An exciting week for markets ahead of Diwali week. Waaree Energies and Deepak Builders & Engineers will be closing their IPOs on October 23. Also, investors will assess the quarterly results from Zomato and Bajaj Finance.
Meanwhile, Indian markets ended Tuesday’s trading session on a lower note after rising in the early trading hours. The Nifty 50 couldn’t defend the key level of 24,500 and closing the session 1.25% lower at 24,472. The Sensex ended the session 930 points or 1.15% lower at 80,220. The Bank Nifty concluded today’s session 705 points or 1.36% lower at 51,257.
“We are of the view that, as long as the index is trading below 24600/80500 the weak sentiment is likely to continue. On the down side market could continue the correction wave till 24350-24250/79800-79500. On the flip side, above 24600/80500 the pullback formation is likely to continue till 24700-24725/80800-81000. Short-term traders should remain cautious and be very selective as there is a risk of getting trapped at lower levels,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
IMF maintains India’s GDP forecast
The International Monetary Fund (IMF) kept its growth forecasts for India unchanged at 7% for the financial year 2024-25 and 6.5% for the financial year 2025-26, because pent-up demand accumulated during the pandemic has been exhausted as the economy “reconnects” with its potential growth.
Stocks to watch for October 23
Zomato
The food delivery company’s net profit jumped five times to Rs 176 crore in the second quarter of FY25 compared to Rs 36 crore during the same quarter a year ago. Its revenue from operations grew 69% on year to Rs 4,799 crore in the reporting quarter, against Rs 2,848 crore in the same period of the last fiscal. However, its net profit fell 30% sequentially from Rs 253 crore in Q1 FY25.
Bajaj Finance
Bajaj Finance reported a 13% on-year growth in its consolidated net profit standing at Rs 4,014 crore in Q2 FY25. The company’s NII rose 23% on yearly basis to Rs 8,838 crore, compared to Rs 7,196 crore in the same period of the previous fiscal year. However, its loan losses and provisions grew 77% on-year to Rs 1,909 crore.
Adani Energy Solutions
Adani Energy Solutions, the power transmission arm of the Adani group, has received a notice from SEBI alleging wrongful categorisation of certain investors as public shareholders. Without giving details, the firm in notes to its second-quarter earnings statement said it will respond to regulatory and statutory authorities by providing relevant information/clarifications.
ICICI Prudential Life Insurance Company
ICICI Prudential Life Insurance Company reported a net profit of Rs 252 crore, a rise of 3% on year in Q2 FY25 compared to Rs 244 crore in the same quarter a year ago. The company’s total income rose to Rs 25,229 crore against Rs 17,436 crore in the year-ago period. The net premium earned was Rs 10,754 crore compared to Rs 10,022 crore in FY24, a key metric for insurance companies.
Earnings Tomorrow
Bajaj Finserv, Hindustan Unilever, SBI Life Insurance Company, Pidilite Industries, TVS Motor Company, United Spirits, Godrej Properties, Schaeffler India, Lloyds Metals and Energy, KPIT Technologies, Sona BLW Precision Forgings, Syngene International, Metro Brands, Piramal Pharma, Dr Lal PathLabs, Piramal Enterprises, IIFL Finance, Navin Fluorine International, Craftsman Automation, Nuvoco Vistas Corporation, VIP Industries, Bajaj Holdings & Investment, AU Small Finance Bank, Aster DM Healthcare Ltd, Birlasoft, and Birla Corporation will be releasing their quarterly results on October 23.