At 7:30 AM, GIFT Nifty futures were trading at 24,130, down roughly 100 points from the Nifty futures’ last close, indicating a cautious start to the trading day.
On Friday, benchmark indices such as the BSE Sensex and Nifty 50 ended the session in the red for the second consecutive day, reflecting the broader market’s struggle.
- BSE Sensex: Down by 55.47 points (-0.07%), closing at 79,486.32
- Nifty 50: Down by 51.15 points (-0.21%), closing at 24,148.20
Stock Performance: A Mixed Bag
Among the Nifty 50 stocks, 27 ended in the red, with Trent, Coal India, Tata Steel, Asian Paints, and State Bank of India leading the losses. These stocks dropped by as much as 3.5%, reflecting broader market concerns.
On the other hand, Mahindra & Mahindra, Titan, Tech Mahindra, Nestle India, and Infosys were among the 23 stocks that managed to post gains, up by as much as 2.4%. Despite the overall market weakness, these stocks showed resilience, largely driven by strong fundamentals in their respective sectors.
Broader Market Struggles: Midcaps and Smallcaps Underperform
The broader markets fared even worse, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by 1.33% and 1.70%, respectively. This highlights the growing pressure on smaller and mid-sized companies, which are struggling to maintain momentum in a challenging market environment.
Sector Performance: IT, Pharma, and FMCG Lead, Realty and Media Lag
Across sectors, the picture was largely negative. However, Nifty IT, Pharma, and FMCG sectors showed some resilience, finishing the day in the green. These sectors were able to weather the broader market decline, with technology, healthcare, and consumer goods stocks attracting investor interest.
Meanwhile, sectors like Nifty Realty and Nifty Media suffered the most, falling by over 2% each. These sectors, which are sensitive to economic conditions and consumer spending, faced increased headwinds.
India Inc’s Earnings: A Tough Quarter for Many
As India’s corporate earnings for the September 2024 quarter (Q2FY25) come in, many companies are grappling with muted revenue growth, declining margins, and slower profit growth. The pressure is particularly evident in the non-financial sectors, where profit declines have been more pronounced.
However, banking, financial services, and insurance (BFSI) firms have managed to outperform, driven by strong demand for financial products and services. The BFSI sector continues to show robust growth, with many companies posting solid results despite broader economic challenges.
What’s Next for Investors?
As the global landscape evolves, investors are closely watching how US political developments and China’s economic challenges will influence investment strategies in emerging markets like India. With FIIs playing a key role in shaping market trends, all eyes are on how these global factors will impact foreign inflows into India.
