Disclaimer
The stock market is subject to significant volatility and inherent risks. Investing in stocks involves potential losses and is not guaranteed to generate profits. Prices of stocks can fluctuate unpredictably, We do not give any buy/sell tips. This article is for Educational purposes only.
I) Nifty: opened at 25065 and touched a high of 25234 then a low of 24947 and closed at 24981 with a total of - 31points in Negative
II) Bank Nifty: open 51161 and touched a high of 51707 then a low of 50903 and closed at 51007 With a total of - 14 points Negative
III) Fin Nifty: open 23518 and touched a high of 23824 then a low of 23467 and closed at 23546 With a total of + 93 points in Positive
IV) Nifty Mid Select: open 12938 and touched a high of 13029 then a low of 12927 and closed at 12974 With a total of + 99 points in Positive
Indian Stock Market Highlights - October 9, 2024 (Excluding Indices)
Today’s Indian stock market saw varied action across multiple sectors. The momentum shifted, with stocks from the automotive, energy, and technology sectors showing mixed performance. Below are key updates on major stocks and sectors.
India’s IT sector remained under pressure today, continuing its struggles due to global macroeconomic challenges. Shares of Infosys and Wipro extended their losses following weaker-than-expected quarterly results, as major clients have scaled back their spending amid recession fears in Europe and the U.S. TCS also followed the downward trend, with analysts downgrading earnings expectations in light of current economic conditions. However, the drop in IT stocks provided opportunities for value investors to accumulate shares at lower prices.
On the other hand, HCL Technologies and Tech Mahindra saw some recovery in afternoon trading, with analysts expressing cautious optimism regarding long-term demand for digital transformation services. Tech Mahindra's growth in new-age tech segments like AI, IoT, and cloud computing is expected to cushion the impact of global macroeconomic challenges.
The automobile sector witnessed mixed performance today. Shares of Tata Motors surged over 3% after the company reported strong domestic sales growth in the passenger vehicle segment, largely driven by demand for electric vehicles (EVs). The company's strategic focus on expanding its EV lineup has attracted investor confidence, particularly as EV adoption grows in India. Maruti Suzuki, however, remained flat, with no significant movement despite strong sales numbers, as investors remain cautious about potential production cuts due to rising input costs.
Mahindra & Mahindra saw a minor dip after reports surfaced about supply chain issues affecting tractor production. However, the company remains confident in meeting the robust rural demand in the coming months.
The energy sector gained traction today, especially with oil and gas companies showing resilience despite fluctuations in crude oil prices. Reliance Industries rebounded 1.5% after facing a series of volatile sessions in the last few days. The stock's upward move was fueled by reports of the company's aggressive expansion into green energy and its expected boost from the retail and telecom businesses.
Shares of ONGC and Oil India also gained marginally as global oil prices hovered above $85 per barrel. Rising crude prices have rekindled interest in these stocks, with analysts forecasting increased profitability in the coming quarters.
On the renewable energy front, Adani Green Energy saw an uptick of 2%, reflecting the continued investor enthusiasm toward clean energy stocks amid global energy transitions. The company has been securing several long-term power purchase agreements, providing visibility on future earnings.
Banks and financial institutions displayed varied performance today. HDFC Bank saw a slight uptick after analysts raised its target price, pointing out the bank’s continued strong growth in retail loans and deposit mobilization. Axis Bank also ended in the green, recovering from recent losses, as investors appeared optimistic about its solid loan growth and operational efficiency.
Meanwhile, SBI slipped marginally after analysts expressed concerns over rising bad loans in the corporate sector, particularly in the infrastructure space. The non-performing asset (NPA) issue remains a key concern for investors as macroeconomic uncertainties loom. Kotak Mahindra Bank traded flat today, as the market awaits further clarity on the leadership transition following Uday Kotak’s resignation.
Non-banking financial companies (NBFCs) like Bajaj Finance and Shriram Finance saw gains, thanks to robust demand for retail loans and personal finance products. NBFCs are expected to play a crucial role in the upcoming festive season, with an increase in consumer spending driving loan disbursements.
The metals sector witnessed some volatility today. JSW Steel and Tata Steel saw a minor correction following the global trend of falling steel prices. Rising concerns over China’s slowing demand for steel and oversupply issues in the domestic market are contributing to the sector's weakness. However, long-term demand driven by infrastructure projects in India remains strong, offering hope for recovery.
Hindalco surged 2.5% after a positive outlook on aluminum prices, driven by strong demand from the aerospace and automobile industries. The company's focus on reducing debt and expanding its downstream product portfolio has helped it weather current challenges.
FMCG stocks traded flat today, with most of the big names like HUL and Nestle India showing minimal movement. Investors are cautious due to rising inflationary pressures, which could impact margins in the short term. However, ITC showed modest gains as the company’s diversified business model, particularly its focus on the fast-growing non-cigarette FMCG segment, continues to attract investors.
The pharmaceutical sector remained in the spotlight today, with Dr. Reddy’s Laboratories gaining over 2% following positive news regarding its U.S. FDA approval for a new drug. Sun Pharmaceuticals also saw an uptick after announcing promising results from its specialty drug portfolio. Despite concerns around regulatory challenges, the long-term outlook for the sector remains positive as demand for healthcare services continues to grow both domestically and internationally.
Real estate stocks showed some strength, led by DLF and Godrej Properties, which gained around 2% each. The real estate sector has been a key beneficiary of lower interest rates and rising demand for housing, particularly in urban areas. With strong pre-sales numbers, these companies are expected to post solid earnings in the upcoming quarters.
Today's trading session reflected a balanced performance across different sectors. While IT and metals faced some headwinds, energy, auto, and pharma sectors provided a positive outlook for investors. As global economic uncertainties continue, Indian companies are expected to focus on long-term growth drivers like EVs, green energy, and digital transformation.
See Our Garuda Construction and Engineering Limited IPO Blog