The Indian stock market ended on a high note on October 14, as bulls took control of the trading session after a few days of rangebound activity. Both the Nifty and Sensex surged, supported by a broad-based rally in Information Technology (IT), realty, and banking stocks. The day saw Nifty closing above 25,100, while the Sensex jumped by 592 points, reinforcing investor confidence after a subdued start to the week.

The Sensex closed at 81,973.05, up by 591.69 points or 0.73%, while the Nifty settled at 25,128, registering a gain of 163.70 points or 0.66%. These gains were driven largely by positive global cues and buying activity across multiple sectors, with the exception of metal and media stocks, which underperformed.

Wipro, Tech Mahindra, HDFC Life, L&T, and HDFC Bank emerged as the top gainers on the Nifty, reflecting strong investor interest in IT and banking stocks. Wipro and Tech Mahindra saw robust buying, pushing the IT sector index up by over 1%, buoyed by strong earnings expectations and positive sectoral trends. L&T and HDFC Bank further fueled market optimism with their steady gains, contributing significantly to the upward momentum.

On the other hand, stocks such as ONGC, Maruti Suzuki, Tata Steel, Bajaj Finance, and Adani Enterprises were among the notable losers. ONGC and Tata Steel dragged the metal sector, which was one of the few segments to close in the red, as commodity prices softened globally. Despite the general market buoyancy, the media sector also remained weak, failing to capitalize on the broader market trend.

Throughout the day, buying was witnessed across the board, with most sectoral indices ending in the green. Except for metal and media, the Information Technology, Banking, and Realty indices posted strong gains, with each sector rising by 1%. Investors seemed particularly upbeat about the IT sector, likely due to favorable earnings guidance from some of the largest players, including Wipro and Tech Mahindra.

Realty stocks also saw considerable buying interest. The sector has been on an upswing amid expectations of a recovery in real estate demand, which has been strengthened by recent government initiatives to boost housing and infrastructure development. With urbanization and infrastructure spending on the rise, realty stocks have shown resilience in recent sessions, supported by low interest rates and increased housing demand.

The banking sector was another major contributor to the market’s rally, with heavyweights like HDFC Bank and State Bank of India (SBI) leading the charge. Improved economic indicators, lower non-performing asset (NPA) ratios, and robust credit growth have fueled confidence in the banking sector, which has been a consistent performer in recent quarters. The steady improvement in loan growth, alongside recovery in asset quality, has encouraged long-term investors to focus on this sector.

Additionally, the BSE Midcap index closed with gains of 0.3%, while the small-cap index ended flat, indicating selective buying in mid-tier stocks. Despite some volatility in smaller stocks, midcap companies continued to perform well, particularly in the infrastructure, finance, and energy segments, which have shown strong earnings resilience.

Global factors also played a crucial role in driving market sentiment. Positive global cues—including stabilization in crude oil prices and signs of a potential interest rate cut in major global economies—encouraged foreign investors to remain net buyers of Indian equities. In addition, ongoing optimism about India’s economic recovery, coupled with sustained foreign direct investment (FDI) inflows, has kept investor spirits high.

The metal sector, on the other hand, saw weakness as global commodity prices fell, putting pressure on companies like Tata Steel. As one of the major underperformers of the day, the metal index remained in negative territory, unable to capitalize on the gains seen in other sectors. The softening demand for metals in international markets, along with concerns about a global economic slowdown, weighed on the sector.

While the broader market saw gains, the media sector also lagged behind, closing in the red. Companies in this sector faced headwinds from subdued advertising revenues and rising content costs, which have been ongoing challenges for media firms. Investors opted to focus on growth sectors like IT and banking, leaving media stocks to underperform.

Looking ahead, market participants are keenly watching global events and domestic earnings reports for further cues. With the festive season approaching, investor sentiment is expected to remain positive, buoyed by a potential surge in consumer demand and higher corporate earnings in the coming quarters. The current market trajectory suggests that IT, realty, and banking stocks will continue to be the frontrunners, as investors flock to sectors showing consistent growth.

Furthermore, the market will keep an eye on the upcoming earnings results from top-tier companies such as Wipro, HDFC Bank, and Tech Mahindra, as these will provide insights into their financial health and future growth prospects. Investors are also hopeful that the global economic environment will remain supportive, with key economic data and policy decisions expected to influence market movements in the near future.

Stocks in News:

Alok Industries has faced a tough quarter, with its net loss widening by 49.9% YoY to Rs 262.1 crore in Q2FY25. The company attributed this widening loss to higher finance costs, which have taken a toll on profitability. Additionally, revenue decreased significantly by 35% YoY to Rs 898.8 crore during the quarter, indicating operational challenges. Alok Industries has also appeared in a screener of stocks with deteriorating book value per share, reflecting its struggles over the past two years.

