Summary of the Day's Market Performance

• Indian equity indices closed lower again on October 25, with the Sensex dropping by 662.87 points (-0.83%) to 79,402.29 and the Nifty down by 218.60 points (-0.90%) to 24,180.80.

• Midcap and Smallcap indices faced severe losses, falling by 1.5% and 2.4% respectively.

• Across sectors, only FMCG managed a slight gain (+0.5%), while auto, capital goods, metal, oil & gas, power, telecom, and media sectors declined by 1-2%.

Performance of Key Sectors

• FMCG: The lone sector in green, supported by safe-haven buying as other sectors faltered.

• Auto, Capital Goods, Metal, Oil & Gas, Telecom: Hit by broad market selloffs, all declined by 1-2% amid ongoing FII withdrawals and weaker-than-expected Q2 earnings.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-3,036.75 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹4,159.29 crore (Net Buyers)

Foreign Institutional Investors (FII) continued heavy selling, further dampening investor sentiment. Domestic Institutional Investors (DII) remained net buyers, helping offset some of the market losses.

• The Sensex dropped below the 80,000 mark as markets witnessed their longest weekly losing streak since August 2023, driven by disappointing Q2 earnings and relentless FII selloff.

• The announcement of a Chinese stimulus failed to provide any significant boost while falling crude oil prices reflect ongoing global economic challenges.

• Key highlights from this week’s trading:

  • 46 of 50 Nifty stocks posted losses, with declines of up to 22%.

  • Mid and Small-cap indices recorded their biggest weekly loss since December 2022.

• Longest Losing Streak Since August 2023: This four-week decline marks the most prolonged downturn in the Indian stock market in over a year, underscoring investor concerns about sluggish earnings growth and global economic headwinds.

Key Stock Movements and News

• Top Gainers:

  • ITC, Sun Pharma, Britannia Industries, HUL, Axis Bank

• Top Losers:

  • IndusInd Bank, BPCL, Adani Enterprises, Shriram Finance, M&M

• Capacit’e Infraprojects: Secured work orders worth ₹1,203 crores from Signatureglobal.

• Shriram Properties: Came under investigation, with ED officials conducting search activities at its office premises.

• Jubilant Pharmova: Its subsidiary voluntarily prepaid a USD 25 million term loan.

• Dalmia Bharat: Its arm is set to acquire a 5.39% equity stake in Atria Wind Power.

• Godrej Properties: Acquired a 7.5-acre luxury housing plot on Gurgaon’s Golf Course Road, expecting to generate revenue over ₹5,500 crore.

• Larsen and Toubro: Declined 3% after UBS downgraded the stock, with a revised target price of ₹4,000 per share from the previous ₹4,440.

• Aadhaar Housing Finance: The focus will be after Mirae Asset initiated coverage, forecasting a 35% upside from current levels.

• Godrej Properties: With a new luxury plot acquisition, it shows promising potential for revenue growth.

• Aadhaar Housing Finance: Recently covered by Mirae Asset with a positive outlook, it might attract investors.

The market ended lower again, with key indices posting their fourth consecutive weekly loss. FIIs continued to sell heavily, creating pressure across sectors, despite some stability from DIIs. With weak earnings and subdued global sentiment weighing on investor confidence, the PSU and Banking sectors remain areas to watch as they attract safe-haven flows.

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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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