• The Indian stock market opened in red on Monday, with significant selling in IT, PSU bank, and pharma sectors.
• HDFC Bank, Bajaj Finance, Tata Steel, Asian Paints, L&T, Sun Pharma, Adani Ports, M&M and JAW Steel were the top gainers, while Infosys, HCL Tech, Tech Mahindra, TCS, NTPC, Axis Bank and Tata Motors were the top losers.
• Market experts advise caution due to relentless FII selling, earnings downgrades for most stocks for FY25, and the impact of the Donald Trump trade.
• Despite the current downturn, the long-term outlook remains positive, with potential for recovery and growth in the future.

The Indian stock market opened in red on Monday, with selling observed in IT, PSU bank, and pharma sectors. The Sensex was trading at 77,247.18 after slipping 333.13 points or 0.43 per cent, while Nifty was at 23,434.00 after slipping 98.70 points or 0.42 per cent. The market trend remained negative with 572 stocks trading in green and 1794 stocks trading in the red on the National Stock Exchange (NSE). The Nifty Bank was at 50,200.80 after rising 21.25 points or 0.04 per cent. The Nifty Midcap 100 index was trading at 53,830.45 after falling 212.65 points or 0.39 per cent. The Nifty Small cap 100 index was at 17,417.20 after slipping 183.85 points or 1.04 per cent.

Market Performance and Key Players

In the Sensex pack, HDFC Bank, Bajaj Finance, Tata Steel, Asian Paints, L&T, Sun Pharma, Adani Ports, M&M and JAW Steel were the top gainers and Infosys, HCL Tech, Tech Mahindra, TCS, NTPC, Axis Bank and Tata Motors were the top losers. Market experts have advised investors to exercise caution as there are no signs of sustained improvement in the market at present. Despite the fall in Nifty, relentless FII selling, earnings downgrades for the majority of stocks for FY25, and the consequences of the Donald Trump trade are weighing on the market.

In Asian markets, except Jakarta and Tokyo markets, Seoul, Shanghai, Bangkok and Hong Kong markets were trading in green. US stock markets closed in red on the previous trading day. Foreign institutional investors (FIIs) sold equities worth Rs 1,849 crore on November 14, while domestic institutional investors bought equities worth Rs 2,481 crore on the same day.

Global Factors and Market Trends

The market movements this year have shown a big variation across countries and regions. The Euro Zone index Stoxx 50 has given only 5.14% YTD returns. The performance of the economy and expectations around earnings growth are the main factors behind this variation in performance. Asian Paints shares dropped around 9 per cent after several brokerages showed disappointment over its poor Q2 results.

Asian Paints posted a huge 42.4 per cent drop in net profit at Rs 694.6 crore in the July-September period (Q2 FY25), from Rs 1,205.4 crore in the year-ago period. The sustained rally in the US markets which have taken the Dow and S&P 500 above 40,000 and 6,000 respectively is no longer a tailwind for Indian markets.

In Asian markets, except for Seoul and Jakarta markets, the markets of Shanghai, Hong Kong, Tokyo and Bangkok were trading in green. Investors are advised to opt for the safe strategy of remaining invested and accumulating stocks in segments which can weather the volatility. This Diwali, it is unlikely to see fireworks in the market. India has been underperforming in October with Nifty down 5.7 per cent when markets in the US and Japan have delivered positive returns and China and Hong Kong have hugely outperformed.

Investor Advice and Market Outlook

Market experts anticipate that Samvat 2081 will have a major impact on the global economy. Important factors to watch throughout Samvat 2081 will include the Union Elections, the Union Budget, the recovery of China's economy, activities during the festive season, fluctuations in crude oil prices, and levels of investment inflows. Most of the other broader market indices continued to get battered due to high volatility on Dalal Street.

Q2 earnings season has been underwhelming, with many companies reporting weaker-than-expected results. Major players across sectors like IT, pharmaceuticals, and textiles are feeling the pressure, adding to the cautious market sentiment.

The overall market capitalisation of the firms listed on the BSE plunged to nearly ₹444.7 lakh crore from nearly ₹453.7 lakh crore in the previous session, making investors poorer by about ₹9 lakh crore in a single day.

Among the sectoral indices, Nifty PSU Bank (down 4.18 per cent), Realty (down 3.38 per cent) and Metal (down 3 per cent) crashed the most. The market remains in a consolidation phase, with little change in chart structure. A break below 24,900 could open doors for further weakness, potentially testing the 24,700 level.