Indices trade with minor cuts; European mkt advance

The headline indices traded with tiny losses in afternoon trade. The Nifty traded below the 24,350 mark. Auto, metal and pharma shares declined while banking stocks advanced.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 79.95 points or 0.10% to 79,932.00. The Nifty 50 index slipped 31.80 points or 0.13% to 24,307.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.21% and the S&P BSE Small-Cap index shed 0.11%.

The market breadth was negative. On the BSE, 1,846 shares rose and 1,878 shares fell. A total of 152 shares were unchanged.

Economy:

According to the monthly report by the finance ministry, the outlook for the Indian economy is good, underpinned by a stable external sector, positive agricultural outlook, expected improvements in demand supported by the festive season, and the likelihood of an increase in Government spending, which will boost investment activity. However, at the margin, demand conditions in the economy bear watching. Given the overall subdued inflation, barring a few food items, the real price of money may have gone up.

The finance ministry maintains that the Indian economy will grow between 6.5% and 7.0% in the current fiscal year. However, risks stem from global factors such as geopolitical conflicts, rising geo-economic fragmentation, uncertainties about the trade policies of major economies and consequent financial market reactions, the report noted.

Gainers & Losers:

SBI Life Insurance Company (up 3.39%), HDFC Life Insurance Company (up 2.99%), State Bank of India (SBI) (up 2.95%), Bharat Electronics (up 2.65%) and Eicher Motors (up 2.13%) were major Nifty gainers.

Tata Motors (down 4.24%), Dr. Reddy's Laboratories (down 3.24%), Hero MotoCorp (down 3.11%), Bajaj Auto (down 2.75%) and IndusInd Bank (down 2.46%) were major Nifty losers.

Stocks in Spotlight:

Bharti Airtel declined 2%. The telecom major reported a consolidated net profit of Rs 3,593.2 crore in Q2 FY25, steeply higher than Rs 1,340.7 crore posted in Q2 FY24. revenue from operations increased 11.95% YoY to Rs 41,473.3 crore in Q2 FY25, driven by strong momentum in India and sustained constant currency growth in Africa.

Maharashtra Seamless advanced 2.82% after the iron & steel producer reported 70.25% jump in consolidated net profit to Rs 220.08 crore on a 12.24% rise in net sales to Rs 1,291.81 crore in Q2 FY25 over Q1 FY25.

Indraprastha Gas added 2.51%. The consolidated net profit declined 17.69% to Rs 454.88 crore in Q2 FY25 as compared with Rs 552.67 crore in Q2 FY24. Howerver, revenue from operations (excluding excise duty) rose 6.91% to Rs 3,697.6 crore in Q2 FY25 from Rs 3,458.51 crore posted in Q2 FY24.

Restaurant Brands Asia slipped 2.94% after the company reported consolidated net loss of Rs 65.45 crore in Q2 FY25 as compared with net loss of Rs 50.65 crore in Q2 FY24. Revenue from operations advanced 1.2% YoY to Rs 632.43 crore in Q2 FY25.

Federal bank surged 8.18% after the private lender's standalone net profit rose 10.78% to Rs 1,056.69 crore in Q2 FY25 as against Rs 953.82 crore posted in Q2 FY24. Total income jumped 21.91% year on year (YoY) to Rs 7,541.23 crore in the quarter ended 30 September 2024.

Tamilnad Mercantile Bank rose 2.75% after the bank's standalone net profit jumped 10.85% to Rs 303.18 crore on 14.62% increase in total income to Rs 1,564.88 crore in Q2 FY25 over Q2 FY24.

Spandana Sphoorty Financial tumbled 17.18% after the microfinancier reported a consolidated net loss of Rs 216 crore in Q2 FY25 as against a net profit of Rs 125 crore in Q2 FY24. Total income fell by 4% YoY to Rs 707 crore during the quarter. Net interest income (NII) rose by 9% to Rs 341 crore in Q2 FY25 over Q2 FY24.

Ideaforge Technology dropped 7.87% after the company reported net loss of Rs 13.72 crore in Q2 FY25 as compared with net profit of Rs 0.89 crore in Q2 FY24. Revenue from operations increased 56.34% YoY to Rs 37.10 crore in Q2 FY25.

Global Markets:

European shares advanced while Asian stocks traded mixed on Tuesday.

Investors turned their attention to a flurry of key earnings reports due out in the coming days. While Japanese markets continued their upward trend following the ruling coalition's loss of its parliamentary majority, the broader Asian market was less enthusiastic. The Bank of Japan's upcoming meeting later this week is expected to maintain its current monetary policy stance.

US stocks closed higher on Monday, driven by hopes of easing geopolitical tensions in the Middle East. The focus is firmly on the upcoming deluge of major earnings reports and economic data releases. The S&P 500 gained 0.27% to 5,823.52, the NASDAQ Composite rose 0.26% to 18,568.05, and the Dow Jones Industrial Average outperformed with a 0.65% increase to 42,387.57.

Key economic events this week include the release of US GDP data for the third quarter on Thursday, followed by the PCE price index (the Fed's preferred inflation gauge) and nonfarm payrolls data on Friday. These figures will provide crucial insights ahead of the Fed's upcoming meeting, where a smaller 25-basis-point rate cut is widely anticipated. Additionally, the US presidential elections are scheduled for November 5th.