Sensex, Nifty trade lower; European mrkt decline: HDFC Bank rallies over 3%

The headline equity benchmarks traded in negative terrain with minor losses in afternoon trade. The Nifty traded below the 24,800 level. Barring financial services all other indices on the NSE were traded in Red.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 141.08 points or 0.17% to 81,085.53. The Nifty 50 index fell 94.05 points or 0.38% to 24,760.

In the broader market, the S&P BSE Mid-Cap index fell 1.04% and the S&P BSE Small-Cap index shed 1.08%.

The market breadth was weak. On the BSE, 1,200 shares rose and 2,761 shares fell. A total of 147 shares were unchanged.

Economy:

India's net direct tax collections jumped by 182.02% over last decade to Rs 19.60 lakh crore in FY24, from 6.95 lakh crore in FY15, following strong growth in personal income tax, the latest time series data from the Income Tax Department showed. Personal income tax collections zoomed up nearly 300% to Rs 10.45 lakh crore, from 2.65 lakh crore in FY15, outpacing corporate tax collections, which rose by 112.85% to Rs 9.11 lakh crore from Rs 4.28 lakh crore in FY15.

Gainer & Losers

Bajaj Auto (up 3.45%), HDFC Bank (up 3.19%), Asian Paints (up 1.15%), Eicher Motors (up 0.92%) and Reliance Industries (up 0.70%) were major Nifty gainers.

HDFC Bank rallied 3.19% after the company reported 5.29% increase in standalone net profit to Rs 16,820.97 crore in Q2 FY25 as compared with Rs 15,976.11 crore in Q2 FY24. Total income rose 9.05% YoY to Rs 85,499.64 crore during the quarter as compared with Rs 78,406.23 crore in Q2 FY24.

Tata Consumer Products (down 7.18%), Kotak Mahindra Bank (down 5.08%), IndusInd Bank (down 3.25%), Bharat Petroleum Corporation (BPCL) (down 3.09%) and Bajaj Finserv (down 2.68%) were major Nifty losers.

Kotak Mahindra Bank slumped 5.08%. The bank's standalone net profit rose 4.78% to Rs 3,343.72 crore on 17.71% rise in total income to Rs 15,900.46 crore in Q2 FY25 over Q2 FY24. The bank reported 80% jump in provision & contingencies to Rs 660 crore in Q2 FY25 from Rs 366 crore in Q2 FY24.

Stock in Spotlight:

JM Financial declined 1.48%. The Reserve Bank of India (RBI) announced the lifting of restrictions imposed by it on JM Financial Products, a material subsidiary of the company. JM Financial Products has now been permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable laws and regulations.

RBL Bank tumbled 13.94% after the bank's net profit fell 24.3% to Rs 222.52 crore on 20.1% increase in total income to Rs 4458.29 crore in Q2FY25 over Q2FY24.

Tejas Network spurted 9.10% after the company reported consolidated net profit of Rs 275.18 crore in Q2 September 2024 as against net loss of Rs 12.64 crore in Q2 September 2023. Net sales soared 570.58% to Rs 2655.16 crore in Q2 September 2024 over Q2 September 2023.

Tech Mahindra rose 0.40% after the company's consolidated net profit jumped 46.81% to Rs 1,250.1 crore on 2.36% rise in revenue from operations to Rs 13,313.2 crore in Q2 FY25 over in Q1 FY25.

Global market:

European shares mostly declined as investors remained cautious amid elevated Middle East tensions. German Producer price index fell to 1.4% YoY in September 2024, due to significantly lower energy prices, the federal statistics office said on Monday.

Asian stocks traded mixed on Monday as traders digested China's latest loan prime rate cut and looked ahead to Japan's upcoming general election. The People's Bank of China lowered both the one-year and five-year LPRs by 25 basis points, signaling a continued effort to stimulate the economy.

Other key economic indicators this week include Tokyo's October inflation data and South Korea's preliminary third-quarter GDP figures. These releases will provide insights into the region's economic health and potential policy responses.

Global financial markets remain influenced by a complex interplay of factors. On one hand, investors are closely watching the economic prospects of the United States and China. On the other, geopolitical tensions in the Middle East and other regions continue to create uncertainty.

In the United States, major stock indices closed at record highs on Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains, driven by strong earnings reports and optimism about the tech sector. Notably, Netflix's post-earnings surge contributed significantly to the Nasdaq's performance.

The broader market benchmark, the S&P 500, advanced 0.40% on Friday. The Dow Jones Industrial Average gained 0.09%, while the Nasdaq Composite closed up 0.63%. This marks the sixth consecutive week of gains for all three major indices, the longest such streak since late 2023.