Summary of the Day's Market Performance

• Sensex and Nifty both declined over 1%, with Sensex closing down by 1.13% and Nifty by 1.24%.

• Midcap index dropped by 1.3%, and Smallcap fell by 2%, mirroring the overall market decline.

• Real Estate (-2.9%) and Energy (-2.6%) saw the steepest declines, with bearish outlooks in both sectors.

• IT held relatively steady and closed flat, bucking the broader negative trend.

Performance of Key Sectors

• Real Estate (-2.9%) and Energy (-2.6%) saw the steepest declines, with bearish outlooks in both sectors.

• IT held relatively steady and closed flat, bucking the broader negative trend.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-4,329.79 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹2,936.08 crore (Net Buyers)

Persistent selling by FIIs continued to dent market sentiment, while DII inflows attempted to cushion the fall but were insufficient to reverse the negative trend.

• Underperforming Peers: The Indian market, with its excess valuations, is lagging behind global peers. Ongoing FII outflows, combined with weak Q2 earnings, are dampening investor confidence.

• Short-term Volatility Expected: Key global events, including the US presidential election and major central bank policy decisions (US Fed and BoE), are likely to drive heightened volatility in the near term.

• America’s election kicks off tomorrow! Whatever happens in the land of the free affects Indian markets too especially since this will be an EXTREMELY close race.

Key Stock Movements and News

• Top Gainers:

  • Firstsource Solutions Ltd, Fine Organic Industries Ltd, DSJ Keep Learning Ltd, GE Power India Ltd, Thyrocare Technologies Ltd

• Top Losers:

  • Interiors & More Ltd, Johnson Controls-Hitachi Air Conditioning India Ltd, Edelweiss Financial Services Ltd, Emami Ltd

• Oil Marketing Stocks: IOC, BPCL, and HPCL stocks plunged by around 5% following a bearish note from Goldman Sachs, citing high downside risks after recent Q2 results.

• Goldman Sachs on Tata Power: Despite the recent rally, Tata Power shares are considered overvalued by CLSA, which projects a potential 33% downside based on current fundamentals.

• Afcons Infra: Rebounded by 13% after its debut, following the news that it’s the lowest bidder for a ₹1,007-crore project.

• Ashok Leyland: Reported a 9% drop in total sales, falling from 16,864 to 15,310 units.

• Gensol Engineering: Jumped 5% after winning a ₹780 crore solar PV project.

• Azad Engineering: Gained 7% on securing a significant ₹700 crore order from Mitsubishi Heavy.

• Gensol Engineering: A strong order book in the renewable energy space positions it as a potential leader.

• Afcons Infra: The recent project win could bolster future prospects and may stabilize after the debut volatility.

The Indian equity market ended on a downtrend again today, dragged by FII selling and weak corporate earnings. Real Estate and Energy led the declines, while IT managed to remain stable in an otherwise red market. Investors should brace for potential short-term volatility as key economic events loom large globally. Stocks such as Gensol Engineering and Ashok Leyland are emerging as notable performers despite the broader market challenges, offering some avenues for investor focus.

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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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