The Indian stock market continued its downward slide on November 8, 2024, marking a second consecutive day of losses. Despite positive cues from global markets, including a 25-basis point rate cut by the US Federal Reserve, domestic investors maintained a cautious outlook, triggered by weak Q2 earnings and an ongoing flight of Foreign Institutional Investors (FIIs).

The Nifty 50 closed at 24,148 points, down by 0.21%, while the Sensex finished the session 55.70 points lower at 79,486, both indices also marked a weekly decline of 0.64% and 0.30%, respectively. 

Investor sentiment was notably subdued despite a rate cut by the US Federal Reserve. The broader market faced severe selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling by 1.42% and 1.76%, respectively. Sectoral indices also reflected the overall negative mood, with the Nifty Realty index dropping nearly 3% and the Nifty Media index down by 2.09%. Other sectors such as PSU Banks, Oil & Gas, Energy, and Metal also ended with losses exceeding 1%.

Despite this, the IT sector emerged as a bright spot, with the Nifty IT index gaining 0.71%. This positive movement was attributed to renewed investor interest following the US Fed’s rate cut, while the Nifty FMCG index managed a slight recovery, closing 0.31% higher after a sharp sell-off in the previous session. The Nifty Pharma and Nifty Auto indices remained largely flat.

On the individual stock front, Mahindra & Mahindra was the standout performer, gaining 2.9% after reporting strong Q2 earnings. Other stocks such as Titan Company, Tech Mahindra, Infosys, Nestle India, and HUL also posted gains of over 1%.

However, the day's biggest loser was Trent, which fell 3.2% following weak Q2 results. Over the past two days, the stock has shed 9.5%, bringing its total correction since mid-October to a staggering 24.52%. Other stocks such as Coal India, Asian Paints, Tata Steel, and several others ended the session with losses of over 1%.

Market is undergoing a phase of consolidation, with investors staying cautious due to disappointing earnings and ongoing FII outflows. Despite the US Fed's rate cut, which is designed to stimulate the economy, concerns over rising inflation in India and the strengthening US dollar led to a less optimistic view from local investors.

Looking ahead, Data suggested that the 24,000 level could provide strong support for the Nifty. If the index manages to stay above this threshold, there could be a potential recovery towards 24,500. However, a break below 24,000 could signal further market weakness.

Key Stock Movements:

1. Vedanta: Shares of Vedanta surged after it reported a net profit of Rs 4,352 crore in Q2FY25, reversing the loss of Rs 1,783 crore in the same period last year. Despite a 1.6% YoY decline in revenue to Rs 38,934 crore due to weaker oil & gas and iron ore prices, the company benefited from a massive 77.7% YoY reduction in taxes. It appears in the list of stocks showing a strong recovery from their 52-week lows.

2. Reliance Power: Shares of Reliance Power plummeted over 5% after the company was banned from participating in future tenders for three years by the Solar Energy Corporation of India (SECI). The ban follows a discovery that the company submitted fake bank guarantees for its solar projects. This news caused a sharp drop in the stock price, hitting the 5% lower circuit.

3. Zinka Logistics Solution: The company set its IPO price band at Rs 259-273 per share, which will open on November 13. The offering includes a fresh issue worth Rs 550 crore and an offer for sale of up to 2.1 crore shares. The stock generated significant investor interest as it readies for its market debut.

4. Ashok Leyland: Ashok Leyland’s shares gained 34.1% YoY in Q2FY25, driven by a reduction in raw material costs, though revenue declined by 1.8% YoY due to a slowdown in the commercial vehicle segment. Despite the drop in sales, its profit growth helped boost investor sentiment.

5. Swiggy: Swiggy’s IPO continued to attract significant demand, with its offering oversubscribed by 2.4X by the third day of bidding. The retail investor segment saw its quota getting fully subscribed, reflecting strong interest in the company’s public debut.

6. MRF: Shares of MRF fell after the company reported a 19.8% YoY decline in Q2FY25 profit due to higher raw material and employee costs. Despite the decline in profit, revenue grew by 11.2% YoY, which failed to offset the market’s concerns, and the stock showed weakness.

7. TBO Tek: Jefferies initiated a ‘Buy’ rating on TBO Tek, with a target price of Rs 2,000. The company has seen strong growth in its gross transaction value (GTV), driven by air and hotel segments, and is expected to continue growing at a 20% CAGR over the next few years.

