NSE Cash Volumes Hit Six-Month Low Ahead of F&O Curbs

• Benchmark indices rebounded strongly in the second half of Tuesday, October 29, after a sharp decline in the morning session. The recovery was largely supported by strong performances from major stocks like Reliance Industries, HDFC Bank, ICICI Bank, and State Bank of India, helping the markets remain positive for the second day in a row.

• However, auto stocks saw a steep decline, with the Nifty Auto index falling by 375 points, or 1.60%, to close at 23,588. This decline was mainly due to Maruti Suzuki, India's largest carmaker, whose underwhelming September quarter results weighed on sentiment in the auto sector.

JSW Infrastructure +9.99%

• Shares jumped up to 10% after the company reported strong earnings for the July-September quarter. Net profit rose 46% year-on-year to Rs 372 crore in Q2, up from Rs 254.4 crore a year earlier.

• Revenue from operations increased 18% to Rs 1,001.4 crore from Rs 848.3 crore in Q2 of the prior fiscal.

• Operational performance also improved significantly, with the EBITDA margin rising to 67.5% this quarter, compared to 53.8% in the same period last year.

Spandana Sphoorty Financial (17.75%)

• Shares dropped 18% after the microfinance lender reported a net loss of Rs 204 crore for the quarter ending September 30, 2024, compared to a net profit of Rs 116 crore in the same period last year.

• Nuvama Institutional Equities has lowered its target price for Spandana Sphoorty stock by 42% to Rs 520 from Rs 900, citing ongoing MFI stress expected to persist through the current quarter, with recovery anticipated only in Q4FY25.

• NSE cash volumes plummet to a six-month low ahead of Sebi's F&O restrictions. (Mint)

• Major Indian banks, including HDFC and Kotak, are impacted by increasing loan defaults from small borrowers. (ET)

• RBI's domestically held gold reserves surged by the end of September, according to a report. (RT)

• Housing finance IPOs contribute 46% of real estate fundraising. (Mint)

• Experts anticipate a low likelihood of Godavari Biorefineries listing at a premium today. (MC)

• Afcons Infra IPO saw 2.63x subscription on Day 3, led by NII demand. (MC)

This week’s mainboard IPO schedule

• Afcons Infrastructure

  • Offering Period: 25 October - 29 October, 2024

  • Listing Date: 01 November, 2024

  • Issue Price: 440-463

  • Lot Size: 32

M&A / Investments

• Fortis Healthcare receives CCI approval to acquire a stake in Agilus Diagnostics for Rs 1,780 crore ($211Mn). (BS)

• HDFC Standard Life acquires PNB Housing Finance shares valued at Rs 90 crore ($10.7Mn). (BS)

• Lockton secures Irdai approval to acquire Arihant Insurance Broking. (BS)

Debt

• Yes Bank aims to sell Rs 635 crore ($75.5Mn) in non-performing unsecured loans. (BS)

VC