In a remarkable turn of events, the Indian benchmark indices made a strong comeback on October 28, ending a five-day losing streak. The rebound was driven primarily by rallies in financial and metal stocks, supported by positive global cues.
Market Performance Overview
The Nifty 50 closed the session with a 0.65% gain, finishing at 24,339 points. During intraday trading, the index approached the 24,500 mark, falling just 8 points short. Meanwhile, the S&P BSE Sensex also saw a substantial increase of 0.6%, ending above the 80,000 level at 80,005 points. The index peaked at 80,539 points during the day.
Both the Nifty Smallcap 100 and Nifty Midcap 100 indices experienced significant rebounds, gaining 1.20% and 0.83%, respectively.
Sectoral Performance
Every major sectoral index ended the trading session in positive territory, with the Nifty PSU Bank Index leading the way, surging 4%—its largest intraday jump in a month. This surge was largely attributed to strong performance from Bank of Baroda, whose September quarter earnings boosted investor sentiment in the banking sector.
The Nifty Metal Index followed closely behind, posting a 2.4% gain. Additionally, indices related to media, realty, and pharma sectors also recorded gains exceeding 1%.
Notable Stocks
Among the Nifty 50 constituents, 35 stocks closed in positive territory. Shriram Finance was the standout performer, gaining 5.4%. Other significant gainers included Adani Enterprises, ICICI Bank, and Wipro, each recording gains of over 2%.
On the downside, Coal India fell 4.2% following disappointing Q2 results, while Bajaj Auto continued its downtrend for a third consecutive session, losing an additional 2% and settling at ₹10,011. This month, the stock has dropped 19%, marking its biggest monthly decline since March 2020.
Other stocks, including Axis Bank, Hero MotoCorp, and Kotak Mahindra Bank, ended the session with losses exceeding 0.5%.
Key Factors Supporting the Market Rebound
No Major Escalation in Geopolitical Tensions: Although there were targeted strikes conducted by Israel against Iran over the weekend, the absence of significant civilian or infrastructure attacks provided relief to financial markets. Experts believe the chances of Iranian retaliation are minimal, alleviating fears of further escalation.
Sharp Drop in Crude Oil Prices: Crude oil prices dropped significantly, with both Brent and WTI crude futures declining by 6% during the session. Ongoing weak economic indicators from top consumer China also impacted sentiment, as recent data indicated a decline in industrial profits despite the government's stimulus efforts.
Short Covering: The Indian stock market is undergoing a short-covering rally after five consecutive days of steep declines. The Nifty 50 had previously fallen 2.58% last week, marking its fourth consecutive week of losses.
Technical Factors: The Nifty 50 made a low at the 24,100 levels on Friday before bouncing back. The formation of a bearish candle with a long wick on the downside indicated strong buying. Today, the index broke its resistance level at 24,400, with analysts predicting a potential extension of gains toward 24,750 if the upward momentum continues.
Seasonal Patterns: Historically, the 44th week of the calendar year has shown positive market performance, with an 80% success rate of closing higher since 2014. Analysts expect the Nifty could attempt a bounce this week based on these historical patterns.
According to Akshay Chinchalkar, Head of Research at Axis Securities, while the trend remains down, any bounce in the Nifty 50 will face resistance in the 24,413 - 24,462 range, with support lying at 24,073. A break below this support could bring the critical 23,779 level into focus.
In today's stock market updates, several companies have reported their earnings for the second quarter of FY25, showcasing a mix of impressive gains and unexpected challenges. Here’s a detailed look at the major players in the market today:
Sun Pharmaceutical Industries has emerged as a strong performer, with its net profit increasing by 28% year-on-year (YoY) to Rs 3,040.2 crore, surpassing forecaster estimates by 5.8%. Additionally, the company recorded a 9% YoY increase in revenue, reaching Rs 13,291.4 crore. This solid performance indicates Sun Pharma's resilience and consistent growth, making it a notable entry on the screener of stocks with increasing profits over the past four quarters.
Bharat Heavy Electricals (BHEL) also reported a positive turnaround, achieving a net profit of Rs 106.2 crore in Q2FY25 compared to a net loss of Rs 63 crore in the same quarter last year. The company’s revenue rose by 26.2% YoY, totaling Rs 6,695.4 crore, driven primarily by its power and industry segments.
