Summary of the Day's Market Performance

• Indian equity indices ended sharply lower on October 22, with Nifty closing below 24,500.

• The Sensex dropped by 930.55 points or 1.15%, closing at 80,220.72, while the Nifty fell by 309.00 points or 1.25%, finishing at 24,472.10.

• BSE midcap and smallcap indices saw deeper cuts, down 2.5% and 3.8% respectively.

• Sector-wise performance: All sectoral indices were in the red, with auto, capital goods, metals, power, realty, telecom, media, and PSU banks falling by 2-3%.

Performance of Key Sectors

• Auto, Metal, Power: Sectors like auto, capital goods, and metals faced intense selling pressure amid bearish global and domestic cues.

• Smallcap and Midcap: Small and midcap stocks saw sharp corrections, underlining the prevailing risk-off sentiment.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-3,978.61 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹5,869.06 crore (Net Buyers)

Foreign Institutional Investors (FII) continued heavy selling as rising US bond yields hampered expectations of aggressive rate cuts by the US Fed, shifting fund flows away from emerging markets. However, Domestic Institutional Investors (DII) stepped in with significant purchases, softening the blow.

• The market's bearish sentiment deepened as volatility remained high, with midcaps and smallcaps suffering the brunt.

• Rising US bond yields signaled reduced chances of rapid US Fed rate cuts, affecting fund flows into Indian equities.

• Despite the downturn, the Reserve Bank of India's (RBI) latest bulletin upheld India’s GDP growth forecast at 7.2% for FY25. It stated that the Q2 slowdown is temporary and a recovery is expected during the festive season, which may ease the pressure on earnings downgrades.

• US Bond Yields Surge: A sharp rise in US bond yields has dampened expectations for aggressive rate cuts by the US Fed, reducing liquidity flow into emerging markets like India. This has added to the selling pressure in the Indian equity market.

Key Stock Movements and News

• Top Gainers: ICICI Bank, Nestle India, Infosys.

• Top Losers: Adani Enterprises, M&M, Bharat Electronics, Coal India, Tata Steel.

• Hyundai India: Shares declined over 6% after a muted stock market debut at ₹1,934, down 1.32% on the NSE, later plunging to ₹1,842.

• NBCC: Arm HSCC secured a ₹1,322.5 crore order from the Government of India.

• Ola Electric: Resolved 99% of complaints received from the CCPA.

• Paytm: Reported Q2 consolidated net profit of ₹928.3 crore vs. a loss of ₹290.5 crore YoY.

• Ambuja Cements: To acquire Orient Cement for ₹8,100 crore.

• Zomato: Posted a Q2 net profit of ₹176 crore vs. ₹36 crore YoY.

• Brokerage Ratings:

  • City Union Bank: Investec maintained a 'buy' call with a target price of ₹200.

  • Bajaj Housing Finance: HSBC retained a 'reduce' rating with a target price of ₹110.

• Paytm: With a significant turnaround to profit in Q2, the stock may gain attention.

• Ambuja Cements: Set to acquire Orient Cement, increasing market consolidation.

• NBCC: Positive momentum following its subsidiary's large government order.

The Indian stock market extended its bearish run on October 22, with Nifty falling below 24,500 amid concerns over rising US bond yields and weak domestic earnings. FIIs continued heavy selling, while DIIs provided some cushion. Sectors across the board faced steep declines, with small-caps and midcaps being particularly hard hit. However, the RBI's positive growth outlook and festive season optimism could help stabilize sentiment in the near future.

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice.

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