Summary of the Day's Market Performance

• Indian equity indices ended lower on October 21, with Nifty closing below 24,800.

• The Sensex slipped by 73.48 points or 0.09%, closing at 81,151.27, while the Nifty declined by 72.90 points or 0.29%, ending at 24,781.10.

• BSE midcap and smallcap indices shed 1.5% each, reflecting broader market weakness.

• Sector-wise performance: All sectoral indices ended in the red except for auto, with FMCG, metals, capital goods, power, IT, and oil & gas down 1-3%.

Performance of Key Sectors

• Auto: The only sector that managed to remain positive, with Bajaj Auto, M&M, and Eicher Motors among the gainers.

• FMCG, Metal, IT, and Realty: These sectors faced significant selling pressure, contributing to the market's downward trajectory.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-2,261.83 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹3,225.91 crore (Net Buyers)

Foreign Institutional Investors (FII) continued to sell off due to valuation concerns and weaker corporate earnings, while Domestic Institutional Investors (DII) mitigated the decline with significant purchases.

• The market showed considerable volatility, fluctuating between gains and losses as investors responded to mixed signals.

• The People's Bank of China (PBOC) further reduced interest rates by 25 bps to support its economy, leading FIIs to focus on China while offloading Indian stocks.

• Domestic Q2 earnings have been largely underwhelming, especially from private sector banks, leading to negative sentiment. However, DII support provided a buffer to the market.

• China's Interest Rate Cut: The People's Bank of China has reduced interest rates by 25 basis points to stimulate its struggling economy, leading to increased FII inflows into China while FIIs continue selling in India due to corporate earnings concerns.

Key Stock Movements and News

• Top Gainers: HDFC Bank, Bajaj Auto, Asian Paints, M&M, Eicher Motors.

• Top Losers: Tata Consumer Products, Kotak Mahindra Bank, BPCL, IndusInd Bank, Bajaj Finserv.

• PB Fintech: Received RBI approval for its arm PB Financial Account Aggregators to begin NBFC operations.

• Bank of Maharashtra: Raised its marginal cost of funds-based lending rate.

• PTC Industries: Announced plans to acquire 100% shareholding in Trac Precision Solutions.

• Canara Bank Tanzania: Its assets and liabilities are being sold to Exim Bank Tanzania, with approval from the Bank of Tanzania.

• PG Electroplast: To issue equity shares or convertible securities worth up to ₹1,500 crore via QIP.

• Tejas Networks: Shares surged +10% due to optimism around its 4G expansion and upcoming opportunities.

• Stanley Lifestyles: Gained +4% after ace investor Mukul Agrawal acquired a 1.58% stake in the company.

• Raymond Lifestyle: Rose +2% after Motilal Oswal initiated coverage, projecting a +30% upside potential.

• HDFC Bank: Goldman Sachs reiterated its 'buy' rating with a target price of ₹2,156.

• Tech Mahindra: Nomura maintained its 'buy' rating with a target of ₹1,900.

• Tejas Networks: Positive on 4G expansion prospects.

• Stanley Lifestyles: Investor interest from Mukul Agrawal has driven momentum.

• Raymond Lifestyle: Brokerage coverage with a high upside potential.

• HDFC Bank: Continues to be a top pick for institutional investors with bullish targets.

The Indian equity market ended on a weak note on October 21, with Nifty below 24,800 as selling pressure persisted across key sectors like FMCG, metals, and IT. FIIs continued their exit from Indian equities amid concerns over weak corporate earnings, while DIIs stepped in to provide some support. Auto stocks were the only bright spot, and companies like Tejas Networks and Stanley Lifestyles saw notable gains.

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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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