The Sensex closed 494.75 points down, slipping by 0.61% to end the day at 81,006.61. Meanwhile, the NSE Nifty50 wasn’t spared either, finishing 221.45 points lower, or 0.89%, at 24,749.85.
Midcap and smallcap stocks were hit particularly hard today. The BSE Midcap index plunged 1.65%, while the BSE Smallcap index declined by 1.42%. This indicates that market weakness was spread across the board, not sparing even smaller companies.
Impact on the stock market
Sectoral indices were painted red across the board, with Nifty IT being the sole exception, climbing by 1.19%. This surge in IT stocks provided some relief, but it wasn’t enough to offset losses in other sectors.
The worst-hit sectors today included Nifty Realty, which declined by 3.76%, followed by Nifty Auto, down 3.54%. Nifty Consumer Durables saw a drop of 2.20%, while Nifty Media was also in the red, declining by 2.18%.
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| Sector/Index | Performance |
| IT & BPM sector | 1.19% |
| Healthcare sector | -1.03% |
| Oil & Gas sector | -1.26% |
| Real estate sector | -3.76% |
| PSU Bank in India | -0.50% |
Top gainers today
| Company | Price | Change % |
| Infosys Share Price | 1,968.10 | 2.50 |
| Tech Mahindra Share Price | 1,699.00 | 2.33 |
| Power Grid Corp Share Price | 331.15 | 1.21 |
| Larsen Share Price | 3,570.30 | 1.07 |
| SBI Share Price | 811.05 | 0.70 |
Top losers today
| Bajaj Auto Share Price | 10,119.45 | -12.89 |
| Shriram Finance Share Price | 3,258.60 | -3.89 |
| Nestle Share Price | 2,378.70 | -3.39 |
| M&M Share Price | 2,964.60 | -3.37 |
| Hero Motocorp Share Price | 5,217.45 | -3.35 |
Market aftermath: Impact on stocks
Axis Bank drops ahead of Q2 results
One of the major stocks making headlines today was Axis Bank, which saw its share price decline by 1.60% during morning trade. Investors were cautious ahead of the bank’s Q2 FY2025 earnings report, which is expected to reveal an 8-9% year-on-year rise in net profit.
While this sounds like good news, concerns over a potential 29% increase in slippages (bad loans) may have weighed on investor sentiment. Slippages are projected to rise on a year-on-year basis but fall 12% quarter-on-quarter. The bank’s Net Interest Income (NII) is expected to increase by 10% YoY, driven by healthy lending operations.
Axis Bank shares opened at ₹1,152.95 and slipped to ₹1,134. By midday, the stock was trading at ₹1,135.35, down 1.5%. This drop has contributed to the bank’s 4% decline for the month of October, snapping a four-month winning streak.
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Tata Communications sees a sharp fall after weak earnings
It wasn’t a great day for Tata Communications either, with the stock plummeting 5% after the company posted disappointing Q2 FY2024 results.
The company reported a 31.73% decline in its net profit, which came in at ₹227.27 crore, down from ₹332.93 crore in the previous quarter. While revenue increased slightly by 2.4% to ₹5,781.47 crore, higher expenses seem to have eaten into the company’s profitability.
Investors reacted negatively to the significant drop in earnings, and the stock reflected this with its sharp decline, contributing to the broader sell-off in the market today.
Infosys shines ahead of Q2 results
In contrast to the broader market downturn, Infosys provided a bright spot, with its shares jumping by 2% ahead of its Q2 results announcement. The stock opened at ₹1,935.20 and quickly touched an intraday high of ₹1,958.35.
Market analysts expect Infosys to post strong revenue growth, driven by large deal ramp-ups and improved performance in the BFSI (Banking, Financial Services, and Insurance) segment. Some experts are even anticipating that Infosys may revise its revenue growth guidance upward for the rest of FY2024.
With a near-term target price of ₹2,050 per share, investors were bullish, and this positive sentiment helped the stock buck the market trend today.
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Crude oil prices rise amid inventory decline
Beyond the stock market, crude oil futures saw an uptick as the American Petroleum Institute reported a 1.5 million barrel decline in US crude inventories for the week. This came as a surprise to the market, which had expected an increase in inventories.
Brent oil futures rose by 0.20% to $74.37, while WTI (West Texas Intermediate) crude climbed by 0.28% to $70.59. In India, October crude oil futures traded at ₹5,933 per barrel, up 0.17% on the Multi Commodity Exchange (MCX).
The global oil market also continues to keep a close watch on geopolitical tensions in the Middle East. Any escalation could disrupt supply chains and drive prices higher, potentially impacting oil-importing nations like India.
Conclusion
Today’s decline in the Indian stock market highlighted the cautious sentiment among investors. With the Sensex falling nearly 495 points and the Nifty shedding 221 points, it’s clear that concerns over corporate earnings, rising slippages in the banking sector, and weak midcap and smallcap performances are weighing on the market.
While stocks like Infosys managed to buck the trend, others such as Axis Bank and Tata Communications faced notable declines. Investors will be keeping a close eye on Q2 earnings reports in the coming days to see if the market can regain its momentum.
As always, market sentiment can shift rapidly. Stay updated and informed to make the best investment decisions in these turbulent times.
For more stock market insights, check out the StockGro blog.