8. Aditya Birla Fashion and Retail: Aditya Birla Fashion and Retail reported a net loss of Rs 185.9 crore in Q2FY25, though it performed better than analyst estimates. Revenue increased by 13% YoY, and the stock caught attention as mutual funds raised their stake in the company.

9. Cummins India: Shares of Cummins India rose after reporting a 36.5% YoY increase in Q2FY25 net profit. Revenue grew by 30% YoY, driven by strong performance in the engines and lubricants segments. The company showed strong financial performance, leading to positive investor sentiment.

10. Sanofi India: Sanofi India faced a significant fall after its net profit plunged by 45.9% YoY in Q2FY25 due to higher raw material costs and lower sales. Despite revenue growing by 5% YoY, the sharp profit drop weighed on investor sentiment, and the stock showed weakness.

11. RHI Magnesita India: The company expects to see volume recovery in H2FY25, with margins hovering around 14-15%. The stock saw positive movement as CEO Parmod Sagar indicated improving volumes, despite the uncertainty surrounding potential stake sales.

12. Emami: Shares of Emami fell after the company missed revenue estimates, despite a 3% YoY growth to Rs 890.6 crore in Q2FY25. The company’s net profit grew by 19.1%, driven by inventory destocking and reduced raw material costs. However, the market reaction was negative, with RSI showing weakness.

13. Ircon International: Ircon’s stock declined as its net profit fell by 17.9% YoY to Rs 206 crore due to higher finance costs. Revenue also decreased by 19.1% YoY, primarily due to reduced operations in its domestic and international businesses.

14. ITI: ITI’s stock surged after it emerged as the lowest bidder for a Rs 3,022 crore BharatNet Phase-3 project, which will span across Himachal Pradesh, West Bengal, and the Andaman & Nicobar Islands. The positive news boosted the stock, leading to a sharp rise.

15. Indian Hotels: Indian Hotels continued its strong performance, surging to an all-time high after reporting a 3.3x YoY increase in net profit for Q2FY25. The company benefited from the sale of its stake in Taj SATS Air Catering, and its revenue grew by 27.6%, driven by improvements in hoteliering and catering.

16. Motilal Oswal on Trent: Motilal Oswal maintained its 'Buy' rating on Trent, with a target price of Rs 8,200, citing strong growth potential driven by Zudio’s expansion and improved store productivity. Despite a miss on earnings due to store consolidation, the brokerage remained bullish on Trent’s long-term prospects.

17. Brigade Enterprises: Brigade Enterprises announced a joint development agreement for a residential project in Chennai, which will span approximately 1 million square feet. The project has a gross development value of Rs 800 crore, marking a significant step forward for the company.

18. Rail Vikas Nigam: Shares of Rail Vikas Nigam dropped after the company reported a 27.2% YoY decline in net profit for Q2FY25. The fall in profits was attributed to increased operating and finance costs. Revenue also saw a slight reduction by 1.4% YoY.

19. NHPC: NHPC's stock fell after the company posted a 41.2% YoY decline in net profit for Q2FY25. While revenue increased by 9.3% YoY, higher employee benefits and finance costs impacted profitability.

20. Lupin: Lupin’s shares surged after the company reported a strong 74.1% YoY rise in Q2FY25 net profit, driven by lower inventory and finance costs. The company’s revenue grew by 12.5% YoY, boosted by strong performance in the pharmaceutical segment.

Global and Sector Performance:

Asian markets closed lower, with European indices also trading in the red, except for Russia's MOEX & RTSI index. US index futures indicated a positive start. Sectoral performance saw Telecommunications Equipment as the top performer with a 4.3% gain, while most sectors, including IT and Growth sectors, closed higher.

Conclusion:

Despite global cues suggesting a positive start, Indian markets struggled, with heavy selling pressure in broader indices and specific sectors. Investors are keenly monitoring earnings reports, with stocks like Vedanta, Reliance Power, and Zinka Logistics seeing sharp price movements. The market remains in consolidation mode as cautious sentiment prevails.

The Upcoming IPOs in this week and coming weeks are Mangal Compusolution, Onyx Biotec, Rosmerta Digital, NTPC Green, Avanse Financial and Black Buck.

The Current active IPO are  Swiggy, ACME Solar Holdings, Niva Bupa Health and Neelam Lines and Garments.

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.