Sensex and Nifty managed to sustain their opening gains, both climbing around 1 percent by midday on October 28, bolstered by buying in the financial and oil & gas sectors.
At 12.12 PM, the Sensex was up 1,029 points or 1.3 percent at 80,431, and the Nifty was up 283 points or 1.2 percent at 24,464. About 2,320 shares advanced, 1,093 shares declined, and 132 shares remained unchanged.
An uptick in ICICI Bank's shares following its Q2FY25 results and easing concerns over the Middle East conflict contributed to the market's positive opening. However, analysts remain cautious, warning of potential downside ahead as foreign institutional investors (FIIs) continue to exit and recent corporate earnings have been underwhelming.
Broader market indices also moved positively, with the BSE Midcap up 0.7 percent and the BSE Smallcap up 1.3 percent.
For the week ahead, investors are expected to closely monitor the ongoing Q2FY25 earnings reports, the monthly derivatives expiry, geopolitical developments in the Middle East, trends in FII flows, crude oil prices, and developments around the US Presidential Election.
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Sectoral Trend
All 13 sectoral indices were in positive territory around noon, with Nifty Auto, Bank, Realty, Media, Metal, and PSU Bank leading gains, each rising between 1-3 percent.
Nifty Auto snapped a four-day losing streak, while Nifty Metal, which had been in decline for the past five sessions, rebounded with a 2.5 percent increase, led by Vedanta and Hindalco.
Fundamental View
"A significant market trend during the recent days of market correction is the flight to quality," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "While the Nifty corrected by 8.3 percent from the recent peak, the mid- and small-cap indices corrected by 9.8 percent and 9.3 percent respectively from their recent peaks. The index movements conceal the carnage in the mid and smallcaps where the correction has been above 30 percent in dozens of stocks and even by more than 40 percent in some momentum stocks," he said adding that many largecaps have been steady in a volatile market.
Vijayakumar noted that while easing Israeli-Iran tensions has led to a sharp drop in crude prices, uncertainty around the upcoming US presidential elections will continue to weigh on markets.
Technical View
Akshay Chinchalkar, Head of Research at Axis Securities, said that any Nifty 50 rebound will encounter strong resistance in the 24,413 - 24,462 range, with support positioned at 24,073. "Any break below this support will bring the all-important 23,779 into the picture."
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Key Nifty gainers
Shriram Finance, Adani Enterprises, ICICI Bank, M&M, IndusInd Bank
Key Nifty losers
Coal India, Bharat Electronics, Tech Mahindra, SBI Life, Axis Bank
Key Sensex gainers
ICICI Bank, M&M, IndusInd Bank, JSW Steel, Nestle
Key Sensex losers
Tech Mahindra, Axis Bank, Kotak Mahindra, HDFC Bank
Stock moves
DLF: Shares surged over 6 percent after the company reported a 121 percent YoY jump in its consolidated net profit at Rs 1,387 crore for the quarter ended September.
Interglobe Aviation: Shares plunged over 8 percent after the airline reported a net loss of Rs 987 crore for the quarter ended September compared to a net profit of Rs 189 crore in the year-ago period.
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