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Market Recap 22-10-2024

Sebencapital

Published
22/10/24
Market Recap 22-10-2024


Indian Indices

I) Nifty: opened at 24798 and touched a high of 24882 then a low of 24445 and closed at 24472 with a total of - 309 points in Negative

II) Bank Nifty: open 52071 and touched a high of 52257 then a low of 51179 and closed at 51257 With a total of - 705 points Negative

III) Fin Nifty: open 24000 and touched a high of 24124 then a low of 23662 and closed at 23700 With a total of - 254 points in Negative

IV) Nifty Mid Select: open 12704 and touched a high of 12755 then a low of 12412 and closed at 12442 With a total of - 251 points in Negative


NSE Advance and Decline


Nifty 500 Top Gainer


Nifty 500 TOP LOSER


Sectoral Performance


Outperforming stocks vs nifty 500 over 1 week


Underperforming Stock vs Nifty 500 over 1 week


Stock With Rising Volume


Headlines

Indian Stock Market Highlights – October 22, 2024 (Excluding Indices)

1. Reliance Retail’s Expanding Presence

Reliance Retail has announced another strategic acquisition aimed at expanding its digital ecosystem. The company is reportedly in talks to acquire a stake in a prominent online pharmacy. This move comes as part of Reliance’s effort to consolidate its foothold in the healthcare sector, following the acquisition of Netmeds in 2020. The deal, expected to be worth around ₹1,500 crores, has sent positive waves across the retail and healthcare sectors.

The potential acquisition strengthens Reliance's e-commerce portfolio, helping it compete against other giants like Tata and Amazon in the fast-growing online pharmacy segment. Reliance Retail's stock saw a slight uptick on the back of this news, reflecting investor confidence in the company’s long-term strategy.

2. Tata Power Eyes EV Charging Expansion

Tata Power is ramping up its focus on electric vehicle (EV) charging infrastructure across India. The company has partnered with multiple state governments to develop charging stations for electric two-wheelers and four-wheelers. This initiative is in line with the government’s target of increasing EV adoption to reduce carbon emissions.

The EV segment is gaining momentum as Tata Power collaborates with prominent automobile manufacturers to establish over 25,000 charging points by 2025. This expansion plan has resulted in heightened market interest, with Tata Power's stock price registering moderate gains.

Additionally, Tata Motors, which also benefits from the EV push, saw a favorable rise in its stock price, driven by market optimism surrounding the broader EV ecosystem.

3. Adani Group Seeks to Monetize Green Assets

In a strategic shift, the Adani Group is reportedly exploring opportunities to monetize its green energy assets. According to industry sources, Adani Green Energy is in talks with global investors to sell a minority stake in its renewable energy portfolio. The group is targeting a valuation of nearly ₹10,000 crore from this transaction, which could support its debt reduction efforts and fuel new green energy projects.

The move aligns with Adani's long-term vision of becoming a global leader in sustainable energy. The potential inflow of foreign capital has boosted investor sentiment, resulting in a slight upward movement in the stock prices of both Adani Green Energy and Adani Enterprises.

4. Pharma Sector Sees Movement Post FDA Approval

Indian pharmaceutical companies Cipla and Dr. Reddy's Laboratories made headlines today following the FDA’s approval of their respective generic drug applications. Cipla received approval for a generic version of a leading asthma drug, which will be marketed in the U.S. and Europe. This approval is expected to generate substantial revenue for the company.

Similarly, Dr. Reddy's Laboratories received FDA clearance for a generic diabetes medication, strengthening its position in the global market. Both companies saw their stock prices rise following the announcement, driven by optimism regarding increased market share and export potential.

5. Vedanta's Restructuring Plans and Stock Market Reaction

Vedanta Ltd. announced plans for a corporate restructuring to unlock greater value for its shareholders. The company is looking to separate its metals and mining, oil and gas, power, and aluminum businesses into independent entities. This demerger plan is aimed at simplifying its business structure and allowing each segment to focus on its core operations more efficiently.

Vedanta's stock experienced mixed reactions throughout the day. While the news was met with initial excitement, some investors expressed concerns about execution risks and potential delays in the demerger process. However, long-term market participants appear optimistic about the benefits of the restructuring.

6. Zee Entertainment’s Merger with Sony: Final Approval Nearing

The much-anticipated merger between Zee Entertainment Enterprises Ltd. (ZEEL) and Sony Pictures Networks India is now one step closer to final approval. The merger, which will create one of India’s largest media companies, has been cleared by both companies' boards, and is now awaiting final regulatory approval. The combined entity will have a dominant presence in the broadcasting and streaming sectors.

This merger has been a key focus for investors, with Zee Entertainment’s stock seeing consistent gains over the last few weeks. Today, ZEEL stock was up marginally, as traders anticipate further upside once the merger is fully executed.

7. Infosys and HCL Tech Battle Margin Pressure

Amid growing concerns over global economic slowdowns and tightening IT budgets, Indian IT giants Infosys and HCL Technologies have reported challenges in maintaining their profit margins. While both companies have maintained steady revenue growth, increased competition, rising operational costs, and currency fluctuations have weighed on their profit margins.

HCL Tech, in particular, highlighted margin pressures in its Q2 earnings report, resulting in a slight dip in its stock price. Infosys, however, managed to hold steady after announcing a strategic partnership with a European banking giant, expected to drive higher revenues in the coming quarters.

8. Banking Stocks in Focus: HDFC Bank and Axis Bank

The banking sector witnessed some notable movements, with HDFC Bank and Axis Bank standing out. HDFC Bank's quarterly earnings report showed a 12% rise in net profit, driven by robust loan growth and improved asset quality. This strong performance, despite concerns over rising interest rates, led to a surge in the stock price.

On the other hand, Axis Bank reported a decline in its non-performing assets (NPAs), which positively impacted its stock. Investors welcomed the reduction in bad loans, boosting market confidence in Axis Bank's future prospects.

9. Telecom Sector: Airtel’s 5G Rollout

Bharti Airtel made strides in its 5G rollout, announcing plans to expand its 5G network to over 300 cities by the end of this year. The company’s aggressive investment in 5G infrastructure has kept it ahead of its competitors in the telecom race. Market participants view this as a positive long-term development for Airtel, although near-term concerns over high capital expenditure continue to weigh on the stock.

Overall, the Indian stock market saw a mixed trading session today, with sector-specific developments driving stock price movements. While the IT sector faced challenges, the banking, telecom, and pharmaceutical sectors saw strong performances.


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Written by Sauravsingh

Techpreneur and adept trader, Sauravsingh Tomar seamlessly blends the worlds of technology and finance. With rich experience in Forex and Stock markets, he's not only a trading maven but also a pioneer in innovative digital solutions. Beyond charts and code, Sauravsingh is a passionate mentor, guiding many towards financial and technological success. In his downtime, he's often found exploring new places or immersed in a compelling read.

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