Market Buzz: Gift Nifty Opens Higher, Hindustan Zinc & Zee Entertainment Q2 Results, Shriram Finance Stock Split News, and Top Buzzing Stocks

Indian Markets Recover as Sensex and Nifty Rebound

After a volatile start, Indian benchmark indices saw a strong recovery by the end of Friday's session, with both the Sensex and Nifty 50 closing higher. Early losses were wiped out as value-buying emerged, especially in banking stocks and index heavyweight Reliance Industries, pushing the indices firmly into positive territory.

At the closing bell, the BSE Sensex had surged by 218 points (0.3%) to close on a positive note. Similarly, the NSE Nifty 50 rallied 113 points (0.5%) higher. The recovery was fueled by strong performances from Wipro, ICICI Bank, and Axis Bank, which were among the top gainers of the day. On the other hand, shares of Infosys, Hindustan Unilever (HUL), and Nestle India underperformed, dragging down some sectors.

In broader market performance, the BSE MidCap index edged up by 0.2%, while the BSE SmallCap index registered a minor loss of 0.2%. Sector-wise, the metal and banking sectors saw significant buying interest, while stocks in the FMCG and energy sectors faced selling pressure.

Gift Nifty Opens Higher

The Gift Nifty, which provides an indication of how the Indian stock market will perform, opened higher, gaining 61 points from its previous close. This suggested a positive start for the Indian market . The session witnessed a mixed performance across different sectors, with continued investor interest in banking and metal stocks, while selling persisted in FMCG and energy stocks.

Gold Prices Surge Amid Market Fluctuations

In commodity markets, gold prices also witnessed a rise. The latest contract on the MCX showed gold trading 0.6% higher at ₹77,598 per 10 grams during Indian market closing hours on Friday, signaling a favorable movement for the precious metal in the midst of broader market volatility.

Key Stocks in Focus: Ajmera Realty and Tanla Platforms

Ajmera Realty’s stock will be under the spotlight after a notable price increase earlier in the week. On 18 October, shares of Ajmera Realty & Infra India soared over 8%, following the company's announcement of raising ₹2.3 billion through a preferential allotment of shares to marquee investors. This allotment included 3.1 million shares with a face value of ₹10 per equity share on a preferential basis.

On the downside, Tanla Platforms’ shares experienced a significant dip, dropping nearly 7% on 18 October. The decline came after the company posted disappointing results for the July-September quarter. Tanla Platforms' net profit fell by 9% year-on-year to ₹1.3 billion, while revenue declined by 1% to ₹10 billion. Revenue from the company’s digital platforms segment also dropped by 8% YoY to ₹880 million, further contributing to the negative sentiment.

Hindustan Zinc Reports Strong Q2 Results

Hindustan Zinc, a Vedanta Group company, reported a robust 35% year-on-year increase in its consolidated net profit for the September quarter. The company's net profit rose to ₹23.3 billion, up from ₹17.3 billion in the same quarter of the previous year. Revenue from operations also saw a significant 21% increase, rising to ₹80 billion compared to ₹66.2 billion in the corresponding period of the previous year.

However, on a sequential basis, the company reported a slight decline in profit after tax, which stood at ₹23.5 billion in Q1FY25, representing a 0.8% decrease. The company also declared an interim dividend of ₹19 per share for FY25, amounting to a total payout of ₹80.3 billion.

In addition to its financial performance, Hindustan Zinc announced its investment in renewable energy by committing to acquire a minimum 26% stake in Serentica Renewable India Private Limited, signaling its push towards sustainability.

Zee Entertainment Q2 Profit Jumps 70%

Zee Entertainment Enterprises reported a substantial 70% year-on-year increase in consolidated net profit for the second quarter of FY25. The company’s profit rose to ₹2.1 billion, up from ₹1.3 billion in the same quarter last year. Despite this profit surge, Zee’s total income fell by 19% YoY to ₹20.3 billion during the reporting period.

On a sequential basis, Zee's net profit saw a 77% increase from the ₹1.1 billion recorded in the June quarter. The company’s EBITDA margin also improved to 16%, reflecting better cost management and operational efficiencies in a challenging market environment.

Shriram Finance to Consider Stock Split

Shriram Finance is another major player in the spotlight, as the company's board is set to meet on 25 October to consider a potential stock split. The announcement has generated considerable interest among investors, especially considering the company’s robust performance in recent quarters.

In the June quarter of 2024, Shriram Finance posted a consolidated net profit of ₹20.2 billion, a 19% increase from ₹17.1 billion in the same quarter last year. Total revenue from operations also saw a significant jump, reaching ₹96.1 billion, a 20% increase from the previous year.

The non-banking financial company (NBFC) has been performing well, with its shares entering the prestigious Nifty 50 index in March 2024. The stock has rallied 80% over the past year, with a year-to-date return of 63%, making it a prime candidate for potential stock splits as the company looks to enhance liquidity and broaden its investor base.

In conclusion, Friday’s market session demonstrated resilience, with benchmark indices reversing early losses and closing in the green. Key movers like Hindustan Zinc, Zee Entertainment, Ajmera Realty, and Tanla Platforms dominated the headlines with significant corporate developments. Looking ahead, all eyes are on Shriram Finance’s board meeting on 25 October as the company considers a stock split, which could further fuel its impressive growth trajectory. Investors will also continue to monitor sectoral performances, especially in banking and metals, for more cues on market direction.