Summary of the Day's Market Performance

• The Indian equity markets ended the session on a weak note on October 7, as volatility remained high.

• The Sensex dropped by 638.45 points to close at 81,050.00, while the Nifty fell by 218.80 points, closing at 24,795.80.

• The BSE Midcap index lost 2%, and the Smallcap index declined by over 3%.

Performance of Key Sectors

• All sectoral indices, except IT (up 0.6%), ended in the red. The worst-hit sectors were PSU Bank, healthcare, capital goods, realty, metal, power, oil & gas, media, and telecom, which dropped between 1-3%.

Market Transactions:

• Foreign Institutional Investors (FII): ₹-8,293.41 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹13,245.12 crore (Net Buyers)

Foreign institutional investors continued to sell Indian equities, while domestic institutions stepped in as net buyers, but their efforts were insufficient to halt the market's decline.

• Valuations and FIIs: Expensive valuations have driven foreign investors to reduce their exposure to Indian stocks, resulting in sectoral drag. Despite optimism in other Asian markets, Indian equities remain under pressure.

• Political Risk: The political landscape is adding to market uncertainty, with exit polls creating concerns over potential shifts in government policies.

• Biggest Weekly Fall Since June 2022: The market recorded its largest weekly drop since June 2022, erasing nearly ₹18 lakh crore in market capitalization.

• Nifty Down Nearly 5%: After snapping a 3-week gaining streak, the Nifty dropped by almost 5% this week, with the Nifty Realty index plunging by 8%.

• Sectoral Performance: All sectoral indices, except Nifty Metal, ended lower.

Key Stock Movements and News

• Biggest Nifty Losers: NTPC, Adani Ports, Adani Enterprises, SBI, and Coal India were the major losers.

• Biggest Nifty Gainers: ITC, Bharti Airtel, Trent, M&M, and Infosys were among the few gainers.

• LIC of India: Increased its stake in Apollo Tyres, signaling long-term confidence in the stock.

• Bharti Airtel: Partnered with Fortinet to launch 'Airtel Secure Internet,' a comprehensive online security solution.

• Jio Financial and BlackRock: SEBI granted in-principle approval for them to act as co-sponsors and set up a mutual fund, potentially increasing competition in the financial services sector.

• BLS International: Acquired a 100% stake in Citizenship Invest, expanding its global presence.

• Paytm: Dropped by -6% after the abrupt resignation of its CTO, which has raised concerns over leadership stability. Deependra Singh Rathore was appointed as the new CTO.

• CG Power: Signed an Asset Purchase Agreement with Renesas Electronics Corp, signaling potential growth in its electronics division.

• Antony Waste Handling: Secured a ₹908 crore contract, boosting its growth prospects in the waste management sector.

• Natco Pharma: Gained +3% after Mylan Pharma and Novo settled a US patent dispute over a generic version of Ozempic, which could benefit Natco in the US market.

• Senco Gold: Rallied 10% intraday before surrendering gains after announcing a 1:2 stock split and a ₹500 crore fundraising.

• Bharti Airtel: Its partnership with Fortinet could boost its online security offerings, positioning the stock for potential growth.

• Natco Pharma: Positive developments in the US market regarding the Ozempic generic drug dispute could propel the stock upward.

• Antony Waste Handling: The new contract worth ₹908 crore strengthens its position in the waste management sector and makes it a stock to watch.

• Senco Gold: Despite intraday volatility, the stock split and fundraising plans could make it an attractive buy in the near term.

The Indian markets remained under pressure as political uncertainty, expensive valuations, and foreign fund outflows weighed on sentiment. The bearish trend continues, with most sectors facing selling pressure, except IT, which offered a defensive play for investors. The outlook remains cautious, with geopolitical tensions and domestic political risks likely to dictate market direction in the near term. Investors are advised to remain cautious and focus on stocks with strong fundamentals and potential sectoral tailwinds.

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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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