While Alok Industries is grappling with financial difficulties, Hindustan Construction Co is seeing upward momentum in its stock price. The company has received a Letter of Acceptance (LoA) worth Rs 1,031.6 crore from the Maharashtra State Road Development Corporation. This project involves building a two-lane bridge over Agardanda Creek, connecting Tokekhar and Turumbadi in Raigad District as part of the Revas-Reddi Coastal Highway. Such infrastructure projects are not only crucial for regional connectivity but also significantly boost the company’s order book and financial outlook.

Similarly, Vascon Engineers is surging after securing a Letter of Acceptance (LoA) worth Rs 57.2 crore from the Mumbai Metro Rail Corporation. This project involves building a commercial structure at Kalbadevi on land parcels in the Bhuleshwar Division. It’s designed to rehabilitate people affected by the Metro Line 2/3 in Kalbadevi Girgaon, a critical urban project.

On a different note, Hathway Cable & Datacom has posted a strong performance, with its net profit growing 28.6% YoY to Rs 25.8 crore in Q2FY25. The company’s revenue also increased by 6% YoY to Rs 512.7 crore, driven by improvements in its cable television and securities trading segments. Hathway's strong financial performance has placed it in a screener of stocks with increasing revenue for the past two quarters, signaling consistent growth.

Eraaya Lifespaces is another stock to watch, as its board of directors has scheduled a meeting to consider a proposal for a stock split. A stock split is often seen as a positive move by investors, as it increases liquidity and makes shares more accessible to retail investors.

Infrastructure player PNC Infratech is also gaining traction after securing an order worth Rs 2,039.6 crore from the City & Industrial Development Corporation of Maharashtra (CIDCO). This contract involves developing over 20-meter-wide roads, major and minor structures, and electrical works, adding a significant project to the company’s portfolio.

In the energy sector, Oil & Natural Gas Corporation (ONGC) is planning to set up mini-LNG plants to transport natural gas from wells in areas without pipelines. These plants are expected to be set up in Andhra Pradesh, Jharkhand, and Gujarat, enabling ONGC to optimize its gas supply network in regions lacking infrastructure.

Additionally, Adani Energy Solutions has entered into an agreement with the Kenya Electricity Transmission Co (Ketraco) to develop, finance, and manage transmission infrastructure in Kenya. This project, estimated to cost $736 million, will involve constructing transmission lines and substations, further enhancing Adani’s international presence in the energy sector.

Meanwhile, Sudarshan Chemical Industries is preparing for a potential fund-raising effort. The company's board of directors has scheduled a meeting to discuss raising funds through various means, including equity shares, preferential issues, or qualified institutional placements (QIP). The outcome of this meeting could have a significant impact on the company’s stock.

In the real estate sector, Valor Estate has secured a contract from the Municipal Corporation of Greater Mumbai (MCGM) to construct 13,374 affordable housing units under the Project-Affected Persons (PAP) Scheme. This project is set to be completed within 60 months, adding to Valor’s growing portfolio of large-scale housing projects.

On the financial side, mutual funds have significantly increased their stake in One97 Communications (Paytm) by 15% in Q2FY25, up from 6.8% in Q1FY25. This increase in mutual fund holdings reflects growing confidence in Paytm’s business model, especially after the company delivered a 70% return.

In technology, KR Choksey retains its ‘Accumulate’ rating on Tata Consultancy Services (TCS) with a target price of Rs 4,587 per share, projecting an 11.1% upside. The brokerage firm expects TCS's revenue to grow, driven by increased discretionary spending and interest rate cuts, with an estimated CAGR of 8.5% from FY25 to FY27.

Gensol Engineering has also seen a surge after securing an AED 81.6 million (Rs 186 crore) order from a leading UAE sustainable development company. The project involves designing and constructing rooftop solar photovoltaic (PV) systems in Dubai, signaling Gensol’s growing presence in the clean energy sector.

In the energy space, JSW Energy has entered into an energy storage facility agreement (ESFA) with the Maharashtra State Electricity Distribution Company (MSEDCL). This agreement involves procuring 1,500 MW or 12,000 MWh of pumped hydro energy storage, with JSW supplying energy storage capacity for 40 years.

Lastly, Premier Energies is seeing a rise after its subsidiaries secured orders worth Rs 765 crore to supply solar PV cells and modules to various customers. This strengthens the company’s position in the solar energy market, further driving its growth.

The current active IPO is Pranik Logistics Limited.

For more information on environmental policies and ongoing developments, please visit our Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.