On November 7, 2024, the Indian stock market faced significant losses as optimism from the "Trump trade" rally, which followed the former U.S. president’s win in the 2024 election, fizzled out. This rally, which initially spurred market hopes, couldn’t sustain its momentum through the trading day, resulting in major corrections across both the Nifty 50 and S&P BSE Sensex. The Nifty 50 fell by 1.16%, closing at 24,199 points, while the Sensex shed 1.03%, settling at 79,550 points. Broader market indices also recorded declines, with Nifty Midcap 100 down by 0.49%, and Nifty Smallcap 100 witnessing a drop of 0.84%.

The sell-off was attributed to a range of factors including rising concerns over global trade, particularly the potential for steep tariffs on Chinese goods under Trump's proposed policies. This caused volatility in metal prices, especially affecting stocks in the Nifty Metal sector, which dropped by 2.7%. The fears of tariffs on Chinese goods also raised concerns about their impact on China’s economic recovery, further pressuring market sentiment.

Sectoral Performance:

All 13 sectoral indices ended the day in the red, with the Nifty Metal sector being the hardest hit. Other sectors like Nifty Pharma, Realty, and Auto also faced declines, with losses exceeding 1% each. The only bright spot on the sectoral map was Telecommunications Equipment, which rose by 3.6%, marking it as the best-performing sector of the day.

Key Stock Movers:

• Hindalco Industries witnessed a significant drop of more than 8.5%, as metal stocks faced selling pressure.
• Apollo Hospitals Enterprises bucked the trend with a 6.5% gain, driven by strong earnings and a rise to an all-time high of Rs 7,433.7 per share.
• Caplin Point Laboratories surged to a new all-time high of Rs 2,176.8 per share, following a 13.9% YoY growth in net profit and a 17% revenue increase in Q2FY25.
• Swiggy's IPO also made headlines, with bids for just 0.3X of the available shares on the second day of bidding, reflecting tepid investor sentiment.

Other stocks such as Trent, JK Lakshmi Cement, and Sonata Software struggled, with Trent missing profit estimates despite a strong YoY revenue growth of 39.4%, and Sonata Software reporting a 14% QoQ revenue decline. Conversely, Avalon Technologies surged to a 52-week high, bolstered by a 140.1% increase in its net profit.

Additional Noteworthy Developments:

• Motilal Oswal initiated coverage on LT Foods, giving it a ‘Buy’ rating with a target price of Rs 520, driven by its strong market share and international expansion plans.
• JK Lakshmi Cement reported a net loss of Rs 14 crore in Q2FY25, a sharp contrast to the Rs 92.7 crore profit in Q2FY24.
• Trent faced a sharp drop, down 2%, as its net profit missed estimates despite growing by 46.9% YoY.
• Five stocks, including Voltas and BSE, will be added to the MSCI Global Standard Index, expected to bring significant inflows, with Voltas set to receive $312 million and BSE $259 million.
• Jet Airways' liquidation has been ordered by the Supreme Court, citing the long delay in implementing its resolution plan.
• Aurionpro Solutions secured a contract from Chennai Metro Rail Corp (CMRL) for AFC systems, marking a positive development.
• Gujarat Gas saw a 4.2% YoY growth in net profit, though its revenue fell due to lower sales of CNG and industrial PNG.

Global Influences:

Globally, while European indices traded higher, major Asian indices had a mixed close. US index futures were up, indicating a positive start to the US market session. The global rally, spurred by Trump’s 2024 comeback, provided initial optimism but was dampened by concerns about trade tensions and rising yields. These global factors are expected to influence Indian markets further, especially with volatility surrounding trade and foreign exchange issues.

Conclusion:

The Indian stock market closed in the red on November 7, as global uncertainties and sectoral pressures weighed heavily on investor sentiment. With the US Presidential election results out of the way, market participants are now turning their focus to upcoming monetary policy decisions and potential trade tensions, which could keep volatility high in the near term. The market's breadth also reflected the downtrend, with 1,366 stocks declining compared to just 889 stocks advancing.

Investors will closely monitor global developments, especially the US Federal Reserve’s policy stance and upcoming corporate earnings reports, which could provide further clarity on the direction of markets in the coming weeks.

The Upcoming IPOs in this week and coming weeks are Neelam Lines and Garments, Rosmerta Digital, NTPC Green, Avanse Financial and Black Buck.

The Current active IPO is Sagility India Limited, Swiggy, ACME Solar Holdings and Niva Bupa Health.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.