Markets extend gains, Ola hits all-time low and more
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 a quick wrap-up of what’s happened in the markets. This is what we want to do with the Aftermarket Report—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.
Indian equity indices rebounded strongly in the latter half of the trading session on October 29, marking a second consecutive day of gains. The Nifty closed above 24,450, supported by a positive advance-decline ratio of 1.63, signaling broad-based buying interest across sectors.
PSU banks led the sectoral indices in gains, driven by strong earnings from Canara Bank. Meanwhile, the auto sector continued its downward trend due to weaker results and a cautious outlook for future performance.
What’s happening in India
EY said that the record IPO activity in India continues to be a bright spot in the global IPO market despite economic uncertainty elsewhere.
What’s happening?
• 260 IPOs launched in Q1-Q3 2024, up 73% from last year
• Raised ₹78,200 crore ($9.4 billion), up 134% year-on-year
• India accounted for 30% of global IPO listings
• Contributed 12% to global IPO proceeds
Why?
• Strong domestic investor confidence
• Robust stock market performance (Sensex up 14.9%)
• Declining inflation boosting sentiment
• Large pipeline including foreign subsidiaries
• Retail investor participation remains strong • Favorable regulatory environment
Key takeaway: India now accounts for 30% of global IPO listings and 12% of total proceeds, making it one of the world's most active IPO markets in 2024.
Festive jewelry sales set to soar past ₹30,000 crore
What’s happening?
During Dhanteras and Diwali, gem and jewelry sales in India are expected to reach over ₹30,000 crore, marking a strong season despite rising prices. Experts anticipate a 10-15% growth in sales value compared to last year, though the volume of items sold may slightly decrease.
Why?
The higher price of precious metals has boosted the appeal of gold as a reliable investment. Meanwhile, silver is becoming increasingly popular due to its affordability and industrial uses, driving demand across different consumer segments.
Ola Electric hits all-time low
What’s happening?
Ola Electric's stock dropped below its IPO price of ₹ 76) for the first time, hitting an all-time low of ₹74.84. Stock is down nearly 50% from its all-time high of ₹157.40
Why?
• Declining sales (24,665 units in September vs 27,857 in August)
• Widespread customer service issues and product problems
• Increasing market competition from major auto companies
Quarterly results
In this section, we'll dive into all the key highlights from today's intriguing results, covering the most impactful performances and standout moments. The numbers are comparable on a Year on Year (YoY) basis.
Maruti Suzuki India (-3.81%)
What happened?
Maruti's Q2 profit (PAT) dropped 17.4% to ₹3,069.2 crore.
Sales volume declined 1.9% to 5.41 lakh units.
Operating profit (EBIT) fell 8.1% to ₹3,665.7 crore.
Why?
Higher sales promotion expenses.
Increased material costs, up 140 bps to 74.9% of sales.
One-time tax impact of ₹837.6 crore due to changes in the Finance Act 2024.
Domestic sales declined 3.9%, though exports grew 12.1%.
SBI Cards (+2.64%)
What happened?
India's second-largest credit card company sees sharp profit decline despite revenue growth.
The Profit fell 33% to ₹404 crore in Q2 Revenue grew 8% to ₹4,556 crore
Bad loans (Gross NPAs) at 2.43% vs 2.35% last quarter
Why?
Rising bad loans forcing higher provisions
Higher borrowing costs Rising operating expenses
More money set aside for loan losses (₹1,212 crore) Profits dropping faster than growth Though card spending remains strong
Adani Enterprises (+1.78%)
What happened?
Revenue grew by 14% to INR 49,263 crore in the first six months (April to September) FY25.
EBITDA increased by 47% to INR 8,654 crore, showcasing strong operational performance.
Profit before tax soared by 137% to INR 4,644 crore.
Why?
Continued strong operational performance across business verticals, particularly in the Adani New Industries Ltd (ANIL) ecosystem and Airports.
Notable growth in incubating businesses with significant contributions from emerging core infrastructure sectors.
Additional Insights:
The Adani New Industries Ecosystem recorded a remarkable 85% increase in EBITDA to INR 5,233 crore, driven by robust operational performance in core infrastructure businesses.
Adani has significantly expanded its renewable energy portfolio with over 2 GW in solar module sales and advancements in wind turbine production, including achieving certification and listing for its 3.0 MW and 5.2 MW wind turbine generators.
Adani Ports (+1.52%)
What happened?
