In recent market activity, Indian equity indices have shown promising growth, with Nifty 50 surpassing a crucial resistance of 19,200 points and Sensex increasing by approximately 300 points in the previous session. This comes after a challenging week in late October, marking Nifty 50's first close above 19,200 since October 23. The nearly one percent gain was significantly bolstered by HDFC Bank's strongest two-month weekly advance.
On Thursday, November 3, BSE Sensex and NSE Nifty recorded gains for the second consecutive session. Positive global cues, steady macro-economic data, and robust Q2 earnings drove this upward trend. The Sensex rose by 282.88 points or 0.44% to close at 64,363.78, while the Nifty increased by 97.30 points or 0.51% to close at 19,230.60. Both indices gained nearly a percent each during the week, breaking a two-week losing streak.
Geojit Financial Services attributed this positive market trend to a decrease in investors' anxiety as Nifty VIX contracts generously. They noted that strong domestic corporate earnings and robust PAT growth of large cap companies also contributed to the market optimism. Additionally, factors such as the Federal Reserve's unlikely future rate hike and a modest decline in oil prices are contributing to the market optimism.
They also highlighted steady Q2 Indian operating margin and a healthy expansion seen in ongoing Q2 results as factors lifting H2 corporate earnings outlook.
Several key stocks are worth watching in light of recent developments. SBI reported an 8% increase in net profit for Q2 FY24 and improved gross and net NPA along with a rise in net interest income. InterGlobe Aviation posted a PAT of ₹188.9 crore (INR100 crore = approx. USD12 million) for Q2 after suffering a loss in the same quarter last year, with significant improvement in EBITDA and margins. Despite reporting a consolidated net loss due to the adoption of a new tax rate, Vedanta (NYSE:VEDL) remains on the watchlist. The Shipping Corporation of India saw a decline in consolidated profit due to lower top-line revenue, despite strong other income. Finally, Zomato reported a net profit of ₹36 crore for Q2, indicating significant YoY revenue growth.
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