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sensex

• Indian shares opened lower due to foreign selling and weak corporate earnings, with Nifty 50 and Sensex losing 0.24% and 0.28% respectively.
• Cipla fell 3.6% despite a quarterly profit beat, while Maruti Suzuki India rose 1.75% after a 14% YoY festive season sales growth.
• Nifty 50 and Sensex are down about 7% from record-high levels hit on Sept. 27, with foreign outflows for 22 straight sessions.
• In the auto sector, Maruti Suzuki Brezza was the top-seller in September, while Bajaj Housing Finance shares remained under the bulls' radar.

Indian shares opened lower on Wednesday, with sentiment remaining weak due to persistent foreign selling and dull corporate earnings. Investors are also awaiting key U.S. data and the outcome of the U.S. presidential election.

The NSE Nifty 50 shed 0.24% to 24,411.9 points as of 9:57 a.m. IST, while the BSE Sensex lost 0.28% to 80,142.11. Seven of the 13 major sectors logged losses at the open. The broader, more domestically focussed small and mid-caps rose 1% and 0.5%, respectively.

Drug maker Cipla fell 3.6% and was the top loser by percentage on the Nifty 50. The stock fell about 5.5% in two sessions despite reporting a quarterly profit beat during market hours on Tuesday.

Several brokerages cut their earnings estimates for Cipla for fiscal years 2025 and 2026, citing a likely delay and uncertainty in launching key drugs, muted growth in the U.S. and an increase in operating costs.

Car maker Maruti Suzuki India, which fell 3.8% in the previous session due to a revenue slowdown and profit drop in the September quarter, rose 1.75% on the day. It was among the top five Nifty 50 gainers. India's top carmaker by sales said sales by dealers to customers in the key festive season grew 14% year-on-year.

Global Market Trends and Foreign Selling

The benchmark indexes Nifty 50 and Sensex are down about 7% from record-high levels hit on Sept. 27, with sentiment dampened by foreign outflows for 22 straight sessions and a largely tepid earnings season so far.

The Nifty 50 has lost about 5.5% in October so far, and is on track for its worst monthly performance since March 2020, when lockdown-related restrictions rattled investors and triggered a meltdown across global equity markets.

Volatility could rise in the next few sessions ahead of key U.S. non-farm payrolls data on Friday and the U.S. presidential elections on Nov. 5, two traders said. Among individual stocks, consumer goods maker Marico rose 7.3% after its second-quarter profit beat estimates.

In other news, the Gift Nifty futures were trading at 24,445.5, as of 07:55 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday's close of 24,466.85. Foreign selling from Indian shares in October has risen to$10.82 billion, as of Oct. 29, according to National Securities Depository data, set for record monthly outflows.

Auto Sector and Housing Finance Updates

In the auto sector, September sales numbers and their growth for September 2024 were released. Carmakers such as Maruti Suzuki, Tata, Hyundai, Mahindra, Kia, and Audi and others have shared their sales numbers for the month of September 2024.

Alongside carmakers, two-wheeler manufacturers such as Bajaj, TVS, Hero MotoCorp, and Honda have also shared their sales numbers. Last month, the Maruti Suzuki Brezza was the top-seller, and SUVs topping the sales charts has been the norm for a while now.

In the housing finance sector, Bajaj Housing Finance shares remained under the bulls' radar on Tuesday. Bajaj Housing Finance share price today opened with an upside gap at ₹175.50 apiece on the NSE and touched an intraday high of ₹181.50 within a few hours of the Opening Bell.

While climbing to this intraday high, the newly listed Bajaj Group shares locked in the upper circuit for a second straight session post-listing. This intraday high is around 160 per cent higher than the Bajaja Housing Finance IPO price band's upper price band. However, Phillip Capital sees more upside in Bajaj Housing Finance shares.