The Indian stock market exhibited mixed movements on October 24, 2024, as it grappled with external pressures, particularly from foreign institutional investors (FIIs) selling off shares. The BSE Sensex, which had experienced slight fluctuations, closed at 80,065.16, reflecting a marginal dip of 16.82 points or 0.02 percent. Meanwhile, the Nifty 50 index settled at 24,399.40 after decreasing by 36.10 points or 0.15 percent. This flat closing was primarily influenced by losses within key sectors, including auto and information technology (IT), alongside specific underperformers like Hindustan Unilever, which reported disappointing quarterly results.
The day started off cautiously, with analysts observing the broader pattern of sales from FIIs—who offloaded equities worth approximately Rs 5,684 crores on October 23. This exodus from foreign investors is notable, bringing the cumulative FII net sales for October to around Rs 93,088 crores. Some market experts pointed to inflated valuations within the Indian market, indicating they might seem less appealing compared to lower-priced stocks available globally, particularly in regions like China and Hong Kong.
Despite this undercurrent of selling from FIIs, domestic institutional investors (DIIs) counterbalanced the trend, purchasing equities worth Rs 6,039 crores on the same day. This notable divergence suggests DIIs remain optimistic about domestic resilience within certain sectors, particularly pharmaceuticals, financial services, and public sector banks.
On the BSE, around 1,590 stocks were trading positively, whereas 2,343 stocks logged losses, reflecting an overall hesitation among investors. Gainers from the Sensex included major players like UltraTech Cement, Mahindra & Mahindra, and HDFC Bank, which all showed promising gains. Conversely, Hindustan Unilever faced significant pressure, dropping 4 percent after it revealed a decrease in standalone net profit for Q2 to Rs 2,612 crore.
The broader indices also mirrored this mixed sentiment. For example, the Nifty Midcap 100 index slipped to 56,349.75, reflecting a 0.33 percent drop, whereas the Nifty Bank saw some investors flocking toward it, climbing to 51,531.15 after rising by 0.57 percent, showing signs of resilience amid broader market hesitance.
Sector by sector, the market displayed varying trends. The financial services—especially within the public sector—gained traction as investors sought stability. On the other hand, FMCG (Fast-Moving Consumer Goods) companies continued to struggle under the weight of profit-taking and delayed demand recovery, leading to short-term losses among notable brands.
Investor sentiment has also been affected by external economic conditions. Asian markets, including Shanghai and Tokyo, were trading negatively as well after August’s mixed economic data, pointing toward concerns about broader recovery. After the U.S. market's downturn previously, analysts remain cautious about market conditions as they assess the interplay of international economic indicators.
Looking at specific stocks, Tata Motors led the day's early sessions with gains of about 1.14 percent. Other noteworthy gainers included HDFC Bank and Adani Ports & SEZ, representing the resilience within certain sectors. Yet, the decline of stocks like Hindalco Industries, which plummeted over 5percent, adds pressure on the market, raising concerns among investors.
Even with the challenging environment, traders were on the lookout for specific investment opportunities as Preliminary Purchasing Managers’ Index (PMI) data shows room for growth aligned with Reserve Bank of India (RBI) guidelines. Market participants tucked away any long-term concerns attributed to profit pressures as they prepared for possible fluctuations following October’s earnings announcements.
Overall, the Indian stock market on October 24 highlights the delicate balance between domestic buying and foreign selling, making it particularly interesting to watch as to where momentum shifts next. Investors are advised to remain vigilant, poised to capitalize on both growth and volatility across sectors as financial results and economic data continue to be assessed.