Adani Ports and Special Economic Zone Ltd. reported H1 FY25 revenue of ₹14,627 crore, up 13% year-over-year.
EBITDA rose 21% to ₹9,217 crore, with PAT increasing by 42% to ₹5,520 crore.
Why?
Adani’s cargo volumes grew 9% to 220 MMT, with the company handling 45% of India’s container cargo and 27% of the country’s total cargo.
Mundra Port achieved 101.1 MMT in H1 alone, contributing to APSEZ's goal of 460-480 MMT for FY25.
Cipla (-1.70%)
What happened?
Cipla’s Q2 FY25 revenue from operations rose to ₹7,051 crore, bringing H1 revenue to ₹13,745 crore—an increase from ₹13,007 crore in H1 FY24.
Net profit for Q2 grew to ₹1,305 crore, up from ₹1,155 crore year-over-year. The company reported operating expenses of ₹5,453 crore for the quarter.
Why?
Cipla's growth is driven by strong sales in both core pharmaceuticals and new ventures.
Effective cost management and robust contributions from subsidiaries reflect resilience amid global challenges, positioning Cipla for sustained profitability and market expansion.
Key sectors saw increased demand, and inventory management remained steady, enhancing Cipla's cash flow and market reach.
What’s happening globally
China’s biggest economic rescue package in 16 years
Reuters is reporting that China is preparing its biggest economic rescue package since 2008, planning to unleash ¥10 trillion ($1.4 trillion) in extra debt as property crisis and local government struggles threaten growth.
What happened?
China plans to approve ¥10 trillion ($1.4 trillion) in extra debt next week, with ¥6 trillion ($830 billion) aimed at rescuing local governments and ¥4 trillion ($550 billion) targeting the property market crisis.
The package size could increase if Trump wins the U.S. election.
Why?
The country faces a twin crisis with local governments drowning in debt while the property market continues to slump
Economic indicators show troubling signs: growth below target, deflation risks, and weak consumer confidence
The financial system needs strengthening through bank recapitalization.
Bitcoin Surges to $71,000
What happened?
Bitcoin surpassed $71,000 for the first time since June, driven by strong inflows into exchange-traded funds (ETFs) and speculation surrounding the upcoming U.S. election.
Why it matters:
Some investors view Bitcoin as a "Trump trade" due to his positive stance on digital assets, adding to its appeal in the current political climate.
Apple boosts iPhone exports from India
What happened?
Apple’s iPhone exports from India increased by one-third in the first half of the fiscal year, reaching nearly $6 billion.
Why it matters:
Apple is ramping up manufacturing in India to reduce reliance on China, amid rising US-China tensions.
India’s subsidies, skilled workforce, and improved tech infrastructure make it an appealing alternative, with annual exports on track to exceed $10 billion, reflecting India’s growing importance in Apple’s global supply chain.
TSMC halts orders from multiple Chinese clients
Nikkei Asia and CNBC are reporting that TSMC, the world's largest semiconductor maker has suspended multiple Chinese clients amid growing concerns about secret channels to Huawei Technologies.
What happened?
TSMC cut off at least two chip developers ordering suspicious volumes of 7nm chips
The company also halted shipments to AI firm Sophgo after its chip was found in Huawei's Ascend 910B processor
TSMC has "proactively" alerted U.S. authorities about potential violations
Tech analysis firm TechInsights discovered TSMC chips in restricted Huawei products
Why?
The U.S has banned the export of advanced chips to Chinese firms Chinese companies are using complex layers of non-Chinese entities to hide orders, while Huawei partners with domestic chipmaker SMIC China's advancing AI chip capabilities despite restrictions raising national security worries in the US
Key takeaway:
The incidents expose the challenges in enforcing tech restrictions on China, as companies find increasingly sophisticated ways to circumvent controls, prompting stricter oversight of global semiconductor supply chains.
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.
Firstly, Congratulations on a well crafted report. This is really helpful. Few feedbacks. (Not to take away the merit of what you have done, but only suggestions).
1. Report looks a bit lengthy, may be you can make it a bit more concise and brief.
2. In all the Tables (Market Performance, Heat Map, Indices Performance, Top Gainers and Losers), if you can add the Current Market Price along with Previous Days Price (please retain the %), will be nice.
Thanks
Amazing, the content is perfect. Facts followed by reasons. This will be my daily read from now on.
Only section that could be added is the economic calendar in the coming days which includes data about to be released.