KNR Constructions Hits Highs

?Aaj Ka Bazaar

?The US market experienced fluctuations before closing slightly lower overnight, as investors took the opportunity to book profits following the recent post-election rally. A much-anticipated report on consumer price inflation is set to be released on Wednesday, while other reports concerning producer price inflation, retail sales, and industrial production are expected to garner attention later in the week. Asian markets opened lower this morning, and the dollar continued its post-election rally in anticipation of today's US consumer price inflation data. Indian market may also drift lower on Wednesday as investors react to weak global cues and signs of rising domestic inflation. Global sentiment remains fragile due to uncertainty over the US-President-election Trump's and Fed policies. India's consumer price inflation accelerated in October to the highest level in more than a year amid rising food costs, data from the National Statistical Office revealed Tuesday. On stock-specific news, Varun Beverages announces Rs. 1,631 crore acquisitions in Tanzania, Ghana and India to expand its global footprint.

?Markets Around Us?

BSE Sensex - 78,687.00 (0.02%)

Nifty 50 - 23,829.95 (-0.22%)

Bank Nifty - 51,274.40?(0.23%)

Dow Jones - 43,894.65 (-0.03%)

Nasdaq - 19,281.87 (-0.09%)

FTSE - 8025.77 (-1.24%)

Nikkei 225 - 38,986.42 (-0.99%)

Hang Seng - 19717.46?(-0.66%)

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Sector: Constructions

KNR constructions Gains 14% on strong Q2FY25

?KNR Constructions' stock surged 14% to ?324 on November 13 following impressive Q2FY25 results. The company reported a 310% YoY increase in net profit to ?585 crore, alongside an 87% YoY rise in revenue, reaching ?1,945 crore. Operating profit (EBITDA) rose 275% YoY to ?870 crore, with EBITDA margins expanding by 22.42 percentage points to 44.7%. Despite the strong performance, brokerage ratings remain mixed, with five recommending a "buy," six a "hold," and six a "sell." This year, KNR stock has outperformed the Nifty 50 significantly.

?Why it Matters:

?KNR Constructions' strong Q2 performance demonstrates its ability to scale profitably, with significant margin expansion and revenue growth, even amid a mixed brokerage outlook. The company’s substantial rise in net profit and revenue highlights improved efficiency and robust demand in its core sectors.?

?NIFTY 50 GAINERS

BHARTIARTL - 1565.10?(0.61%)

NTPC- 382.55?(0.59%)

HDFCBANK - 1728.05?(0.57%)

NIFTY 50 LOSERS

BEL - 284.00 (-2.12%)

HEROMOTOCO - 4626.60 (-2.07%)

M&M - 2839.95?(-2.02%)

Sector: Breweries & Distilleries

Sula vineyards shares drop 6% on disappointing Q2FY25 earnings

?Shares of Sula Vineyards dropped over 6% on November 13 following a weaker-than-expected Q2 earnings report. The company's consolidated net profit declined by 37% year-over-year to ?14.48 crore, while total revenue dipped slightly, and expenses increased by 10%. This led to a contraction in EBITDA margins from 31.4% to 24.2%. CEO Rajeev Samant attributed the subdued quarter to weaker consumer demand in urban areas and technical issues with New Delhi’s Excise portal, which hindered order processing. Sula’s wine tourism revenue and own-brand sales saw minimal growth.

?Why it Matters:

The drop in Sula Vineyards’ profits highlights slowing demand for discretionary consumer goods, particularly in urban areas. Rising expenses and logistical challenges, like issues with New Delhi's Excise portal, have further pressured the company’s margins.

Around the World

Asian stocks declined on Wednesday, following losses in Wall Street as the post-election rally slowed down. Investors were cautious ahead of U.S. inflation data, with concerns about future Federal Reserve actions. Chinese markets were weighed down by disappointing fiscal measures, while uncertainty about Donald Trump’s presidency added to market pressure. The upcoming U.S. consumer price index report kept investors on edge, with many expecting persistent inflation. Meanwhile, broader Asian markets, including Japan, South Korea, and Australia, saw losses, while Indian stocks were poised for a weaker opening following a drop in the previous session.

Option Traders Corner

?Max Pain

Nifty 50 - 23,787

Bank Nifty - 51,203

Nifty 50 - 23,988 (Pivot)

Support - 23,734, 23,585, 23,331

Resistance - 24,137, 24,391, 24,540

Bank Nifty - 51,444 (Pivot)

Support - 50,720, 50,282, 49,557

Resistance - 51,882, 52,606, 53,044

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?FPIs on a selling spree

The net sales made by foreign portfolio investors in the Indian equity market in November so far stood at ?7,111 crore, on top of a net outflow of ?1.14 lakh crore in October.

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