Summary of the Day's Market Performance

• Indian equity indices ended lower on October 16 with Nifty falling below the 25,000 mark.

• Sensex dropped 318.76 points or 0.39% to 81,501.36, and Nifty was down 86 points or 0.34% at 24,971.30.

• BSE Midcap index remained flat, while Smallcap index rose by 0.3%.

• Mixed sectoral performance: Oil & Gas, Realty, and Telecom indices saw gains, while Auto, IT, Pharma, and Media declined 0.5-1%.

Performance of Key Sectors

• Gainers: Oil & Gas, Realty, and Telecom sectors ended in the green.

• Losers: Auto, IT, Pharma, and Media sectors were under pressure, down 0.5-1%.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-3,435.94 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹2,256.29 crore (Net Buyers)

Foreign Institutional Investors (FII) continued to remain net sellers, while Domestic Institutional Investors (DII) showed buying support.

• The market traded in a narrow range with a negative bias due to concerns about a potential downgrade in FY25 earnings, which could affect premium valuations.

• Q2FY25 earnings expansion is anticipated to be slow, driven by tepid demand and fluctuating input costs. The pace of recovery from Q1 to Q2 has been lower than expected.

• India's trade deficit narrowed to a 5-month low, providing some relief despite broader market concerns.

India September Trade Data:

• Trade Deficit: $20.8 billion (5-month low)

• Exports: $34.58 billion (vs $34.41 billion YoY)

• Imports: $55.36 billion (vs $54.49 billion YoY)

• IndIndia's Trade Deficit: The trade deficit is the difference between the country's imports and exports. A narrowing deficit indicates either a decrease in imports or a rise in exports, suggesting better economic health.

Key Stock Movements and News

• Top Gainers: HDFC Life, Dr Reddy's Labs, Grasim Industries, Bharti Airtel, HDFC Bank.

• Top Losers: Trent, M&M, Hero MotoCorp, Infosys, Adani Ports.

• Adani Energy Solutions: Gained +3% after acquiring two electrical utility companies, Navinal Transmission, and JTL Projects.

• Oil India: Dropped 7% as crude prices declined.

• Bajaj Auto: Q2 preview indicates revenue may rise by 23% on strong volumes and a rich product mix.

• HDFC Life: Jefferies raised its target to ₹850, maintaining a 'buy' rating.

• Cochin Shipyard: Fell 4% as an offer for sale (OFS) to sell a 5% stake opened at a discount.

• Sterlite Technologies: Rallied 6% after pushing forward with a new AI Data Center project.

• RailTel Corporation: Secured a ₹79.84 crore order from MHADA.

• HDFC AMC: Hit a record high with a +6% gain after strong Q2 results.

• Bharti Airtel: HSBC upgraded to 'buy', raising the target to ₹1,950 from ₹1,325.

• Zomato: UBS maintained its 'buy' rating, with a target of ₹320.

• HDFC AMC: Strong Q2 results may continue to drive momentum.

• Sterlite Technologies: Potential growth from AI data center projects.

• Adani Energy Solutions: Expansion through new acquisitions.

• Bajaj Auto: Positive outlook ahead of Q2 results.

• Bharti Airtel: Upgraded to 'buy', with a raised target of ₹1,950.

The market remained range-bound with Nifty dropping below 25,000, driven by concerns about potential downgrades in earnings growth for FY25. Slow recovery expectations and fluctuating input costs impacted investor sentiment. Despite these challenges, certain sectors like Oil & Gas and Realty performed well, while sectors like Auto and IT faced declines. With India's trade deficit improving, market participants are cautiously observing global economic developments and upcoming earnings reports.

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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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