Summary of the Day's Market Performance

• Indian equity indices ended slightly lower on October 23, with Nifty slipping below 24,450.

• The Sensex dropped 138.74 points or 0.17% to close at 80,081.98, and the Nifty was down by 36.60 points or 0.15%, closing at 24,435.50.

• In contrast, BSE Midcap was up by 0.5%, and Smallcap indices rose 1%, showing signs of bargain hunting.

• Sector-wise performance: The IT index gained over 2%, while capital goods, power, and pharma sectors dropped 1% each.

Performance of Key Sectors

• IT Sector: Continued its rally with over a 2% gain, supported by positive earnings from major players.

• Midcaps & Smallcaps: These segments attracted bargain hunting after recent sharp declines, though the sustainability of this recovery is yet to be seen.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-5,684.63 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹6,039.90 crore (Net Buyers)

Foreign Institutional Investors (FII) continued to offload positions, driven by global risk-off sentiment, particularly as the US 10-year yield rose, indicating slower rate cuts by the US Fed. Domestic Institutional Investors (DII) stepped in with solid buying, helping prevent a deeper slide.

• The market sentiment remained gloomy, weighed down by tepid earnings and continued selling by FIIs.

• Despite this, midcap and smallcap stocks saw buying interest after their recent corrections, though this momentum-driven buying could be short-lived if broader market sentiment doesn’t improve.

• The US 10-year yield’s rise further dampened expectations for swift Fed rate cuts, signaling ongoing caution among investors toward emerging markets like India.

• US 10-Year Treasury Yield: A key global indicator, the US 10-year Treasury yield has been inching higher, suggesting that the US Federal Reserve may take a more cautious approach to future rate cuts. This often shifts capital flows away from emerging markets, including India, as investors seek safer returns in developed economies.

Key Stock Movements and News

• Top Gainers: Bajaj Finance, Bajaj Auto, Tech Mahindra, HCL Tech, Tata Consumer.

• Top Losers: M&M, Sun Pharma, NTPC, Power Grid Corp, Shriram Finance.

• Paytm: Gained approval from NPCI to onboard new UPI users, pushing its shares higher.

• Zomato: Rose 3% after announcing inline Q2 results and fundraising plans, with brokerage targets ranging between ₹330-350.

• GMR Airports: Rose 2% following reports of raising ₹6,300 crore from the Abu Dhabi Investment Authority.

• Jyoti Structures: Secured a ₹450 crore order from Adani Energy Solutions.

• Aavas Financiers: Acquisition by Aquilo House Pte approved by the Competition Commission of India.

• Jio Financial: In talks with Allianz for an insurance partnership.

• Sona Comstar: Announced the acquisition of the railway equipment division of Escorts Kubota for ₹1,600 crore; Q2 net profit jumped 15% YoY.

• Sonata Software: Secured a new multi-year contract, boosting investor confidence.

• Jefferies: Maintained a ‘buy’ call on ICICI Prudential Life with a target price of ₹860.

• Paytm: With new UPI user onboarding approval, the stock may see continued positive momentum.

• Zomato: Recent results and fundraising plans have attracted positive brokerage upgrades.

• Sona Comstar: With a strong Q2 performance and strategic acquisition, it remains on the radar for growth.

The Indian market remained subdued on October 23, with Nifty hovering below 24,450 as weak earnings and FII outflows weighed on sentiment. However, midcap and smallcap stocks saw some recovery through bargain hunting. While FIIs continued their sell-off, DIIs provided some cushion with robust buying. With global concerns over US Fed rate cuts and mixed domestic earnings, the market may remain volatile in the near term, though selective stocks, particularly in IT and small-caps, showed signs of resilience.

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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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