Hindustan Zinc OFS subscribed 0.39% in early trade

RBI Governor says

• India-US relations will continue irrespective of the election outcome
• India's economy is well placed irrespective of the US election results
• Indian macro fundamentals are resilient to tackle external spillovers
• RBI's action on the microfinance sector was calibrated and measured
• RBI's action on NBFCs was calibrated and selective
• The NBFC sector remains robust, with action taken in very few cases
• RBI's action on NBFCs was corrective, not punitive

RITES reports 25% decline in Q2 net profit at Rs 82.50 crore

*Morning Update*

* MOOD ACROSS GLOBAL MARKETS TURN CELEBRATORY ON TRUMP’S STUNNING COMEBACK!*

*Global markets:*
Wall Street rallied sharply on Wednesday, with major benchmarks hitting record highs, as Donald Trump won the 2024 presidential election. Dow gained by a whooping 3.6% while Nasdaq & S&P climbed 2.9% &2.5% each.

The 10-year Treasury yield jumped to around 4.43% on speculation Trump’s proposed tax cuts and other spending plans would spark economic growth, but also widen the fiscal deficit and reignite inflation. The investors will now monitor for the Fed Interest Rate decision today.

European stocks closed lower Wednesday, reversing earlier gains. The pan-European Stoxx 600 ended 0.59% lower, with all regional bourses and the majority of sectors finishing in the red following a mixed session.

The HCOB Eurozone Composite PMI was revised higher to 50 in October 2024 from a preliminary of 49.7 and compared to 49.6 in September.

*Domestic Market*
The Indian markets ended on a strong note celebrating Trump’s win in the US. At close, Sensex & Nifty were up by 1.1% each closing at 80,378 & 24,484 respectively.

On sectoral front, all sectors closed in green with IT gaining 4%.

BEL, Adani Ent., TCS, Infosys & Tech Mahindra were the gainers while SBI Life, Titan, HDFC Life, IndusInd & HUL were among the top losers on Nifty.

GIFT Nifty traded lower by 39 points or 0.16% at 24,447 signaling a flat start for the day.

The HSBC India Services PMI was revised higher to 58.5 in October 2024 from a flash estimate of 57.9, following a final reading of 57.7 in September, which was the lowest in over a year. It marked the 39th consecutive month of expansion in services activity, and faster than expectations of 58.3, driven by robust sales and strong demand conditions.

The Union Cabinet has approved an equity infusion of ₹10,700 crore for the Food Corporation of India (FCI) in FY 2024-25 to enhance its operational capabilities and support the agricultural sector. This move aims to reduce borrowing costs and lower government subsidies. Additionally, the Cabinet approved the PM-Vidyalakshmi scheme to provide financial support to meritorious students, offering collateral-free, guarantor-free loans for tuition and related expenses at Quality Higher Education Institutions (QHEIs), ensuring that financial constraints do not hinder access to higher education.

*Quote for the day:*
“I want to thank the American people for the extraordinary honor of being elected your 47th president & your 45th president.”— Donald Trum, US President Elect.

*Focus for the day:*

1. Fed Interest Rate Decision
2. UK Interest Rate
3. US Jobless claims

*Key corporate developments/policy actions:*

1. Apollo Hospitals Enterprise reported a 59% YoY profit increase for Q2 to ₹395.7 crore, with revenue up 15.3% to ₹5,589.3 crore. EBITDA rose 30% to ₹815.5 crore, and the EBITDA margin expanded by 170 bps to 14.6%.

2. FSSAI and state food safety officers issued around 350 improvement notices and conducted 180 inspections on e-commerce and quick-commerce platforms across India in the last three months. FSSAI will maintain heightened vigilance on these platforms.

3. Innova Captab announced its upcoming Jammu facility has received a "Drug Manufacturing License" from the Government of Jammu and Kashmir.

4. Waaree Energies has received an order to supply up to 180 MWp of modules from a leading customer in India’s renewable power sector.

5. POLYCAB has won an additional ₹1,549.6 crore order from BSNL, bringing its total orders from BSNL to ₹5,649 crore for developing and maintaining the Bharat Net middle-mile network in Bihar.

6. Shakti Pumps received a work order from Haryana Renewable Energy Department (HAREDA) under Component-B of the PM-KUSUM scheme for 3,174 pumps, valued at ₹102.25 crore.

7. Krishna Institute of Medical Sciences (KIMS) Hospitals Expands to Kerala with a plan of establishing 3000 beds providing 10,000 potential Jobs over the next 5 years.

FII: (-) Rs 44.46 bn; DII : (+) Rs 48.89 bn

*Stocks to focus :*

Large Cap: BEL, HAL, ICICI Bank, RIL, Varun Beverages

Midcap: CCL Products, Keystone Realtors, Lemon Tree, Phoenix Mills, Shriram Pistons, Sona BLW.

*Services tracks manufacturing, PMI rises to 58.5 in October*

Following the path taken by manufacturing, the services sector also signalled strong growth in October, private survey results released on Wednesday showed. The results, better known as Purchasing Managers’ Index (PMI), rose to 58.5 in October, as against 57.7 in September, which was a 10-month low. At the same time job creation was the quickest in 26 months.

Earlier, with a pick-up in festival demand, Manufacturing PMI rose to 57.5 in October, as against an eight-month low of 56.5 in September. Services has an over 53 per cent share in Gross Value Added (GVA), while manufacturing contributes nearly 15 per cent. This means over two-thirds of the economy is doing well and this should reflect in the GDP (Gross Domestic Products) number in the October-December quarter (Q3) of Fiscal Year 2024-25, whose date will be made public February next year.

In more good news, job creation in both the sectors was good. Indices for both the sectors is created on the basis of the response from purchasing managers of 400 companies each. An index of 50 reflects expansion, while a figure below 50 means contraction.

Talking about services PMI, Pranjul Bhandari, Chief India Economist at HSBC, said: “During October, the Indian services sector experienced strong expansion in output and consumer demand, as well as job creation, which achieved a 26-month high.” The report accompanying PMI highlighted that October saw a marked expansion in services employment, one that was the quickest for 26 months. Around 13 per cent of panellists reported job creation, compared to 9 per cent in September. Anecdotal evidence showed that a sustained improvement in new business has induced firms to hire full- and

“Although input price inflation is accelerating from higher food and wage costs, the general inflation trajectory remains below the long-run average. Underlying data indicated that capacity pressures also boosted job creation,” the report said.

Talking about price pressure in the services sector, the report said input price inflation accelerated to a three-month high in October, with services companies mainly reporting greater food and wage costs. The overall rate of inflation remained below its long-run average, however. Out of the four monitored sub-sectors, cost pressures were highest in Consumer Services. Companies shared part of their additional cost burdens with clients by continuing to lift selling prices. The rate of charge inflation picked up to the strongest since July and outpaced the series trend. The Finance and Insurance segment again registered the strongest upturn.

“Although input price inflation is accelerating from higher food and wage costs, the general inflation trajectory remains below the long-run average,” Bhandari said.

On sentiment, the report mentioned that it remained positive in October, despite receding a little from September. Exactly one-quarter of the survey panel forecast higher output volumes over the coming year, linked to healthy demand trends, marketing efforts and new client enquiries. At the same time, 74 per cent of firms foresee no change in business activity from present levels. “Future activity index still indicates broadly positive expectations for the year ahead,” Bhandari concluded.

Delta Corp share price falls 6% on weak September quarter earnings