October 25, 2023
New Delhi, India
Indian Stock Market Falling Today
Nifty and Sensex Decline
The Indian stock market commenced the day with a promising gap-up opening, only to experience a significant downturn as trading progressed. All major indices witnessed pronounced sell-offs. The BSE Sensex initially displayed a positive trend, opening at 64,619, but later plummeted to an intraday low of 63,912, resulting in a loss of nearly 1,500 points over two sessions. Similarly, the Nifty 50 began the day on a positive note but soon slipped below the critical support level of 19,200, suffering a decline of over 450 points over the past two sessions. Even the Bank Nifty dipped below 43,000, reflecting a substantial loss of almost 900 points within the current week.
Nifty 50 closed at 19,222 down 0.83% and Sensex at 64,049 down 0.81%.
Global Pressures
Escalating US Treasury yields have exerted stress on equity markets globally, including India’s renowned Dalal Street. The ongoing Israel-Hamas conflict, a strengthening US dollar, and surging crude oil prices have compounded these concerns. India, which relies on imports for approximately 85% of its crude oil requirements, faces potential economic and inflationary challenges as oil prices continue to rise. (source: Mint)
Oil Prices Rises 2% amid Middle East Tensions
Impact of Q2 Earnings
Prominent companies, such as DMart, TCS, and Infosys, have reported disappointing Q2 results for 2023. Even though some companies, such as ICICI Bank and Kotak Mahindra Bank, delivered robust Q2 results, investors appeared less enthusiastic compared to the Q1 2023 earnings reports.
Also Read: Mamaearth’s Parent Company, Honasa Consumer, Prepares for a Rs 1,700 Crore IPO
Metal Sector Gains
Amid the declining Indian stock market, certain positive developments have emerged. Metal companies, including Hindalco Industries, Tata Steel, and JSW Steel, registered gains following China’s approval of a trillion-yuan sovereign bond issue to fund infrastructure development. Furthermore, the decline in oil prices bodes well for India, a major oil importer.
Sugar-related stocks, such as Balrampur Chini Mills, Shree Renuka Sugar, and Dhampur Sugar, surged due to rising global sugar prices, which recently reached a 12-year high, attributed to tightening supply.
Delta Corp witnessed an 8% surge after an Indian court instructed GST intelligence not to issue final orders on tax notices against the casino operator without court authorization.
KPI Green Energy recorded a 3% gain following its acquisition of a new order for a wind-solar hybrid power project.
Sebi orders defreezing of bank, demat accounts, MF folios of Rana Kapoor
In another development, Sebi has authorized the unfreezing of Rana Kapoor’s bank accounts, shareholdings, and mutual funds. Kapoor, the former MD and CEO of Yes Bank, has been in custody since March 2020 in connection with the DHFL money laundering case.
Stock Splits
Furthermore, BCL Industries Ltd. announced a stock split, with a record date scheduled for October 27, 2023. Under this plan, each stock of the company will be subdivided into ten stocks.
Check: Upcoming Stock Splits
Despite these recent challenges, the Indian stock market continues to navigate a dynamic global landscape while confronting its unique economic concerns.
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