points from 1.41% in the September 2023 quarter.
Among the Nifty 500 stocks today, Syrma SGS Technology led the rally with an impressive 15% gain, reaching ₹492 per share, following a 14% rise in the previous trading session. This surge came after the company reported stellar numbers for the quarter ending in September.
Gillette India stocks positive
Gillette India also saw a positive reaction to its Q2 FY25 results, with the stock closing today's session up by 10.4% at ₹9,399 per share. Additionally, shares of JSW Infrastructure jumped 10% after reporting strong figures for the September quarter.
Other notable performers included Sumitomo Chemical India, Federal Bank, Home First Finance Company, Macrotech Developers, Indian Bank, Dixon Technologies (India), and JSW Energy, along with 58 other stocks in the index that ended Tuesday's session with gains exceeding 3%.
On the downside, Firstsource Solutions shares tumbled 7.9% after a significant 12% rally in the previous trading session. Similarly, Sapphire Foods India experienced a decline of 5% following the release of weak Q2 FY25 numbers. Overall, 81 constituents of the index ended the trading day in the red with losses of up to 1%.
Gold and silver extend rally
Gold and silver prices extended their rally for the third straight session on Tuesday's trade, supported by uncertainty surrounding the upcoming U.S. presidential election, while investors awaited data for clues on the Federal Reserve's interest rate trajectory.
On the Multi Commodity Exchange, gold contracts for December delivery jumped by ₹322, or 0.41% at ₹78,888 per 10 grams, while the silver contracts for December delivery jumped by ₹1038 or 1% to ₹98,460 per kg.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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