The BSE Sensex dropped by 55.47 points, or 0.07%, ending the day at 79,486.32, while the NSE Nifty50 slipped 51.15 points, or 0.21%, to close at 24,148.20.
The Nifty Midcap100 and Nifty Smallcap100 faced substantial losses, declining by 1.33% and 1.70%, respectively.
Impact on the stock market
Looking at sectoral indices, the overall performance showed a clear trend, with almost all sectors closing in the red. Here’s how various sectors performed:
- IT, Pharma, and FMCG managed to hold their ground, closing in the green.
- Nifty Realty and Media were the hardest hit, each plunging over 2%.
This sector-wise downturn reflects a cautious sentiment among investors, who are likely responding to a mix of quarterly results, fluctuating commodity prices, and shifts in global market trends
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| Sector/Index | Performance |
| IT & BPM sector | 0.71% |
| Healthcare sector | 0.22% |
| Oil & Gas sector | -1.96% |
| Real estate sector | -2.90% |
| PSU Bank in India | -1.97% |
Top gainers today
| Company | Price | Change % |
| M&M Share Price | 2,974.90 | 2.89 |
| Titan Company Share Price | 3,186.25 | 2.10 |
| Tech Mahindra Share Price | 1,681.35 | 1.84 |
| Infosys Share Price | 1,829.95 | 1.49 |
| Nestle Share Price | 2,295.65 | 1.45 |
Top losers today
| Trent Share Price | 6,298.95 | -3.18 |
| Coal India Share Price | 424.05 | -2.60 |
| Asian Paints Share Price | 2,769.45 | -2.58 |
| Tata Steel Share Price | 147.57 | -2.24 |
| Shriram Finance Share Price | 3,007.95 | -2.03 |
Market aftermath: Impact on stocks
RVNL and Ircon International Face Steep Declines
State-run railway stocks Rail Vikas Nigam Limited (RVNL) and Ircon International saw sharp declines due to weak Q2 earnings. RVNL shares dropped by 7.2%, settling at an intraday low of ₹443.30. The company reported a 27.24% decline in net profit year-on-year, bringing it down to ₹286.88 crore.
This dip in performance came despite a sequential improvement in profits for the quarter. Ircon, on the other hand, saw its shares decline by 6% to ₹202.45 after reporting an 18% drop in net profit from the previous year’s Q2, despite an 18% QoQ rise. These results point to ongoing challenges for India’s rail infrastructure stocks.
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SAIL Reports a 31% Profit Drop
Steel Authority of India Ltd (SAIL) reported a 31.3% decline in net profit for Q2 FY25, amounting to ₹897.2 crore. The company’s revenue from operations was down by 17% YoY to ₹24,675.2 crore, indicating challenging conditions for the steel industry. Following the announcement, SAIL’s stock fell 3.57% to ₹118.95 on the NSE.
The weaker performance was partially attributed to lower demand and pricing pressures, factors likely to affect its short-term outlook.
IRCON Stock Drops Further
Shares of Ircon International continued their decline, with an additional 5% drop after the announcement of a 12.2% YoY decline in standalone net profit, which settled at ₹202.22 crore for the September quarter. Revenue was also impacted, seeing a 20.3% YoY decrease to ₹2,298.86 crore.
The company reported a shrinking order book as well, which fell from ₹26,034 crore last year to ₹24,253 crore by the end of September 2024. Despite a 17% gain in share price this year, Ircon’s recent results sparked selling pressure, bringing the stock down further.
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Crude Oil and Commodity Market Update
Global factors also weighed on market sentiment, especially crude oil prices, which fell due to disruptions from Hurricane Rafael in the Gulf of Mexico. The hurricane caused the shutdown of 22% of daily oil production and 9.7% of daily natural gas production in the region. As a result: Brent crude oil futures dropped to $75.16 per barrel, a 0.62% decrease. WTI crude oil futures settled at $71.82, down by 0.75%. On India’s Multi Commodity Exchange (MCX), November crude oil futures were down 1.06% to ₹6064.
In a further twist, the US Federal Reserve announced a 25 basis point rate cut, adding a layer of complexity to global commodity prices. With China’s National People’s Congress set to end soon, markets are hopeful for stimulus measures that could positively impact crude demand. Together, these factors create a mixed landscape for the energy sector.
Conclusion
Today’s market movement highlighted a cautious sentiment among investors, driven by a mix of domestic corporate earnings, sectoral downturns, and global factors like crude oil disruptions. For now, investors are navigating this volatility, with sectors like IT and Pharma offering some respite while others, particularly rail infrastructure and steel, struggle to find their footing amidst challenging conditions.
For more stock market insights, check out the StockGro blog.
