Sensex, Nifty stage a comeback after 5-day slump as financials, metals lead the way

All sectoral indices were in the green, with Nifty Auto, Bank, Metal, Pharma, PSU Bank, Healthcare, Realty, and Media gaining between 1 and 4 percent.

After a five-session slump, the Sensex and Nifty made a strong comeback on October 28, closing in the green thanks to a surge in financial, metal, and IT stocks.

At close, the Sensex was up 602 points or 0.8 percent at 80,005, and the Nifty was up 158 points or 0.7 percent at 24,339. About 2,470 shares advanced, 1,357 shares declined, and 151 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.

"This might just be a breather, as it's still uncertain whether the market has bottomed out. Much depends on geopolitical factors, and continued FII outflows remain a negative aspect," said Osho Krishan, Technical and Derivative Analyst at Angel One. "Any relief from global geopolitical tensions could lead to a decent revival, though it's unlikely to be very aggressive, as most data suggests the market may still see further correction."

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Krishan added that if put writers begin covering positions, the market could see some relief, but whether this translates to a brief bounce or sustained reversal is uncertain.

All sectoral indices were in the green, with Nifty Auto, Bank, Metal, Pharma, PSU Bank, Healthcare, Realty, and Media gaining between 1 and 4 percent. The BSE Midcap index rose 0.7 percent, and the Smallcap index was up 1.1 percent.

Nifty Auto ended a four-day losing streak, while Nifty Metal, after five consecutive sessions of decline, rebounded with a 2.7 percent surge, driven by Tata Steel and Adani Enterprises. Nifty Realty also broke its five-day slide, with DLF leading the gains after its net profit more than doubled year-on-year to Rs 1,387 crore in Q2FY25.

On the Nifty 50, Shriram Finance, Adani Enterprises, Wipro, ICICI Bank, and Eicher Motors topped the gainers’ list, rising 3 to 5 percent. Coal India, Axis Bank, Kotak Mahindra, Bajaj Auto, and Hero MotoCorp were the biggest losers, each down 1-4 percent.

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Shares of Shriram Finance soared over 5 percent, making it the top gainer on Nifty following a robust performance in Q2FY25. In contrast, Coal India's stock plummeted more than 4 percent, becoming the worst performer on Nifty 50 after it reported a drop in its consolidated net profit for the September quarter.

"Moving forward, this strength (in Nifty) may persist as long as it stays above 24,000. Only a decisive drop below 24,000 might trigger panic in the market," said Rupak De, Senior Technical Analyst at LKP Securities. "On the higher end, resistance is seen at 24,500, and a decisive move above this level could spark a rally in the Nifty."

Looking ahead, investors will be closely watching Q2FY25 earnings, the monthly derivatives expiry, evolving Middle East developments, FII flow trends, crude oil prices, and updates around the US Presidential Election.

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