The BSE Sensex ended nearly flat, losing 73 points (0.1%) to close at 81,151, while the NSE Nifty50 slipped 73 points (0.3%), closing below the key 24,800 mark at 24,781.
Volatility was the theme of the day, with the India VIX, often called the “fear gauge,” spiking by 6% to 13.9. This surge reflected heightened market uncertainty driven by factors such as weaker-than-expected Q2 FY25 earnings, continuous Foreign Institutional Investor (FII) selling, and geopolitical tensions.
In broader markets, the BSE Midcap and Smallcap indices took a bigger hit, falling by 1.5% each, reflecting deeper cuts in smaller companies and mid-tier firms. Today’s session had 1,093 advancing stocks, while 2,766 declined, showcasing the overall bearish mood.
Impact on the stock market
Most sectoral indices ended in the red, with the exception of Nifty Auto, which saw some gains due to a strong performance from Bajaj Auto and M&M. However, other heavyweight sectors dragged the market lower, with Nifty IT declining 1.5%, Nifty FMCG falling 1.2%, and Nifty Metal dropping 2.0%.
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| Sector/Index | Performance |
| IT & BPM sector | -1.29% |
| Healthcare sector | -0.83% |
| Oil & Gas sector | -1.24% |
| Real estate sector | -1.40% |
| PSU Bank in India | -1.07% |
Top gainers today
| Company | Price | Change % |
| Bajaj Auto Share Price | 10,500.50 | 4.34 |
| HDFC Bank Share Price | 1,728.70 | 2.79 |
| Asian Paints Share Price | 3,049.20 | 1.91 |
| M&M Share Price | 2,998.20 | 1.15 |
| Eicher Motors Share Price | 4,810.45 | 0.94 |
Top losers today
| TATA Cons. Prod Share Price | 1,017.05 | -6.97 |
| Kotak Mahindra Share Price | 1,789.20 | -4.37 |
| Bajaj Finserv Share Price | 1,758.40 | -3.38 |
| BPCL Share Price | 331.65 | -3.17 |
| IndusInd Bank Share Price | 1,308.25 | -2.89 |
Market aftermath: Impact on stocks
Bajaj Finance dips ahead of Q2 results
Bajaj Finance was a key stock under the spotlight today, as investors braced for its Q2 FY25 results scheduled for October 22nd. Despite expectations of strong earnings, including an estimated 33% jump in net profit, the stock slipped 1.76% to ₹6,776.00 by the afternoon session.
Analysts predict Bajaj Finance to post a 24% rise in net interest income (NII) and an Asset Under Management (AUM) growth of around 30% YoY. However, concerns over rising credit costs and margin compression, with net interest margins (NIM) expected to shrink by 50 basis points (bps), weighed on the stock today.
Investors will also be keen to hear management commentary on the company’s future growth trajectory, particularly after its stake sale in Bajaj Housing Finance via IPO, which could positively impact overall earnings.
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UltraTech Cement misses earnings expectations
UltraTech Cement reported disappointing Q2 FY25 results, with net profit falling a significant 36% YoY to ₹820 crore, well below analysts’ expectations of ₹1,062 crore. Revenue from operations was also down 2.3% YoY, coming in at ₹15,635 crore, marginally better than estimates but not enough to offset the negative sentiment.
The drop in earnings was largely attributed to weak demand during the monsoon season and project delays, which hampered price realisations. The company’s grey cement sales volumes only rose 3% YoY, but a sharper 15% drop was recorded compared to the previous quarter due to issues like labour shortages and the extreme summer heat.
As a result, UltraTech Cement’s stock struggled in today’s session, weighed down by concerns about future profitability in an environment of sluggish demand and infrastructure delays.
MCX surges to a new high
While most of the market was under pressure, MCX (Multi Commodity Exchange of India) stood out with a stellar performance, hitting a new peak of ₹6,679, up 2% in intra-day trade. The company posted robust Q2 FY25 earnings, with net profit surging 39% QoQ to ₹153.62 crore and revenue up 73% YoY at ₹285.6 crore.
The continued traction in option volume growth, which saw a 125% YoY increase, coupled with improved operational efficiency, has driven strong results for the exchange. MCX’s shares have skyrocketed over 129% from their June 2024 lows and an astonishing 406% over the past 17 months.
Analysts believe the company’s growth trajectory remains positive, bolstered by increased participation in commodity derivatives trading, sectoral expansions, and strategic product launches.
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Crude oil prices
Beyond equities, crude oil futures also caught attention today as prices moved higher on news of China’s decision to cut key lending rates in an attempt to boost its slowing economy.
- December Brent crude futures rose by 0.53% to $73.45, while December WTI (West Texas Intermediate) climbed 0.66% to $69.14.
- In India, October crude oil futures were trading slightly lower at ₹5,850 on the Multi Commodity Exchange (MCX).
China’s move to lower interest rates reflects an effort to stimulate domestic demand, and given China’s significant consumption of crude oil, this could have a lasting impact on global oil prices. However, uncertainty surrounding geopolitical tensions in the Middle East also kept market participants on edge.
Reports of explosions in Beirut, Lebanon, heightened concerns about potential supply chain disruptions in the region. As always, any significant escalation in geopolitical risks could push oil prices higher, affecting the broader commodity markets.
Conclusion: Volatility rules the day
The Indian stock market’s performance on October 21st, 2024, was marked by sharp volatility, with the Sensex and Nifty struggling to maintain gains as selling pressure intensified. Weak Q2 earnings from companies like UltraTech Cement and concerns over rising credit costs for Bajaj Finance weighed heavily on investor sentiment.
Meanwhile, MCX shone with impressive earnings, and the crude oil market responded to China’s economic measures, adding another layer of complexity to the day’s trading session.
As the earnings season progresses, market participants will continue to keep a close eye on company results, geopolitical developments, and global economic indicators to gauge the direction of the market in the coming days.
For more stock market insights, check out the StockGro blog.
