“Stock Market Wrap: High Volatility Ends in Flat Close, Media Shines While FMCG Drags”

Stock Market Update: High Volatility, Flat Closing

Indian stock markets witnessed a volatile trading session yesterday. After opening above the previous day’s closing levels, the Nifty 50 index touched its highest point at 10:05 AM. However, by 10:52 AM, it reversed course, dipping below the previous day’s levels. Despite the day’s fluctuations, the Nifty 50 closed almost flat, reflecting indecision among investors.

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Sectoral Highlights: Media Shines, FMCG Declines

The market saw divergent performances across sectors. Media stocks emerged as the top performers, leading the day’s gains. On the other hand, FMCG stocks experienced a decline, weighing down the broader indices. This sectoral movement highlights varied investor sentiments across industries.

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Top Gainers: Nifty 50 Leaders

Despite the market’s lackluster close, several stocks posted significant gains.

1. Eicher Motors: ₹4,883.70 ▲ 6.43%
2. Hero MotoCorp: ₹4,604.00 ▲ 1.87%
3. HDFC Life Insurance: ₹694.00 ▲ 1.31%
4. Reliance Industries: ₹1,267.60 ▲ 1.24%
5. Kotak Mahindra Bank: ₹1,707.90 ▲ 1.19%

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Top Losers: FMCG Stocks Lead Declines

The biggest losers of the day were primarily from the FMCG sector, reflecting profit booking and subdued sentiment.

1. Hindustan Unilever: ₹2,389.20 ▼ 3.07%
2. Tata Consumer: ₹925.00 ▼ 2.91%
3. Britannia Industries: ₹4,915.60 ▼ 2.59%
4. BPCL: ₹298.20 ▼ 2.50%
5. Nestle India: ₹2,182.80 ▼ 2.35%

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Global Market Trends

Global cues painted a mixed picture for Indian markets:

• US Markets: Flat performance.
• European Markets: Registered gains.
• Asian Markets: Declined, signaling cautious investor sentiment in the region.

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Economic News: Inflation and Trade Deficit Trends

Wholesale Inflation Rises

India’s wholesale inflation increased to 2.36% in October, up from 1.84% in September, driven by:

• Food prices: ▲ 11.59%
• Manufacturing prices: ▲ 1.50%
• Fuel prices: ▼ 5.79%

Trade Deficit Narrows

India’s trade deficit narrowed by 13.97% year-on-year to $27.1 billion in October.

• Imports: Reached a record high of $66.3 billion, ▲ 3.9%.
• Exports: Grew 17.3% to $39.2 billion.

Edible Oil Imports Decline

India’s edible oil imports fell by 3.1% to 159.6 lakh tonnes in the oil year ending October 2024. The total value of imports dropped to ₹1.32 lakh crore.

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IPO Updates

Niva Bupa IPO

The Niva Bupa IPO listed with a 5.59% gain over its issue price, reflecting strong investor demand.

Zinka Logistics IPO

The Zinka Logistics IPO has been subscribed 0.32 times overall, with retail subscription at 0.90 times. The issue remains open until 18 November.

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Stock-Specific Updates

• Reliance: Formed a ₹70,352 crore joint venture by merging Viacom18’s media businesses with Disney Star. Reliance holds 16.34% in the JV.
• Hero MotoCorp: Reported a 14.21% YoY rise in net profit to ₹1,204 crore in Q2 FY24.
• Hindustan Aeronautics: Net profit grew 22.14% YoY to ₹1,510.48 crore.
• Muthoot Finance: Posted a 20% YoY rise in net profit to ₹1,271.60 crore.
• Tata Power: Commissioned a 126 MW floating solar project in Omkareshwar.
• Vodafone-Idea: Added 42,000 4G sites, its largest-ever quarterly addition.
• SpiceJet: Resolved a ₹763 crore dispute for ₹189 crore and acquired 13 Q400 aircraft.

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Commodities and Currency Updates

• Gold: ₹73,770 (▼ 1.91%)
• Silver: ₹87,730 (▼ 2.64%)
• USD-INR: ₹84.41/USD (Flat)

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Long-Term Returns: A Historical Perspective

Indian markets have delivered impressive long-term returns:

• Sensex: ▲ 13.69% annually over 20 years.
• Nifty: ▲ 13.49% annually over 20 years.

In comparison, US indices have shown moderate growth:

Yesterday’s Stock market session reflected mixed sentiment as high volatility led to a flat closing. While media stocks outperformed, FMCG stocks dragged the indices. Global cues and economic indicators, including rising inflation and narrowing trade deficits, will likely influence market movements in the coming days.

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