On October 21, Indian equity indices concluded the trading session on a weak note, with Nifty closing below 24,800. The market faced headwinds primarily from the IT, FMCG, and metal sectors, leading to declines across various indices. Despite an initial surge driven by HDFC Bank's strong performance, profit-booking quickly ensued, resulting in a drop in the overall market.

Sectoral Performance

Apart from the Nifty Auto sector, which managed to stay afloat, all other sectoral indices ended in the negative territory. This mixed performance highlighted the market's vulnerability to investor sentiment and profit-taking activities.

Major Gainers of the Day

HDFC Bank

HDFC Bank's shares experienced a notable 3 percent increase, buoyed by a positive reception to its September quarter performance. The bank reported strong metrics across the board, despite a slight dip in asset quality. Analysts remain optimistic, maintaining a positive outlook with price targets suggesting a potential 28 percent upside from current levels.

Tejas Network

Tejas Network saw an impressive surge of over 11 percent in its shares, following the announcement of a seven-fold increase in topline growth. This growth was largely driven by the expansion of its 4G business. The management expressed confidence in upcoming opportunities and outlined potential projects they aim to secure. On a quarter-on-quarter basis, net profit soared by 250 percent, while revenue surged by 80 percent compared to the previous quarter.

Oberoi Realty

Oberoi Realty shares advanced by 3 percent after the company reported gross bookings of Rs 1,350 crore from new projects within just three days. The firm also posted a 29 percent increase in consolidated net profit, amounting to Rs 589.44 crore for the second quarter, compared to Rs 456.76 crore in the same period last year.

Major Losers of the Day

Tata Consumer Products

On the downside, shares of Tata Consumer Products fell over 7 percent following a disappointing earnings report for the July-September period. The company's net profit remained stagnant at Rs 359 crore, despite a 13 percent increase in revenue to Rs 4,20 crore.

Kotak Mahindra Bank

Shares of Kotak Mahindra Bank tumbled nearly 5 percent after the release of its September quarter numbers for Q2FY25, which missed market estimates. The bank's profit growth was a modest 5 percent year-on-year (YoY), amounting to Rs 3,344 crore, leading several brokerage firms to adjust their target prices downward.

Indiamart Intermesh

Indiamart Intermesh saw its shares plummet almost 17 percent despite reporting strong second-quarter earnings. Analysts adopted a cautious outlook, noting that while the company added 2,390 paid subscribers, collections growth significantly slowed, dropping to just 5 percent from 14 percent in the same period last year.

PNC Infratech

PNC Infratech shares were locked in a 20 percent lower circuit after the company, along with its subsidiaries, faced disqualification from participating in tender processes by the Ministry of Road Transport & Highways. The company announced in an exchange filing that it would be barred from tender processes for one year, effective October 18, 2024.

JM Financial

JM Financial shares fell over 7 percent, despite the Reserve Bank of India lifting restrictions on its subsidiary, JM Financial Products Ltd, regarding financing against shares and debentures. The RBI had previously imposed a ban on such lending in March, which has now been rescinded.

Conclusion

The Indian equity market on October 21 exhibited a mixed performance, driven by sector-specific movements and individual stock performances. The notable gains in stocks like HDFC Bank and Tejas Network contrasted sharply with the declines seen in firms like Tata Consumer Products, Kotak Mahindra Bank, and Indiamart Intermesh. As investors digest these developments, market dynamics remain sensitive to earnings reports and sectoral trends.

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