Summary of the Day's Market Performance

• The Indian benchmark indices ended their six-day losing streak on October 8, driven by strong buying across sectors.

• The Sensex surged by 584.81 points (+0.72%) to close at 81,634.81, while the Nifty rose by 217.40 points (+0.88%) to reclaim 25,013.20.

• The BSE Midcap and Smallcap indices outperformed, rising nearly 2% and 2.5% respectively.

Performance of Key Sectors

• Except for the metal sector, all other indices ended in the green, with gains of 1-2% in auto, banking, healthcare, realty, capital goods, power, telecom, and media.

Market Transactions:

• Foreign Institutional Investors (FII): ₹-5,729.60 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹7,000.68 crore (Net Buyers)

Despite continued foreign fund outflows, domestic institutional investors provided crucial support, helping markets bounce back.

• Election Impact: The ruling party’s historic win in Haryana defied exit polls, creating political stability that bolstered market sentiment. PSU stocks, in particular, rallied sharply following this news.

• RBI Policy: The market is pricing in no rate cuts but anticipates a change in stance to neutral, which could offer additional support to liquidity and investor sentiment.

• Sectoral Performance: Auto, banks, and realty stocks led the recovery, reflecting increased optimism in sectors that were beaten down in prior sessions. IT stocks, driven by defensive plays, also helped stabilize the market.

• A positive state election result for the ruling party, contrary to exit polls, provided a boost to market sentiment, bringing optimism for political stability.

Key Stock Movements and News

• Biggest Nifty Gainers: Trent, Adani Enterprises, Adani Ports, Bharat Electronics (BEL), and M&M led the charge on the Nifty index.

• Biggest Nifty Losers: Tata Steel, SBI Life Insurance, Titan Company, JSW Steel, and Bajaj Finserv struggled amid profit-taking.

• PSU Rally: Shares of Public Sector Enterprises (PSE) like PFC and BEL surged, with the Nifty PSE Index up 2%, driven by the ruling party’s election victory in Haryana.

• Hyundai Motor India: The upcoming IPO, expected to raise ₹25,000 crore, set the price band at ₹1,865-1,960 per share, making it one of the largest issues to hit the market soon.

• Paytm: Soared 16%, marking its best single-day gain since February 2023, as investor sentiment improved.

• Zomato: Continued to rally, supported by positive analyst sentiment from HSBC and Motilal Oswal, who raised the target price to ₹330 from ₹260, driven by strong performance from Blinkit.

• Airtel: Partnered with Nokia for a 'Green 5G' initiative, a move that aligns with sustainable technology development.

• NSDL IPO: SEBI approved the much-awaited IPO for the National Securities Depository Limited (NSDL).

• Bajaj Housing Finance: Reversed losses from the previous day, locking in an upper circuit.

• HEG: Shares soared 6% after acquiring an 8.23% stake in rival GrafTech International for ₹248.62 crore, strengthening its position in the global market.

• SpiceJet: Shares jumped 9% as the airline announced fleet expansion plans and continues its turnaround efforts after raising ₹3,000 crore through a Qualified Institutional Placement (QIP).

• Ola Electric Mobility: Received a show-cause notice from the Central Consumer Protection Authority, which could weigh on the stock's performance.

• Zomato: With a strong performance from Blinkit and a positive analyst outlook, Zomato is expected to maintain upward momentum.

• Hyundai Motor India: Investors should keep an eye on the upcoming IPO, which is anticipated to be a significant event in the Indian market.

• Paytm: After a sharp rally, the stock remains in focus as investor sentiment continues to recover.

• SpiceJet: Fleet expansion and turnaround efforts make it a stock to watch, though regulatory issues might affect sentiment.

• BEL: Following the strong rally on political optimism, BEL could see continued strength in the short term.

Indian markets bounced back after a six-day losing streak, with optimism driven by positive election results and hopes for an improved earnings season. The rebound was broad-based, with gains across most sectors, except metals. Political stability and domestic liquidity support from DIIs helped offset continued FII outflows. Looking ahead, the RBI policy stance and Q2 earnings are likely to play pivotal roles in market direction.

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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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