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Sensex, Nifty Surge

• On October 18, 2024, the Sensex climbed 218 points, closing at 81,224.75, while the NSE Nifty closed at 24,854.05, gaining 104.20 points.
• Ola Electric's stock continued to slide, closing at a record low of Rs 86.95, falling over 45 per cent from its highest level.
• Buying was observed across all sectors, except IT and FMCG, indicating a positive sentiment among investors.
• The market's future performance will likely be influenced by a combination of domestic and global factors, including the strategies of foreign and domestic investors, the performance of various sectors, and the overall economic environment.

The Indian stock market witnessed a significant development on October 18, 2024, as the Sensex climbed 218 points, closing at 81,224.75. This marked a gain of 0.27 per cent at the end of trading.

Today, the NSE Nifty closed at 24,854.05, gaining 104.20 points or 0.42 per cent. This upward trend was observed across both the Sensex and Nifty indices, indicating a positive sentiment in the market.

However, not all stocks shared in this upward trajectory. Ola Electric's stock continued to slide, closing at a record low of Rs 86.95. The stock, run by Bhavish Aggarwal's EV company, had once reached an all-time high of Rs 157.40 after its public debut at Rs 76 apiece. However, it has since fallen over 45 per cent from its highest level. On the day in question, Ola Electric's stock touched a low of Rs 85.02 and a high of Rs 88.

Despite the underperformance of Ola Electric's stock, buying was observed across all sectors, including auto, PSU banks, financial services, metal, realty, media, and energy. The only sectors that did not participate in this buying spree were the IT and FMCG sectors. This broad-based buying indicates a positive sentiment among investors and could be a sign of confidence in the market's future performance.

Market Performance and Key Players

The market's performance was mixed, with 1,942 stocks trading in the green on the Bombay Stock Exchange (BSE), 1,993 stocks in the red, and 108 stocks closing unchanged.

Among the top losers in the Sensex pack were Infosys, Asian Paints, Nestle India, Hindustan Unilever Limited, Tech Mahindra, Titan, Maruti, ITC, Bajaj Finance, and M&M. On the other hand, the top gainers included Axis Bank, ICICI Bank, Tata Motors, Tata Steel, NTPC, JSW Steel, Sun Pharma, SBI, Adani Ports, TCS UltraTech Cement, and HDFC Bank.

Foreign institutional investors (FIIs) sold equities worth Rs 7,421 crore on October 17, while domestic institutional investors bought equities worth Rs 4,979 crore on the same day. This indicates a divergence in the investment strategies of foreign and domestic investors.

According to Krishna Appala, Senior Research Analyst at Capital Mind Research, the market extended its negative trajectory for the third consecutive week, with the Nifty 50 down 5.2 per cent from its recent peak. On a weekly basis, the Nifty 50 declined by 0.4 per cent, while the CNX Midcap dropped 0.7 per cent, and the CNX Smallcap showed a modest gain of 0.5 per cent, Appala said.

Historical Similarities and Market Outlook

This market scenario is reminiscent of historical events where certain sectors outperformed others, leading to a mixed market trend. For instance, during the 2008 financial crisis, while most sectors suffered significant losses, certain sectors such as FMCG and healthcare managed to hold their ground due to their defensive nature. Similarly, in the current scenario, while the IT and FMCG sectors did not participate in the buying spree, other sectors such as auto, PSU banks, financial services, metal, realty, media, and energy saw significant buying.

Overall, the Indian stock market's performance on October 18, 2024, was marked by a rise in the Sensex and Nifty indices, despite the underperformance of certain stocks like Ola Electric. The broad-based buying across various sectors, barring IT and FMCG, indicates a positive sentiment among investors.

However, the market's negative trajectory over the past three weeks, as pointed out by experts, suggests that investors should exercise caution and closely monitor market trends. The market's future performance will likely be influenced by a combination of domestic and global factors, including the strategies of foreign and domestic investors, the performance of various sectors, and the overall economic environment.