Market Today: Infy, Axis Bank Q2 results; Dow at record; Hyundai India IPO

Stock Market Today, October 17, 2024: Benchmark equity indices – Nifty50 and BSE Sensex – are anticipated to open higher today, buoyed by positive global cues. 

At 6:30 AM, GIFT Nifty Futures were trading about 14 points higher at 25,069, suggesting a flat to positive start for Indian markets.

Domestic triggers
 

Investors will be closely analysing Bajaj Auto's Q2 results. Bajaj Auto reported a 31.4 per cent drop in consolidated net profit after tax (PAT) to Rs 1,385.4 crore for Q2 of FY25. However, revenue from operations increased 22.2 per cent to Rs 13,247.3 crore during the same period. READ MORE

Additionally, the market will be monitoring Q2 results from companies including Infosys, Wipro, Axis Bank, Nestle India, LTIMindtree, Tata Chemicals, Ceat, and Havells India, among 18 others.

What to expect from Infosys, Nestle, Wipro and Axis Bank Ahead of Q2 results?
 

Infosys, India’s second-largest IT firm, is set to announce its financial results for Q2 FY25 on Thursday, October 17. Analysts anticipate a strong performance among Tier-I IT peers, driven by large deal ramp-ups, the integration of its subsidiary ‘intech’, and a recovery in the banking and financial services sector. READ MORE

Axis Bank is also reporting its Q2 results for FY25 today. Brokerages project net profit growth in the low double digits year-on-year, supported by modest loan growth and other income sources. READ MORE

Also Read: Wipro Q2FY25 preview: Revenue may fall up to 3% YoY; margin, guidance eyed

Additionally, Nestle India will release its quarterly results for the July-September period (Q2FY25) on October 17. Brokerages indicate that the FMCG giant’s adjusted profit is expected to rise by 7 to 8 per cent to approximately Rs 876 crore, compared to Rs 805.5 crore a year ago. READ MORE

Wall Street action
 

On Wednesday, the Dow Jones reached a record high, closing above 43,000 points for the third time in four sessions, advancing 0.79 per cent. The S&P 500 rose 0.47 per cent, while Nasdaq gained 0.28 per cent. 

Traders are now looking ahead to weekly jobless claims and September’s retail sales data due on Thursday, along with industrial and manufacturing production figures.

Asia-Pacific markets

Asia-Pacific markets are trading higher, following Wall Street's lead. Japan’s Nikkei 225 rose 0.27 per cent, while Australia’s S&P/ASX 200 increased 0.85 per cent. Korea’s Kospi gained 0.17 per cent. 

Investors are also evaluating Japan’s trade figures, which showed a shift to a deficit of JPY 294.24 billion in September 2024, compared to a surplus of JPY 60.56 billion a year earlier. 

Furthermore, reports suggest that investors are hopeful for potential stimulus measures to support China’s real estate sector, with the housing minister set to hold a press briefing today.

Geopolitical woes continue

The US is deploying its THAAD anti-missile system to Israel following an Iranian missile attack. THAAD is designed to intercept ballistic missiles at high altitudes and integrates with other US defence systems. Amid ongoing regional tensions, Israel has assured the US that it will not target Iranian nuclear or oil facilities, while Iran has warned of retaliation if Israeli attacks continue.

Oil drops 

US crude futures dipped on Wednesday, closing below $71 per barrel after steep declines in the previous session following news that Israel would not attack Iran’s oil facilities. The West Texas Intermediate November contract settled at $70.39 per barrel, down 19 cents (0.27 per cent), while the Brent December contract was at $74.22 per barrel, down 3 cents (0.04 per cent).

Other triggers

US Treasury yields fell to their lowest in over a week, boosting gold's appeal in a low-interest-rate environment. The European Central Bank is expected to deliver another rate cut today, while a decline in British inflation suggests a potential rate cut next month by the Bank of England. Annual inflation rate in the UK dropped to 1.7 per cent in September 2024, the lowest since April 2021.

Gold shines

Gold prices advanced toward record highs on Wednesday, supported by declines in US bond yields and anticipated rate cuts by major central banks. Spot gold rose about 0.6 per cent to $2,676.03 per ounce, nearing the record high of $2,685.42 set on September 26. US gold futures increased by 0.5 per cent to $2,692.60.

IPO corner

Hyundai Motor India’s (HMIL) IPO was subscribed 42 per cent on Wednesday (Day 2). The offering has received bids for 41.74 million shares, worth Rs 8,180 crore, against 99.77 million shares on offer. The qualified institutional buyers (QIB) portion of the IPO is 58 per cent subscribed, the high net worth individual segment at 26 per cent, and the retail investor portion at 38 per cent. READ MORE

Meanwhile, Pranik Logistics Limited IPO (SME) is set to list on the bourses today. 

Additionally, Freshara Agro Exports Limited IPO (SME) opens for subscription today, while Lakshya Powertech Limited IPO (SME) enters Day 2 of its subscription.

FII and DII show
 

On October 16, foreign institutional investors (FIIs) sold shares worth Rs 3,435.94 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 2,256.29 crore.

Market highlights 

On Wednesday, benchmark equity indices BSE Sensex and NSE Nifty50 ended in the negative territory. The BSE Sensex dropped 318.76 points (0.39 per cent) to settle at 81,501.36, while Nifty50 closed at 24,971.30, down 86.05 points (0.34 per cent). Among broader indices, the Nifty Small 100 managed marginal gains of 0.01 per cent, while the Nifty Midcap 100 index fell by 0.24 per cent.

Here's how analysts are assessing today's (October 17) trading session:

Shrikant Chouhan, head of equity research, Kotak Securities

The intraday market texture is weak but fresh selloff is possible only after dismissal of 24,900/81,300  below the same it could slip till 24,800-24,750/81,000-80,800. On the flip side, above the 50 day SMA or 25,078/81,800 the sentiment could change. Above which, the market could retest the level of 25,200-25,260/82,100-82,400. The current market texture is non-directional hence level based trading would be the ideal strategy for the day traders.

Rupak De, senior technical analyst, LKP Securities
 

Sentiment now appears slightly bearish for Nifty50, with immediate support at 24,900. A break below this level could intensify the weakness, potentially dragging Nifty down to 24,700. On the upside, 25,000 remains a strong resistance; only a decisive breakout above this level may trigger a directional rally in the market.

Hrishikesh Yedve, AVP technical and derivatives Research at Asit C Mehta Investment Interrmediates
 

On the daily chart, the index formed a small red candle, indicating selling pressure at higher levels. On the upside, the 21-Days Exponential Moving Average (21-DEMA) is positioned near 25,230, which will act as an immediate hurdle, followed by 25,400. On the downside, immediate support is placed near 24,900, followed by 24,700. In the short term, the index is expected to consolidate within the range of 24,700–25,400.