This week, India’s stock markets were marked by volatility, with SENSEX and NIFTY closing slightly lower amid continuous selling by foreign institutional investors (FIIs) and concerns over premium valuations in Indian equities. This came alongside global factors, including key events like the US presidential election and the US Federal Reserve’s policy meeting.
Key Highlights
- Indices Performance:
- NIFTY lost 156 points, while SENSEX dropped 240 points over the week, primarily due to concerns about high valuations and potential value in other Asian markets.
- Weaker-than-expected quarterly results from key players also weighed on market sentiment.
- Market Volatility:
- Markets initially declined over 1% on Monday after Diwali, influenced by weak Q2 earnings and selling pressure from FIIs.
- However, they rebounded on Tuesday as domestic investors bought into banking and metal stocks, bringing SENSEX up by 694 points and NIFTY by 200 points.
- IT Shares Rally:
- IT stocks outperformed, driven by Donald Trump’s lead in the US election, which lifted sentiments for IT and pharma shares. TCS, Tech Mahindra, Coforge, and HCL Tech all saw gains over 4% for the week.
- Biggest Losers:
- Trent, Asian Paints, Coal India, Grasim Industries, and Hero MotoCorp were among the major decliners. Real estate, media, oil & gas, and FMCG sectors under NIFTY were also impacted.
Notable Events
- Waaree Energies’ IPO Success: The solar panel manufacturer’s stock price more than doubled since its listing. Waaree’s shares debuted at ₹2,500 on October 28, closing at ₹2,338.9 on listing day, and continued to rally for seven straight days. By the end of this week, the stock settled at ₹3,110 after some profit-booking.
- Elcid Investments Hits New High: Elcid Investments, India’s costliest stock, crossed ₹3 lakh per share, reaching an all-time high of ₹3,32,399.95 on the BSE. This followed a special re-listing which allowed a significant price discovery.
The Week Ahead
In the coming week, market participants will focus on key economic indicators, including the Index of Industrial Production (IIP) and inflation data, along with the final stretch of the Q2 earnings season. Investor sentiment may also be affected by further movements from FIIs and policy directions anticipated from the US following Donald Trump’s re-election.
Q2 Results –
KIMS Q2 FY25 Results: 19.4% YoY growth in revenue to ₹782 crore, profit rises 16.7% to ₹121 crore
Asian Paints Q2 FY25 Results: Revenue down 5.3% to Rs 8,027.54 crore, Net Profit down 43.7% YoY
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