As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 825.74 points or 1.26% to 64,571.88. The Nifty 50 index lost 260.90 points or 1.34% to 19,281.75.

The broader market underperformed the key indices. The S&P BSE Mid-Cap index fell 2.51% while the S&P BSE Small-Cap index slipped 4.18%.

Sellers outnumbered buyers. On the BSE, 645 shares rose, and 3187 shares fell. A total of 158 shares were unchanged.

As the earnings season intensifies, it will have a significant influence on the direction of the market. Investors will closely follow the financial performance of companies, which will provide insights into the overall health and outlook of various sectors. Additionally, global cues and developments in international markets will also impact the market trend.

The domestic stock market will remain shut on Tuesday, 24 October 2023 on account of Dussehra.

Economy:

India's forex reserves increased by $1.15 billion to $585.89 billion for the week ended October 13, said RBI on Friday. The jump in forex reserves came after multiple weeks of decline in India's forex reserve.

During the week, country's gold reserves increased by $1.268 billion to $43.575 billion, the RBI said. The Special Drawing Rights (SDRs) increased by $72 million to $17.995 billion, the apex bank said.

Stocks in Spotlight:

ICICI Bank fell 0.24%. The private lender's standalone net profit increased 35.77% to Rs 10,261 crore on 30.91% jump in total income to Rs 40,697.07 crore in Q2 FY24 over Q2 FY23. Net interest income (NII) increased 23.81% year on year (YoY) to Rs 18,308 crore in Q2 FY24 from Rs 14,787 crore posted in Q2 FY23. Net interest margin improved to 4.53% in Q2 FY24 as compared to 4.31% recorded in the corresponding quarter previous year.

Kotak Mahindra Bank declined 1.67%. The private sector lender's net profit rose 23.63% to Rs 3,191 on 24.22% increase in net total income to Rs 8,611 crore in Q2 September 2023 over Q2 September 2022. Net Interest Income (NII) for Q2FY24 increased to Rs 6,297 crore, from Rs 5,099 crore in Q2FY23, up 23% YoY. Net Interest Margin (NIM) was 5.22% for Q2FY24, higher than 5.15% in Q2FY23.

Yes Bank slipped 5.84%. The private lender's standalone net profit jumped 47.37% to Rs 225.21 crore on 24.76% increase in total income to Rs 7,920.68 crore in Q2 FY24 over Q2 FY23. Net interest income (NII) stood at Rs 1,925 crore for Q2FY24, registering de-growth of 3.3% year on year (YoY). Net interest margin (NIM) for Q2 FY24 was at 2.3% down nearly 30 bps as compared to 2.6% reported in Q2 FY23.

RBL Bank dropped 6.01%. The private lender reported grew 46% in standalone net profit to Rs 294 crore in Q2 FY24 from Rs 202 crore in Q2 FY23. Profit before tax in Q2 FY24 stood at Rs 90.63 crore, down 66.53% as against Rs 270.85 crore in Q2 FY23. The bank's total income climbed 29.40% YoY to Rs 3712.39 crore during the quarter. Net interest income grew 26% to Rs 1,475 crore in the second quarter of FY24. NIM was 5.54% vs 5.02% for Q2 FY23.

During the quarter ended 30 September 2023, the bank received income tax orders relating to matter under appeal resulting in write-back of tax provision for earlier years of Rs 222.92 crore (pre-tax of Rs 297.89 crore). The bank has used this amount to build contingent buffers of 100bps created on credit card & microfinance advances to prudently build reserves and strengthen the balance sheet; amounting to Rs 252 crore.

One 97 Communications (Paytm) slumped 7.18%. Paytm has reported a consolidated net loss of Rs 291.7 crore in Q2 FY24 as against a net loss of Rs 571.5 crore posted in Q2 FY23. Revenue from operations jumped 31.59% to Rs 2,518.6 crore in the quarter ended 30 September 2023 from Rs 1,914crore recorded in the same period last year.

CreditAccess Grameen rallied 7.96%. The company's standalone net profit surged 99.38% to Rs 349.21 crore in Q2 FY24 as compared with Rs 175.15 crore in Q2 FY23. Total income jumped 53.21% to Rs 1,247.59 crore in Q2 FY24 as compared with Rs 814.31 crore in corresponding quarter last year. Net interest income rose 49.6% to Rs 772.0 crore in Q2 FY24 from Rs 516.2 crore in Q2 FY23.

Mahindra Holidays & Resorts India tumbled 9.52% after the company reported 48% fall in consolidated net profit to Rs 21.34 crore in Q2 FY24 from Rs 40.86 crore in Q2 FY23. Revenue from operations rose by 10% to Rs 655.27 crore during the period under review as compared with corresponding period last fiscal.

Global Markets:

European stocks declined while Asian stocks fell for a fourth day today after a selloff in US markets deepened Friday. The prices of gold and crude oil also went down, and the value of the Japanese currency, yen, briefly weakened against the dollar, crossing the 150 mark. The decrease in gold and crude oil prices was influenced by traders closely monitoring the geopolitical situation in the Middle East.

Although there have been some positive developments, like two American hostages being released and aid being delivered to Gaza, there is still a risk of more conflict between Israel and Hamas, and there's concern that it could spread to involve other countries in the region.

On Friday, the US markets experienced significant declines, with the 10-year US treasury yield reaching its highest level since 2007. The S&P 500, Dow, and Nasdaq all experienced losses of varying degrees. Investors will be closely watching upcoming earnings reports and economic data releases. These factors are expected to have a significant impact on how the market moves in the future.

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