• The Indian stock market started positively on October 14, 2024, with Sensex and Nifty showing gains.
• Domestic Institutional Investors (DIIs) supported the market, counterbalancing the selling pressure from Foreign Portfolio Investors (FPIs).
• Despite global uncertainties and FPI outflows, the market demonstrated resilience and volatility.
• The market's performance highlighted its maturity and potential for sustained growth, despite significant FPI outflows and global tensions.

The Indian stock market started on a positive note on Monday, October 14, 2024. The Sensex was trading at 81,690.83, marking an increase of 309 points or 0.38% at 9.18 a.m. Concurrently, the Nifty was trading at 25,062.9, having risen by 98.70 points or 0.40%.

The positive trend reflected across the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with 981 and 1,830 stocks trading in the green, respectively.

The market's upward trajectory was supported by gains in various sectors, with IT and metal stocks leading the charge. Companies such as Wipro, HDFC Bank, L&T, JSW Steel, Tech Mahindra, Infosys, NTPC, and Kotak Mahindra Bank were the top gainers in the Sensex pack. However, not all companies shared in this positive trend. Bharti Airtel, Tata Motors, Sun Pharma, Asian Paints, Nestle, Bajaj Finserv, and Axis Bank were among the top losers.

Domestic Factors and DII Support

On the domestic front, the market was buoyed by the support of Domestic Institutional Investors (DIIs), who counterbalanced the selling pressure from Foreign Portfolio Investors (FPIs). Despite FPIs selling equity worth Rs 58,710 crore in October, the market remained resilient due to DII buying.

This trend of FPI selling and DII buying is expected to continue in the near term, as Chinese stocks are perceived as cheaper compared to India's elevated valuations.

Global factors also played a significant role in shaping the market's performance. The ongoing geopolitical tensions between Israel and Iran were a cause for concern, as any escalation could lead to supply disruptions in the Middle East, impacting crude oil prices and, in turn, affecting India's import costs and inflation.

Additionally, the performance of the US stock market and other global cues also influenced the Indian market's sentiment.

Global Uncertainties and Market Volatility

Despite these challenges, the Indian market demonstrated a mix of resilience and volatility. The Sensex and Nifty showed gains on some days, driven by domestic buying, while remaining cautious due to global uncertainties and FPI outflows.

The market's ability to absorb FPI selling and the anticipation of Q2 earnings and key economic indicators like CPI and WPI also shaped the near-term outlook.

Looking ahead, analysts anticipate that the volatility in the Indian benchmarks will continue. The market will remain closed for the fifth phase of parliamentary election voting in Mumbai on Monday.

However, the anticipation of Q2 earnings, with expectations of good results from IT and banking sectors, contributes to a positive sentiment. This, coupled with the potential for strong corporate earnings, could help offset some of the negative impacts of FPI selling.