What happened in the Indian stock market today (7th Oct 2024)?

The Sensex dropped 638.45 points (0.78%) to close at 81,050, while the Nifty slipped by 218.80 points (0.87%), ending at 24,795.80.

The BSE Midcap index declined by 2%, and the Smallcap index fell by over 3%, reflecting the broader pessimism across various stock categories.

The losses in mid and small-cap stocks further eroded investor wealth by Rs 8.99 lakh crore, with the total market capitalisation of BSE-listed companies now down to Rs 452.27 lakh crore from Rs 461.26 lakh crore in the previous session.

Impact on the stock market

All other sectoral indices ended in the red. The biggest losers were public sector banks, healthcare, capital goods, real estate, metals, power, oil & gas, media, and telecom, all of which saw declines ranging between 1% and 3%.

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Top gainers today

Top losers today

Market aftermath: Impact on stocks

Reliance Power crashes despite strong past performance

One of the most notable losers today was Reliance Power, which hit the 5% lower circuit for the third session in a row. Investors rushed to book profits after the stock had surged 60% last month, following the company’s announcement that it had become debt-free. Despite the sharp fall, the stock has rallied an impressive 172% in the last year, outperforming Nifty’s 28% gain during the same period.

The profit booking comes after Reliance Power’s strong performance, partly fueled by its September 18 announcement that it had settled a major corporate guarantee dispute related to its subsidiary, Vidarbha Industries Power Limited. Still, despite the recent gains, investors seem cautious, likely wary of the broader market conditions.

You may also read: Reliance Power Share Surge: Anil Ambani’s Masterstroke

Adani Group’s hydrogen blending project sparks optimism

Adani Group made headlines by launching India’s largest hydrogen blending project in Ahmedabad. This innovative initiative by Adani Total Gas Ltd (a joint venture between Adani Group and TotalEnergies) blends 2.2-2.3% green hydrogen into the natural gas supply for approximately 4,000 domestic and commercial consumers.

This move aims to reduce emissions and is part of a broader goal to achieve net-zero targets. While the market at large has been under pressure, Adani’s efforts to lead the way in clean energy innovation have not gone unnoticed. The company has plans to increase the blend to 5% and eventually to 8%, positioning itself at the forefront of India’s decarbonization efforts.
Also Read: What the Hindenburg report on Adani revealed?

JSW Ventures invests in drone technology

JSW Ventures invested $1.8 million in the drone technology firm Aereo as part of the latter’s Series B funding round. Aereo specializes in using drones and AI-driven data analytics for asset management in sectors like mining and infrastructure.

This move reflects JSW Group’s strategic interest in the growing drone tech space, which has been buoyed by recent government initiatives such as the Drone Regulations of 2021. Aereo has already made significant strides, including mapping over 45,000 villages and covering 50,000 square kilometres for India’s Digital Land Record Modernization Program. This investment is expected to help Aereo expand into international markets and strengthen its offerings.

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Crude Oil

Crude oil futures witnessed a slight decline after a robust weekly rally, largely due to profit-taking in the market. As of this morning, Brent crude oil futures were trading at $77.75, down by 0.38%. On the Multi Commodity Exchange (MCX), October crude oil futures were trading at ₹6,244, down by 1.50% from the previous close of ₹6,339.

Last week saw a sharp increase in crude oil prices, with Brent crude futures gaining over 8% and WTI futures rising by 9.1%. The primary driver was escalating tensions in West Asia, specifically the ongoing conflict between Iran and Israel, which created fears of potential supply disruptions from the oil-rich region.

While those concerns still linger, US President Joe Biden’s move to discourage Israel from attacking Iran’s oil facilities has somewhat alleviated fears of a severe supply crunch. Additionally, OPEC’s spare production capacity and Libya’s recent resumption of crude oil production have helped to stabilise the situation.

Conclusion

October 7th has been a tough day for the Indian stock market, with major indices extending their losing streak to six sessions in a row. Sectors across the board, including public sector banks, healthcare, and real estate, suffered significant losses.

While Reliance Power faced heavy profit-booking after its recent rally, Adani Group continues to innovate with its green hydrogen blending project, and JSW Ventures’ investment in Aereo shows that some companies are still betting on future growth despite market volatility.

As global factors such as Middle East tensions and crude oil prices continue to weigh on the markets, the days ahead may prove to be just as volatile. However, India’s push towards clean energy and innovative technologies provides a glimmer of hope amid the turbulence. Investors would do well to keep a close eye on both global and domestic developments in the coming weeks.

For more stock market insights, check out the StockGro blog.