Back in green: Markets break 5-day losing streak
On The Daily Brief, we do deep dives into 3-5 interesting stories of the day from the world of business and finance. However, not everyone has time to read long posts given their busy schedules, and just need a quick wrap-up of what’s happened in the markets. This is what we want to do with The Daily Wrap—a quick rundown of what’s happening in the markets to keep you updated.
We’re still experimenting with the format and what data points to cover. So, if you have any feedback, do let us know in the comments.
Benchmark indexes broke a five-day losing streak, closing higher with a solid recovery and a healthy advance-decline ratio of 2.02. The rebound was driven by a strong recovery in PSU banks and metal stocks, supported by easing geopolitical concerns.
With all major sectoral indices closing in the green, PSU banks led the gains with a 3.8% increase, followed by a 2.5% rise in metal stocks. This boost was largely driven by strong earnings reports and easing geopolitical tensions.
What’s happening in India
1. Waaree Energies Ltd. debuted on the BSE with a 70% premium over its issue price of ₹1,503, opening at ₹2,550. It peaked at ₹2,600 before closing at ₹2,338.90, marking a 56% gain.
2. The Nifty PSU Bank index surged by 3.8%, driven by strong earnings reports from Indian Bank, PNB, and BoB.
3. Real estate developers raised nearly ₹13,000 crore through Qualified Institutional Placements (QIP) by September this year, according to Anarock, a real estate consultancy.
4. Bharti Airtel reported a 168% increase in its consolidated net profit for the quarter ended September 2024, reaching ₹3,593 crores compared to ₹1,341 crores in the same quarter last year. Average revenue per user (ARPU) for the quarter rose to ₹233 from ₹203 in Q2FY24, a 15% year-on-year increase.
5. Indian Oil Corp (IOC) saw its standalone profit nearly wiped out in the second quarter of September 2024, with a 99% drop to ₹180 crore, down from ₹12,967 crore in the same quarter last year. Revenue from operations declined by 4% year-on-year to ₹1.95 lakh crore, down from ₹2.02 lakh crore a year ago.
6. State-owned Bharat Heavy Electricals Ltd (BHEL) surged 10% before closing higher by 6.55% at 231.05 after reporting a consolidated net profit of ₹106 crore in the September quarter, compared to a loss of ₹63 crore in the same period last year.
7. Sun Pharmaceutical Industries reported a 28% increase in consolidated net profit, reaching ₹3,040 crore in the September quarter.
8. The Department of Economic Affairs forecasts India’s economic growth at 6.5%-7% for the current financial year, while the Reserve Bank of India has maintained its GDP growth forecast at 7.2% for fiscal year 2025.
9. The Adani Group is in advanced discussions with the Odisha government to establish its first greenfield cement factory, with Ambuja Cements expected to build a 4 million tons per annum unit at an estimated cost of ₹3,000-3,500 crore.
10. IndiGo reported a net loss of ₹987 crore for the July-September quarter, impacted by high fuel costs and grounded aircraft, compared to a profit of ₹189 crore in the same period last year. Meanwhile, revenue increased by 14.6% to ₹17,759 crore.
What’s happening globally
1. Oil prices dropped 5% to $72 per barrel as Israeli strikes on Iran avoided major oil facilities.
2. The yen fell to a three-month low on Monday, as investors anticipated that Japan's ruling coalition losing its parliamentary majority in weekend elections might delay interest rate hikes. Meanwhile, the U.S. dollar is on track for its biggest monthly gain since April 2022.
3. Boeing Co. initiated a nearly $19 billion share sale to help improve its cash situation and prevent a potential downgrade of its credit rating to junk status.
4. Volkswagen AG plans to close at least three factories in Germany as part of its efforts to cut costs and boost competitiveness. Suggested measures to help its struggling VW brand include a 10% pay cut and downsizing remaining sites in Germany, according to works council chief and board member Daniela Cavallo.
5. The New York Stock Exchange, a part of Intercontinental Exchange, Inc. (NYSE: ICE), announced plans to extend weekday trading on its NYSE Arca equities exchange to 22 hours daily.
6. Lulu Retail Holdings Plc's initial public offering (IPO) was fully subscribed within just an hour of opening for investors. The retailer had set a price range of 1.94 to 2.04 dirhams per share for the IPO, preparing to list on the Abu Dhabi Securities Exchange.
7. Mercedes-Benz is working to cut costs after its third-quarter profits dropped by more than half compared to last year, mainly due to weaker demand in China, where buyers are choosing local brands like Geely and BYD.
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