Summary of the Day's Market Performance

• The markets continued their losing streak for the 4th consecutive session, with the Nifty closing down by 36.10 points (-0.15%) at 24,399.40, and the Sensex losing 16.82 points (-0.02%) to close at 80,065.16.

• Broader indices also slipped with Midcaps down by 0.3% and Smallcaps by 0.2%.

• It was a mixed performance sector-wise: PSU Banks gained 1.2%, while FMCG (-2.8%) and Real Estate (-1.1%) faced significant selling pressure.

Performance of Key Sectors

• PSU Banks: Led the gainers with strong buying interest, gaining 1.2%, driven by healthy earnings and a positive sector outlook.

• FMCG: Struggled with delayed demand recovery and margin pressures, leading to a sharp decline of 2.8%.

• Real Estate: The sector was under pressure, down 1.1%, as broader valuation corrections took a toll on sentiment.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-5,062.45 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹3,620.47 crore (Net Buyers)

Despite continued selling from Foreign Institutional Investors (FII), Domestic Institutional Investors (DII) remained net buyers, cushioning the markets from a steeper decline. The release of India’s strong October PMI data, supporting robust economic growth forecasts, also helped limit the losses.

• While FIIs have been aggressively selling amid global concerns, the India PMI data has offered some optimism, indicating sustained economic activity.

• The PSU and Banking sectors remained resilient, benefiting from earnings strength and sector rotations.

• On the other hand, FMCG stocks faced a sharp correction due to concerns over demand recovery, exacerbated by pressure on operating margins.

• PMI (Purchasing Managers' Index): A key indicator of economic health in the manufacturing sector. India’s October PMI data suggests continued expansion, supporting the Reserve Bank of India’s growth forecast for FY25.

Key Stock Movements and News

• Top Gainers:

  • Ashapura Minechem Ltd (+4.16%),

  • Oriental Trimex Ltd (+2.35%),

  • Lexus Granito (India) Ltd (+1.87%),

  • Gujarat Mineral Development Corporation Ltd (+0.76%),

  • Coal India Ltd (+0.67%).

• Top Losers:

  • 20 Microns Ltd (-2.00%),

  • MOIL Ltd (-1.63%),

  • The Orissa Minerals Development Company Ltd (-1.18%),

  • NMDC Ltd (-1.12%),

  • Aro Granite Industries Ltd (-1.02%).

• Hindalco: Plummeted more than 6% intraday after weak earnings from rival Constellium sparked concerns for the future growth of Hindalco’s subsidiary, Novelis.

• Paytm: Jumped 3% after Citi upgraded the stock, forecasting an 18% upside from current levels.

• LT Foods: Declared an interim dividend of ₹0.5 per share, but its stock dropped 8% amid profit booking.

• Zomato: Announced an increase in platform fees to ₹10 across select cities, drawing attention from investors.

• M&M: Potentially considering acquiring a 50% stake in Škoda Auto’s India business, which could expand its automotive footprint.

• Escorts Kubota: Fell nearly 10% after announcing the sale of its railway business.

• John Cockerill: Secured an order worth ₹105 crore from Jindal India.

• Paytm: With a recent upgrade by Citi and a projected 18% upside, it remains in focus.

• M&M: Speculation over a 50% stake in Škoda Auto’s India business makes it an interesting stock to track.

• Hindalco: After the sharp fall, investors may look for buying opportunities if recovery signals emerge.

The Indian market ended in the red for the fourth straight day, with Nifty and Sensex seeing minor losses. FIIs remained heavy sellers, but DIIs offered some support. PSU Banks stood out as top gainers, while the FMCG and Real Estate sectors faced substantial selling pressure. With strong PMI data offering some relief, sectors like IT and PSU Banks are expected to continue attracting attention, while FMCG and Real Estate may remain under pressure in the near term.

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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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