Gift Nifty Gains, HPCL & BEL Earnings Insights, NSE IPO Update, and Today’s Top Buzzing Stocks

Indian share markets saw a gradual decline last Friday as benchmark indices struggled with disappointing Q2 earnings and foreign outflows. The BSE Sensex plummeted over 900 points in intraday trading, briefly dipping below the 24,100 level before slightly recovering. It eventually closed down by 663 points (0.8%) at the end of the trading session. Meanwhile, the NSE Nifty followed suit, closing 219 points lower (0.9%).

Among the gainers were notable stocks like ITC, Axis Bank, and Hindustan Unilever (HUL), while BPCL, Mahindra & Mahindra (M&M), and Adani Enterprises weighed heavily on the indices. The broader market also felt the impact, with the BSE Mid Cap index down by 1.5% and the Small Cap index falling by 2.4%.

Sector-wise, most indices closed in the red, except for FMCG, which managed to buck the trend. The oil & gas, auto, and power sectors faced significant selling pressure, further dampening market sentiment.

Gift Nifty Indicates Positive Opening

As of Monday morning, Gift Nifty showed promise with a 106-point rise to 24,255 at 7:50 AM, suggesting a possible rebound for Indian markets. This increase comes as a potential lift for investors looking to start the week on a positive note, following the challenging close last Friday.

Top Buzzing Stocks to Watch

Bikaji Foods International:

Bikaji Foods International has emerged as a key stock to monitor after its recent positive Q2 results. The snacks manufacturer saw its share price soar by nearly 10% following strong quarterly performance, with a 14.7% YoY increase in net profit, reaching Rs 686 million, and revenue growth of 19% to Rs 7.2 billion. Given its robust financials, the stock remains one to watch as the company continues its growth trajectory.

DCB Bank:

Shares of DCB Bank spiked 10% to Rs 121 following the bank’s solid July-September quarter results. The bank reported a substantial 22.6% increase in net profit YoY, amounting to Rs 1.6 billion, with net interest income (NII) up 7% YoY at Rs 5.1 billion. These earnings reflect the bank’s resilient performance amid the broader economic volatility, making it another focal point for investors this week.

HPCL and Bharat Electronics Q2 Results

HPCL:

Hindustan Petroleum Corporation Limited (HPCL) reported a significant decline in profit for Q2 FY25, with consolidated net profit plummeting by 97.5% YoY to Rs 1.4 billion. This downturn is a stark contrast from the Rs 58.3 billion in the corresponding quarter last year. However, HPCL’s revenue rose 5.4% YoY to Rs 1,082.2 billion, showing a silver lining in an otherwise challenging quarter.

HPCL achieved a record-high crude throughput of 12.1 MMT from April to September 2024, up by 8.2% from the previous year, operating at over 103.7% of installed capacity. The company also made significant investments, spending Rs 37.7 billion on infrastructure improvements in Q2 alone. Additionally, HPCL marked a milestone in sustainability by achieving a 15.6% ethanol blending rate during the quarter, which contributed to reducing greenhouse gas emissions.

Bharat Electronics Limited (BEL):

State-owned Bharat Electronics Limited (BEL) reported a 34% YoY increase in standalone net profit for Q2 FY25, reaching Rs 10.9 billion. This result surpassed analyst estimates, with revenue from operations rising 15% to Rs 45.8 billion. On a consolidated level, BEL’s PAT rose by 38% to Rs 10.9 billion, reflecting steady growth.

Operating expenses for BEL in Q2 FY25 rose by 7% to Rs 32.9 billion YoY, though they saw a sequential decrease from Q1. Following these earnings announcements, BEL shares saw a positive response in the market, with its Q2 performance contributing to investor confidence in the company’s consistent revenue and profit growth.

National Stock Exchange IPO – Awaiting Regulatory Nod

India’s premier stock exchange, the National Stock Exchange (NSE), has been preparing for its long-awaited public listing, which hinges on regulatory approval from the Securities and Exchange Board of India (SEBI). NSE’s listing plans have faced multiple delays since its initial filing in 2016, primarily due to SEBI’s concerns over past issues, including unfair access for certain traders.

In a significant turn, NSE was recently acquitted of allegations related to its co-location services, paving the way for a potential IPO. This favorable development has already sparked a surge in the valuation of NSE's unlisted shares, with the bourse now estimated at over $36 billion. Should the listing proceed, NSE’s valuation would place it ahead of global counterparts such as CBOE Global Markets, Japan Exchange Group, and Singapore Exchange, making it one of the most valuable exchanges globally.

Closing Remarks: Positive Market Indicators Amid Volatile Trends

Despite last week’s turbulence, early signs from Gift Nifty hint at a promising start for the Indian markets this week. The key events and earnings from prominent players like HPCL, BEL, and Bikaji Foods signal robust areas within the Indian market that could drive growth. Furthermore, the potential NSE IPO remains an exciting prospect, promising to add liquidity and bolster investor confidence in the coming months. As Q2 earnings reports continue, investors can expect further insights into sectoral performance and market dynamics.