Indian markets halt two-day winning streak amid geopolitical concerns

The Israeli-Palestinian conflict escalated into a full-scale war on Saturday when the militant group Hamas launched an invasion, catching Israel seemingly unprepared. Israeli Prime Minister Benjamin Netanyahu stated that Hamas would face consequences of an unprecedented magnitude.

Economic data and earnings season to dominate the week

The week commencing on October 9 is filled with significant national and global macroeconomic data releases that have the potential to impact financial markets. In India, key data points include the release of CPI inflation (on October 12) and WPI inflation (on October 13) figures for September. Additionally, data on India’s trade exports, imports, and trade deficit (on October 13) will be made available.

The earnings season for Indian markets will be initiated by Tata Consultancy Services (TCS) on October 11, with the release of its results for the July-September quarter (Q2). On the same day, TCS will also consider a buyback of equity shares. Subsequently, results for the second quarter of FY24 will be announced in India by various companies, including Infosys, HCL Tech, HDFC AMC, and Tata Metaliks (on October 12), followed by Den Networks, Hathway, HDFC Life, and Aditya Birla Money (on October 13), and D’Mart, Dalmia Bharat (on October 14), and HDFC Bank (on October 15).

Trading highlights of the day

In Monday’s trading session, the benchmark indices concluded with losses, as Nifty ended the day down by 0.72%, slipping below the 19,600 level, while Sensex closed lower by 0.73%, falling below the 65,600 level. Furthermore, the Nifty Midcap has concluded with a significant downturn of 1.34 per cent, while the Nifty Smallcap has wrapped up with a substantial loss of 1.78 percent.

Regarding sector performance, none of the major sectors exhibited positive trading, with Nifty PSU Bank witnessing a substantial decline of 3%, followed by Nifty Media, Nifty Metal, and Nifty Financial Services.

Among the Nifty50 constituents, notable gains were observed in stocks such as Dr Reddy’s Laboratories, HCL Technologies, Tata Consumer Product, and Hindustan Unilever. Conversely, Adani Ports, Hero Motocorp, HDFC Life, and M&M were among the top decliners.

In the broader market indices, stocks such as Oil India, L&T Technology Services, Angel One, and Aavas Financiers showed positive movements, while Adani Power, Union Bank, UCO Bank, and Indian Overseas Bank incurred losses.

Overall, the sentiment in the broader market remained negative, with approximately 355 stocks advancing compared to 1,704 stocks declining, signifying a prevailing pessimistic market sentiment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.