Hero Hits Festive High

Aaj Ka Bazaar

The U.S. markets closed lower on Monday as investors braced for a pivotal week with the U.S. presidential election set to take place later today and the Federal Reserve poised to release its policy statement soon. Most Asia-Pacific markets were also trading lower, reflecting caution ahead of the U.S. election results. Indian markets are expected to open on a muted note and could trend downward throughout the day, driven by sustained foreign outflows and weaker corporate earnings. Investors in India are approaching the market cautiously, influenced by mixed global signals and ongoing foreign selling pressures. On the stock-specific front, Maharatna PSUs NTPC and ONGC will create a joint venture company through their green energy units NTPC Green Energy and ONGC Green Energy, which will help them strengthen their presence within the renewable energy segment.

Markets Around Us?

BSE Sensex - 78,626.02 (-0.20%)

Nifty 50 - 23,960.15 (-0.15%)

Bank Nifty - 51,071.60?(-0.28%)

Dow Jones - 41,823.21 (0.09%)

Nasdaq - 18,172.66 (-0.37%)

FTSE - 8,184.24 (0.09%)

Nikkei 225 - 38,550.51 (1.31%)

Hang Seng - 20,828.84 (1.27%)

Sector: Defence

Bharat Forge to bag Rs 7,000 crore deal from DRDO

Bharat Forge has emerged as the lowest bidder in a ?7,000 crore deal for advanced towed artillery gun systems (ATAGS) developed by DRDO for the Indian Army. The order is likely to be split 60:40 between Bharat Forge and Tata Advanced Systems Ltd (TASL), the two partners for these indigenous guns. The Army recently tested 307 of these towed guns across various terrains, from deserts to high altitudes, confirming their performance and readiness for induction. The ATAGS, which aim to replace the older Bofors guns, have also been exported to Armenia. Meanwhile, the Army has issued a new tender to procure next-generation artillery guns, with Bharat Forge, TASL, and Larsen & Toubro expected to be major contenders. These new 155mm/52 calibre guns will be lighter and more versatile than existing models, enhancing India’s defence capabilities.

Why it Matters:

This potential pipeline, coupled with Bharat Forge's growing reputation and partnerships, suggests a promising outlook for long-term revenue growth. The deal can positively impact Bharat Forge's share value, given its alignment with government priorities and the boost to its defence sector profile.

NIFTY 50 GAINERS

TATASTEEL - 149.38?(1.65%)

INDUSINDBK - 1,080.75?(1.59%)

HINDALCO - 681.70?(1.10%)

NIFTY 50 LOSERS

ADANIPORTS - 1,316.25 (-2.45%)

TRENT - 6,952.05 (-1.58%)

SHRIRAMFIN - 3,117.55?(-0.96%)

Sector: 2-Wheeler

Hero MotoCorp witness record sales in festive period?

Hero MotoCorp, India’s largest two-wheeler maker, reported record festive sales, reaching 1.6 million units sold during the 32-day period from Navratri to Bhai Dooj, marking a 13% increase from last year. CEO Niranjan Gupta highlighted strong demand nationwide, with rural sales catching up to urban areas in the later part of the season. Key growth drivers included the 125cc motorcycle segment, especially the Xtreme 125R, alongside positive performance in the 100cc segment. Hero’s electric brand, VIDA, sold 11,600 units, benefiting from expanded sales networks and a focus on top markets. Hero also saw success with the Harley-Davidson X440, which sold over 2,800 units. Plans to expand the Hero Premia network to more than 100 locations by fiscal year-end aim to boost the brand’s reach and customer access.

Why it Matters:

The promising sales of Harley-Davidson’s X440 model and the planned expansion of Hero’s premium network further enhance the brand’s premium positioning. This performance not only supports Hero’s growth trajectory but also suggests a diversified revenue stream for the future, making the stock potentially attractive for long-term investors.

Around the World

Most Asian markets declined on Tuesday as traders stayed cautious ahead of the U.S. presidential election, while Chinese markets saw gains on strong business activity data. China’s Shanghai Composite and CSI 300 each rose 0.8%, supported by a better-than-expected services PMI and hopes for more fiscal support from the ongoing National People’s Congress meeting. Australian stocks dropped 0.5% as investors awaited the Reserve Bank of Australia’s interest rate decision, with a hawkish stance expected due to sticky inflation and a strong labour market. Japan’s Nikkei and TOPIX rebounded 1.3% and 0.9% after a long weekend, while South Korea’s KOSPI fell 0.6% due to tech sector losses, despite lower-than-expected inflation data. Indian markets looked set for a flat open after significant losses in October, driven by foreign capital outflows.

Option Traders Corner

Max Pain

Nifty 50 - 23,900

Bank Nifty - 51,500

Nifty 50 - 24,042 (Pivot)

Support - 23,768, 23,542, 23,268

Resistance - 24,269, 24,543, 24,769

Bank Nifty - 51,348 (Pivot)

Support - 50,933, 50,651, 50,235

Resistance - 51,630, 52,046, 52,328

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Did you know?

India's PMI head north

India's Manufacturing PMI (purchasing managers index) in October 2024 stood at 57.5, up from an eight-month low of 56.5 in September, as manufacturing activity rebounded driven by demand.

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