The Indian stock market experienced a downturn, continuing its trend from the previous session, as the Nifty 50 fell below the 25,000-mark. Weak global cues and a lack of upside triggers contributed to the overall market decline on October 16. After a flat opening, the indices lost momentum and closed in the red, with IT, auto, and FMCG stocks being the biggest laggards on the Nifty 50.

The Sensex fell 318.76 points or 0.39 percent to 81,501.36, while the Nifty dropped 86.00 points or 0.34 percent to 24,971.30.

Top Gainers and Losers

Top Gainers

Rallis India: Shares skyrocketed over 13 percent as investors celebrated the company's robust performance in Q2, with growth in profit, revenue, and profitability.

RailTel Corporation of India: Shares jumped 6.5 percent after securing a ₹79.8 crore order from MHADA to establish and manage a cloud-based data center and disaster recovery site.

HDFC AMC: Shares rose nearly 6 percent following strong Q2 FY25 results, marking the first time its market capitalization exceeded ₹1 lakh crore.

Voltas: Shares climbed 4 percent after Morgan Stanley upgraded the stock to 'overweight,' anticipating a 21 percent earnings CAGR from FY25 to FY27.

South Indian Bank: Shares surged over 6 percent after reporting an 18 percent increase in profit for Q2 FY25.

Top Losers

Zydus Lifesciences: Shares fell nearly 4 percent after a US federal judge ruled in favor of Exelixis Inc. in a patent dispute involving the cancer drug Cabometyx.

Cochin Shipyard: Shares dropped 5 percent as the government launched an offer-for-sale to offload a 5 percent stake in the PSU company at a floor price of ₹1,540 per share.

KEI Industries: Shares tumbled as much as 7 percent after the firm reported a contraction in operating margins, despite growth in the bottom line and top line.

BSE: Shares fell over 5 percent after Jefferies downgraded the stock to 'underperform,' citing unfavorable risk-reward dynamics following a 100% run-up in its price.

Sector Performance

The market witnessed a broad-based decline, with significant laggards in the following sectors:

IT: A major contributor to the losses, with multiple companies in the sector showing weakness.

Auto: Continued pressure from global cues impacted the performance of auto stocks.

FMCG: Showed declines as consumer demand remained uncertain amid inflation concerns.

Conclusion

The Indian stock market faced a setback on October 16, with the Nifty 50 closing below the 25,000-mark amid weak global cues and disappointing sector performances. Rallis India stood out as a major gainer, reflecting investor confidence, while Zydus Lifesciences and other stocks faced pressure from legal and market dynamics. As the market navigates these challenges, attention remains on upcoming earnings and global developments that may provide fresh triggers.

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