[ad_1]
Domestic equity benchmarks suffered a significant decline on Thursday, with the Nifty50 plunging over 2 per cent, its worst single-day performance in two months. This sharp decline is mainly due to a confluence of global and domestic factors. All sectoral indices on the NSE closed in the red, with real estate, auto and energy stocks leading the decline.
The Middle East region was once again thrown into turmoil as Iran responded to recent Israeli bombings in Lebanon by launching missiles. This escalation of the conflict has raised concerns about regional stability and its potential impact on global oil prices. Meanwhile, the ongoing strike by nearly 50,000 dockworkers in the United States has disrupted both imports and exports, causing significant disruptions in global supply chains.
Back in India, the Securities and Exchange Board of India (SEBI) on Tuesday introduced new regulations for futures and options (F&O) trading. Even though the implementation timeline has been staggered, experts fear that these changes could reduce the liquidity and depth of Indian markets.
In the barometric index, the S&P BSE Sensex fell 1,769.19 points or 2.10 per cent to 82,497.10. The Nifty 50 index fell 546.80 points or 2.12 per cent to 25,250.10.
Larsen & Toubro (down 4.18%), Reliance Industries (down 3.91%) and HDFC Bank (down 2.55%) were major drags.
In the broader market, the S&P BSE Mid-Cap Index fell 2.27% and the S&P BSE Small-Cap Index fell 1.84%.
The scale of the market was small. On BSE, 1,118 stocks rose and 2,868 stocks fell. In total, 90 stocks remained unchanged.
The NSE’s India VIX, a gauge of near-term market volatility expectations, jumped 9.86 per cent to 13.17.
SEBI’s new F&O rules:
SEBI has introduced a six-step plan to reduce retail participation in speculative index derivatives. This could lead to a significant drop in trading volumes. New regulations require traders to maintain higher margins, which could hamper their ability to take larger leveraged positions.
Additionally, reducing weekly options expirations to one per exchange could result in decreased revenue for exchanges and brokers. This change means that each exchange will only offer weekly contracts for one benchmark index instead of the current two to four. These measures aim to reduce excessive speculation in the futures and options (F&O) segment, where retail investors often find themselves on the losing side.
Numbers to follow:
The yield on India’s benchmark 10-year federal bond rose 2.27 per cent to 6.885 from 6.732 at the previous close.
In the foreign exchange market, the rupee fell slightly against the dollar. The partially convertible rupee was hovering at 83.9775, compared to 83.8275 in the previous trading session.
MCX Gold futures for December 5, 2024 settlement fell 0.56% to Rs 75,960.
The U.S. Dollar Index (DXY), which tracks the value of the greenback against a basket of currencies, rose 0.22% to 101.89.
The US 10-year bond yield gained 0.67% to 3.813.
In the commodities market, Brent crude for December 2024 settlement rose $1.50, or 2.03%, to $75.40 per barrel.
Global markets:
Dow Jones Index futures fell 78 points, indicating a negative open for U.S. stocks today.
Stocks in Europe and Asia were mixed on Thursday, reflecting a cautious sentiment in global markets amid escalating tensions in the Middle East.
Markets in China and South Korea remained closed for holidays. Taiwan’s markets have been closed for a second day as Typhoon Krathon brings torrential rain to the island.
Geopolitical tensions in the Middle East have increased following the Iranian missile attack on Israel on October 1. Subsequent Israeli ground incursions into Lebanon targeting Hezbollah, an Iran-backed militia, have heightened concerns about possible oil supply disruptions and increased uncertainty in global financial markets.
In the United States, stock markets closed with modest gains on Wednesday. The tech-heavy Nasdaq Composite edged up 0.08%, while the S&P 500 and Dow Jones Industrial Average rose 0.01% and 0.09%, respectively. However, investor caution persisted due to tensions in the Middle East and the expectation of new employment data in the United States.
Major US technology stocks experienced mixed performance. Nvidia gained 1.6%, while Tesla saw a 3.5% decline. Humana Inc. and Nike suffered significant losses, falling 11.8% and nearly 7%, respectively.
ADP’s national employment report shows that U.S. private sector payrolls increased more than expected in September, adding 143,000 jobs. That beat economists’ forecasts and highlighted the strength of the U.S. labor market despite broader economic uncertainties.
The resilience of the US labor market was further underlined by the unexpected increase in job postings in August. The Job Openings and Labor Turnover Survey (JOLTS) found a rebound of 329,000 job openings, beating analysts’ expectations. While hiring has decreased slightly, layoffs have decreased.
Actions in the spotlight:
Dabur India fell 6.19% after posting a disappointing second quarter update. Co. says its revenue will fall in the 5% range, its profitability will be affected and it expects operating margins to decline in the next 15 to 15 years.
Suzlon Energy fell 5% after receiving warning and warning letters from BSE and NSE for non-compliance with SEBI’s LODR.
Vipul Organics jumped 1% after receiving approval from the Maharashtra Pollution Control Board for its new plant in Ambernath. The installation will triple the manufacturing capacity of pigment preparations.
Maruti Suzuki India slipped 4%. The company recorded total sales up 1.87% at 1,84,727 units in September 2024, compared to 1,81,343 units sold in September 2023. The total sales for the month include domestic sales of 148,061 units, sales at other OEMs of 8,938 units and exports of 27,728 units.
Hero MotoCorp fell 1.52%. The two-wheeler majors’ total sales of motorcycles and scooters jumped 18.74% to 637,050 units in September 2024, compared to 536,499 units recorded in September 2023.
Baazar Style Retail soared 6.57% on strong business update in Q2FY25. Revenue up 65% YoY and store sales growth comparable is up 41%. The company’s rapid expansion is fueling this dynamic.
ITD Cementation India soared 20% after the company secured a new contract worth Rs 1,937 for the construction of a multi-storey commercial building in Uttar Pradesh.
NMDC slipped 1.80%. The state-owned mining company’s iron ore production increased by 1.33% to 3.04 million tonnes (MT) in September 2024 from 3 MT produced in September 2023.
NBCC (India) fell 5.27%. The company informed that it has received orders from the Small Industrial Development Bank of India (SIDBI) and the Ministry of Textiles, totaling Rs 47.04 crore.
REC slipped 3.43%. The company said it disbursed loans amounting to Rs 47,303 crore in the second quarter of FY24-25, which is higher by 13.71% compared to the Rs 41,598 crore disbursed in the second quarter of exercise 23-24.
JSW Energy fell 2.04%. The company said its wholly-owned subsidiary, JSW Neo Energy, has received a letter of intent (LoI) from the Maharashtra State Electricity Distribution Company (MSEDCL) for the purchase of 1,500 MW/12,000 MWh of storage capacity. pumped hydroelectric power.
Adani Ports and Special Economic Zone (APSEZ) declined by 2.74%. The company said it handled a total cargo volume of 37.5 million metric tons (MMT) in September 2024, an increase of 14% on a year-over-year basis.
Aurobindo Pharma added 1.38% after the company announced that it had received final approval from the United States Food & Drug Administration (USFDA) to manufacture and market Cephalexin Tablets USP, 250 mg.
New announcement:
Shares of KRN Heat Exchanger and Refrigeration settled at Rs 478.45 on the BSE, a premium of 117.48 per cent over the issue price of Rs 480.
The script was quoted at Rs 470, presenting a premium of 113.64% over the issue price. The stock hit a high of 513.40 and a low of 450. On the BSE, over 26.50 lakh shares of the company were traded on the counter.
Powered by Capital Market – Live News
Disclaimer: No Business Standard journalists were involved in the creation of this content.