Indian Stock Market Surges Amid US Election Impact, Strong IPO Interest, and Mixed Earnings Reports

The Indian stock market witnessed a notable surge on the back of multiple catalysts, including positive sentiment from the US presidential election results, Swiggy's high-profile IPO debut, and sectoral performances in IT, FMCG, and small to midcap indices. Benchmark indices Nifty 50 and BSE Sensex closed at 24,484.05 (+1.1%) and 80,378.13 (+1.1%) respectively, highlighting the investor optimism driving market breadth upwards. Among the 2,289 stocks traded, 1,826 ended in the green, while 443 declined, reflecting a broad-based buying interest.

Positive Market Sentiment Driven by US Election Results

The US election outcome has spurred positive sentiment among Indian investors. Key indices like Nifty 50 surged by 270.8 points to close at 24,484.05, while Sensex recorded a significant gain of 901.5 points to reach 80,378.13. The Nifty VIX also saw a decline of 7.8%, settling around 14.9 points, which signals reduced volatility expectations. Reduced volatility can often indicate a stable environment for equities, fostering investor confidence in the near-term market outlook.

Swiggy IPO and IPO Market Updates

Swiggy's IPO launch marked another high-profile entry in the Indian market, raising Rs 11,327.4 crore. The initial subscription stood at 0.1x for the available 16 crore shares, with retail investors bidding for 0.5x of their quota of 2.9 crore shares. The cautious beginning is expected to see more activity as the IPO progresses, especially as retail investors continue to show interest in the food delivery sector's growth potential.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Neelam Lines and Garments, Niva Bupa Health, Rosmerta Digital, NTPC Green, Avanse Financial.

Current active IPO is Sagility India Limited, Swiggy and ACME Solar Holdings.

Sectoral Performance: IT, Hardware, Midcap and Smallcap Lead Gains

• IT Sector Gains: Major IT companies, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Wipro, registered gains. The Nifty IT Index also closed in the green, with all constituents trading positively. Demand for digital solutions continues to drive growth in the sector, reflecting investor confidence in India's tech landscape.

• Hardware Technology & Equipment: This sector outperformed, gaining 4.9%, driven by steady demand in technology infrastructure, as per Trendlyne’s sector dashboard. The gains here underscore a sustained interest in tech and hardware solutions across sectors.

• Midcap and Smallcap Indices: Both indices saw a strong performance, with widespread investor interest in smaller companies. Broader market strength is usually seen as a sign of robust investor sentiment.

Earnings Highlights and Corporate Updates

• Trident Ltd. reported an 8.3% YoY drop in Q2FY25 net profit to Rs 83.2 crore, primarily due to increased employee and finance costs. Revenue fell 4.8% YoY to Rs 1,724.3 crore, with declines in the towel and paper & chemicals segments.

• RITES Ltd. saw a 27.8% YoY drop in net profit for Q2FY25 to Rs 73 crore, impacted by rising employee costs. Revenue also declined by 7.7% YoY to Rs 562.1 crore, mainly due to a slowdown in consultancy and turnkey projects.

• Granules India reported a 4.8% YoY decline in net profit to Rs 97.2 crore, beating expectations. Despite lower revenue at Rs 969.9 crore due to reduced sales across various geographies, the company managed to show resilience.

Corporate Highlights

• Welspun Enterprises announced its aim to reach an order book of Rs 17,000-20,000 crore by FY25, with Rs 3,000-4,000 crore in expected orders from the Department of Telecommunications (DoT). The company currently has L1 status on orders worth Rs 1,850 crore.

• Axis Direct reaffirmed its 'Buy' rating on Steel Strips Wheels, setting a target price of Rs 265 per share. The brokerage expects growth driven by increased tractor volumes, alloy wheel demand, and market expansion in the US and Europe.

• Oil India recorded a 4.8x YoY rise in net profit to Rs 2,016.2 crore, while revenue fell by 3.4% YoY due to reduced output in crude oil, natural gas, and refinery products.

Key Economic Indicators and Global Market Influence

RBI’s Inflation Outlook
RBI Governor Shaktikanta Das stated that inflation could rise in October compared to September, although no immediate rate cuts are anticipated. Despite inflation concerns, he noted that economic activity remains robust, with strong performance in the services sector.

India’s Services PMI Rises
The services PMI rose to 58.5 in October from 57.7 in September, maintaining a 39-month trend of expansion. This boost reflects increased demand and output, signaling continued economic growth momentum.

Industry-Specific Insights

• Automotive Sector: Retail automotive sales jumped 32.1% YoY in October, driven by two-wheeler and car sales, which rose 36.3% and 32.4% respectively. The Federation of Automotive Dealers' Association (FADA) expects further demand in the wedding season.

• Indian Energy Exchange saw a 4% YoY increase in electricity volume to 9,642 million units in October. The Green Market achieved a massive 364% YoY growth.

Additional Stock Market Developments

• Hindustan Zinc: The government announced an offer for sale (OFS) of 5.3 crore shares, or a 1.3% stake, at a floor price of Rs 505. This could increase to 2.5% in case of high demand.

• Waaree Renewable Technologies hit its upper circuit, reporting a 160.2% YoY profit increase to Rs 53.5 crore, with revenue growth of 249.7% YoY.

• Dr Reddy’s Laboratories reported a 16.5% YoY rise in revenue to Rs 80,162 crore, driven by gains in pharmaceutical services and global generics.

Market Outlook and Conclusion

Indian stock markets ended the session on a high note, with gains across indices and sectors driven by strong economic indicators, positive US election sentiment, and notable IPO launches like Swiggy. Broader market strength across sectors such as IT, hardware, and midcaps points to sustained investor interest, while earnings reports presented a mixed picture of resilience and challenges.

In the coming days, the market is expected to keep a close eye on global developments, Swiggy’s IPO subscription trends, and the impact of domestic economic policies as investors weigh opportunities in a steadily growing economic landscape. Investors are advised to stay updated with sectoral shifts and corporate earnings for optimal investment decisions.

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