Meanwhile, Shakti Pumps has surged to its 5% upper circuit, with revenues skyrocketing 4.2 times to Rs 634.6 crore, propelled by a robust improvement in the domestic market. Its net profit increased by an astonishing 16.6 times YoY, reaching Rs 101.2 crore.
However, not all reports were positive. Ambuja Cements witnessed its revenue remain flat at Rs 7,890.1 crore, although it did exceed forecaster estimates by 10.5%. Nonetheless, the company reported a 42.5% YoY decline in net profit, which fell to Rs 456 crore due to escalating costs related to raw materials, inventory, and employee benefits.
On the other hand, Torrent Pharmaceuticals faced a setback as its Q2FY25 revenue of Rs 2,889 crore fell short of expectations, missing estimates by 2.5% despite an 8.6% YoY rise. Its net profit of Rs 453 crore grew by 17.4% YoY, yet still fell 8% short of predictions.
Inox Wind reported a significant recovery, posting a net profit of Rs 92.9 crore compared to a loss of Rs 24.1 crore in Q2FY24. This rebound was aided by decreased expenses related to finance and operations, with a 93% YoY increase in revenue at Rs 741.7 crore, thanks to higher project execution and order wins.
NBCC (India) is also in the news after securing multiple work orders totaling approximately Rs 1,726 crore from the Government of Goa, including major redevelopment projects.
Another significant player, Macrotech Developers, saw its net profit surge by 109.5% YoY to Rs 422.9 crore, spurred by a tax return of Rs 136.8 crore. The company’s revenue also grew by 53% YoY to Rs 2,684.6 crore, showcasing a robust performance driven by higher collections and pre-sales.
Shriram Finance reported a 17.9% YoY revenue increase to Rs 10,089 crore, supported by higher interest and commission income, while its net profit rose by 20.6% YoY to Rs 2,153.3 crore.
KRN Heat Exchanger and Refrigeration announced that its wholly-owned subsidiary signed a Memorandum of Understanding (MoU) with the Government of Rajasthan to invest Rs 1,000 crore in a new heat exchanger plant.
Bank of Baroda reported a 23.2% YoY growth in net profit to Rs 5,237.9 crore for Q2FY25, with revenues up 10.7% YoY at Rs 35,444.7 crore, driven by improvements across various banking segments.
In contrast, Coal India faced a decline in profits, with a 21.9% YoY drop in net profit to Rs 6,289.1 crore, and revenues fell by 7.4% YoY to Rs 32,177.9 crore, impacted by lower production and offtake of raw coal.
The IPO market also saw activity with Deepak Builders & Engineers debuting at a 1.5% discount to its issue price, while Waaree Energies shares surged to a 66.3% premium, reflecting strong investor interest.
HSBC maintained a 'Buy' rating on Shriram Finance, raising its target price to Rs 3,725, citing robust Q2 performance, strong operational metrics, and no weakness in asset quality.
Titagrah Rail Systems posted a 13% YoY revenue increase to Rs 1,057 crore, aided by improvements in the freight rail segment, with net profit growing by 14.1% YoY to Rs 79.9 crore.
DLF experienced a remarkable 121.8% YoY increase in net profit to Rs 1,381.1 crore, largely thanks to a deferred tax return of Rs 504.7 crore, with revenues climbing 47.7% YoY to Rs 2,180.8 crore.
Finally, Bandhan Bank reported a 30% YoY growth in net profit to Rs 937.4 crore, driven by lower provisions, while its revenue increased by 21.1% YoY to Rs 6,094.5 crore, benefiting from improvements across various banking segments.
Conversely, InterGlobe Aviation faced challenges, posting a net loss of Rs 986.7 crore in Q2FY25, compared to a profit of Rs 188.9 crore in the previous year, largely due to higher operational costs. However, its revenue still grew by 14.6% YoY to Rs 17,759 crore due to increased passenger capacity.
Conclusion
Today’s stock market performance highlights the resilience of Indian indices amid challenging conditions. As financials and metal stocks lead the recovery, investors are optimistic about the future, albeit cautious about potential geopolitical risks and economic indicators. Keeping an eye on upcoming earnings and global developments will be crucial for market participants in the coming days.
The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Swiggy, ACME Solar Holdings.
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