POST MARKET REPORT ON 18th OCTOBER 2024

On October 18, 2024, Indian markets saw a volatile trading session, with a strong recovery in the latter half of the day after a negative start.

Sensex: It closed lower by 218.14 points (0.27%), settling at 81,224.75. Earlier in the session, the index faced significant pressure but managed to recover most of its losses by the end.

Nifty 50: The broader index also ended in the red, falling by 104.20 points (0.42%) to close at 24,854.05. Despite a tough first half, sectors like banking and metals led a recovery.

Sector Performance:

Gainers: The recovery was led by metal and financial stocks, with a notable rebound in banking shares.
Losers: The IT and FMCG sectors underperformed, with losses dragging the indices down.
Midcap: The Nifty Midcap 100 closed marginally higher as some mid-sized companies attracted buying interest.
Smallcap: The BSE Smallcap index ended in the red, reflecting more weakness in smaller companies.

This recovery came despite global market uncertainty, with investors cautiously optimistic due to selective sectoral strength

Here are the key stocks and sectors that were in the news today:

Manappuram Finance: The stock declined sharply by 13.50% to Rs. 153.45 after the Reserve Bank of India (RBI) instructed Asirvad Micro Finance, a subsidiary of the company, to halt sanctioning and disbursement of loans, effective October 21, 2024. This regulatory action led to significant selling pressure on the stock.
Prestige Estates: The stock dropped by 1.45% to Rs. 1,767.90 after the company reported a 43% year-on-year fall in Q2 sales bookings, down to Rs 4,022.6 crore for Q2 FY25. The decline in sales weighed on the stock price, reflecting concerns about growth.
Jindal Stainless: The stock was down by 2.46% to Rs. 742.80 following a 21% YoY decline in net profit, reporting Rs. 611.31 crore for Q2 FY25. The drop in profitability was attributed to weaker market demand and input cost pressures.
Wipro: On the positive side, Wipro saw its stock price rise by 3.76% to Rs. 548.70 after the company posted a 21.3% YoY increase in net profit to Rs. 3,201 crore for Q2 FY25. Strong earnings growth and positive sentiment in the IT sector helped lift the stock.
Mahanagar Gas: The stock dipped by 10.09% to Rs. 1,582.95 due to concerns over a 20% cut in CNG transport allocation, which impacted market confidence. The stock faced heavy selling pressure in response to the reduced gas supply.

These stocks were influenced by significant regulatory actions, earnings results, and sector-specific developments, reflecting the varied performance across the market.

Global Market Signals – October 18, 2024

Asian Markets: Asian stocks traded cautiously due to mixed data from China. The economic numbers from China, including growth figures, did not provide a clear direction, leading to uncertainty across the region. Investors were also digesting potential signs of recovery in China, while still being concerned about its real estate and export challenges. This hesitancy kept Asian indices largely flat.
US Dollar: The dollar remained firm as the market continued to anticipate that the Federal Reserve might maintain higher interest rates for an extended period. The hawkish tone from the Fed, amid persistent inflationary concerns, supported the dollar, contributing to weaker sentiment in equity markets.
European Markets: European stocks rose after the European Central Bank (ECB) announced an unexpected rate cut, which spurred optimism in equity markets across the continent. The rate cut was seen as a move to support growth, and investors welcomed the dovish policy shift.

These global signals reflect a complex mix of economic data and central bank actions shaping investor sentiment worldwide.

Here are today’s major headlines:

JSW Energy has signed Power Purchase Agreements (PPAs) for a 1,200 MW solar-wind hybrid capacity with the Maharashtra State Electricity Distribution Company Limited (MSEDCL). This development is part of JSW Energy’s commitment to increasing its renewable energy portfolio, focusing on cleaner energy sources.
Krishna Institute of Medical Sciences (KIMS) has signed a Memorandum of Understanding (MoU) with Wipro GE Healthcare, for a partnership valued at up to Rs. 700 crore. The MoU will aim at enhancing healthcare services through cutting-edge medical technologies.
Aether Industries reported a decline in its Q2 net profit by 4.4% year-on-year (YoY) to Rs. 35 crore, reflecting challenges in maintaining profitability during the quarter.
Hindustan Zinc posted strong Q2 results, with a 35% YoY rise in net profit, amounting to Rs. 2,327 crore. This surge was driven by improved operational efficiencies and higher metal prices.