Indian markets nosedive before Diwali – FIIs dump Indian stocks & move to China | Weekly Update October 25th

Hello Readers!
It seems nobody’s got a bigger dumping story than the Indian equities this week as FIIs unloaded a whooping amount of over Rs. 20 crore this week. But there’s more to the market than it seems. So, let’s take a closer look at what went on in the week that was.
🧾In this Article
Cover story: War spooks market but bulls take charge
📈 Weekly Market Wrap-up
The Indian stock market faced a challenging week, with both the BSE SENSEX and NIFTY 50 indices experiencing significant declines. The BSE SENSEX closed at 79,402.29, down by 1,604.32 points or 2.0%, while the NIFTY 50 settled at 24,180.80, 569.05 points lower (2.3%)
Index | Change (%) |
Nifty 50 | -2.3% |
Nifty Bank | -1% |
Nifty Midcap Select | 5.2% |
Nifty 100 | -2.9% |
Nifty Midcap 50 | -6% |
Nifty Midcap 100 | -5.5% |
Nifty Smallcap 50 | 6.1% |
Nifty Smallcap 100 | 6.4% |
Nifty IT | 1.6% |
Nifty Pharma | 2.9% |
Nifty PSU Bank | 4.6% |
Nifty Private Bank | 1.3% |
Sector Spotlight
The Indian stock market’s sectoral indices faced a challenging week, with all experiencing declines. The BSE IT index led the losses, dropping 1.57% to 41,727.04. The BSEFMC index followed closely, declining 3.9% to 21,400.19. The BSE CG, BSE CD, and BSE HC indices also suffered, losing 7.51%, 5.61%, and 3.17%, respectively.
Nifty 100 Top gainers
- Axis Bank Ltd. = 1,189.35 (↑57.50)
- HDFC Bank Ltd. = 1,743.40 (↑70.25)
- Varun Beverages Ltd. = 611.20 (↑22.80)
- Shree Cement Ltd. = 24,956.80 (↑711.70)
- Wipro Ltd. = 543.45 (↑14.70)
Nifty 100 Top losers
- IndusInd Bank Ltd. = 1,041.60 (↓305.75)
- Bharat Heavy Electricals Ltd. = 216.85 (↓37.35)
- ABB India Ltd. = 7,521.65 (↓1,169.05)
- Siemens Ltd. = 6,776.45 (↓941.20)
- Indian Oil Corporation Ltd. = 146.31 (↓17.97)
FII and DII Activity:
Foreign Institutional Investors (FIIs) were net sellers this week, dumping Indian equities worth Rs 20,024.27 crore. On the other hand, Domestic Institutional Investors (DIIs) were net buyers, investing Rs 22,914.63 crore in Indian equities..
Date | FII Net Activity in crores | DII Net Activity in crores |
21-Oct-24 | -2,261.83 | 3,225.91 |
22-Oct-24 | -3,978.61 | 5869.06 |
23-Oct-24 | -5,684.63 | 6039.9 |
24-Oct-24 | -5,062.45 | 3620.47 |
25-Oct-24 | -3036.75 | 4159.29 |
Total | -20,024.27 | 22914.63 |
Global Gossip
The Dow ended Wednesday’s session with its biggest one-day loss since early September, dropping more than 400 points, or 0.96%. The Dow Jones Industrial Average declined by 1161.51 points (-2.68%), the S&P 500 fell by 29.06 points (-0.16%), and the Nasdaq Composite dropped by 56.55 points (-0.96%). On the other hand, the FTSE 100 gained 109.41 points (1.31%), the CAC 40 rose 193.78 points (0.99%), and the Nikkei 225 increased by 115.51 points (1.52%). The Hang Seng Index shed 1067.83 points (-2.74%) and the Shanghai Composite lost 213.96 points (-1.03%). However, the Shenzhen Component Index gained 38.14 points (1.17%).
Rupee Report
The Indian Rupee (INR) experienced a minimally positive weekly gain of 0.01%, closing at 84.04 against the dollar.
Gold Surges
Gold prices had a strong week, gaining 3.44%. The yellow metal closed at $2,747.60, up from $2,663.80 the previous week. The price fluctuated between $2,717.35 and $2,748.50 during the week. Over the past 52 weeks, gold has traded between $1,811.03 and $2,748.50.
🍟 Quick Bites
💰 CRISIL projects that the gas procurement cost for CNG companies will increase by ₹2-3 per kg.
🛒 The government intends to offer chana whole and masur dal at subsidized prices through its ‘Bharat’ grocery brand.
📈 According to a RAI survey, India’s retail sales grew by 5% year-on-year in September, with food and grocery leading at 12%, followed by jewellery at 8%, consumer durables and electronics at 6%, and both QSR and apparel at 5%.
🏦 In its October meeting, the People’s Bank of China lowered its key lending rates, reducing the 1-year rate to 3.1% and the 5-year rate to 3.6%.
🚀 The government has approved a ₹1,000 crore venture capital fund for the space sector under IN-SPACe, to be disbursed over five years to support startups.
📊 India’s manufacturing PMI increased to 57.4 in October from 56.5 in September, while the services PMI rose to 57.9 from 57.7, indicating growth in both sectors.
🔎 Stocks in news
🎬 India’s entertainment industry incurs annual losses of around ₹22,400 crore due to piracy, with 51% of consumers accessing pirated content, according to EY.
🏗️ Ambuja Cements will acquire a 46.80% stake in Orient Cement for ₹8,100 crore.
⚡ Power Grid’s board has approved raising up to ₹5,000 crore through private placement and has secured a project to build and operate a 6 GW power transmission system across Rajasthan and Haryana.
🚄 RVNL has formed a new subsidiary, ‘Rail Vikas Nigam Ltd (One Partner),’ in Saudi Arabia.
💰 Mazagon Dock’s board has approved an interim dividend of ₹23.19 per share with 30 Oct as the record date, along with a 1:2 stock split of its shares.
🏢 Oberoi Realty received booking orders worth ₹1,348 crore at the launch of its new residential project in Thane, Maharashtra.
🌬🚢 Garden Reach Shipbuilders received a ₹491 crore order from the DRDO to build and supply an Acoustic Research Ship.
Earnings corner
📈 Bajaj Finserv reported an 8.19% year-on-year rise in net profit to ₹2,086.97 crore in the July-Sept quarter.
💹 SBI Life reported a 39.25% year-on-year rise in net profit to ₹529.42 crore in the July-Sept quarter.
🏍️ TVS Motor reported a 45.08% year-on-year rise in net profit to ₹560.49 crore in the July-Sept quarter.
📉 Bajaj Holdings reported a 3.67% year-on-year fall in net profit to ₹1,436.36 crore in the July-Sept quarter.
🔧 Hindustan Zinc reported a 34.59% year-on-year rise in net profit to ₹2,327 crore in the July-Sept quarter.
⚡ CG Power reported an 8.77% year-on-year fall in net profit to ₹221 crore in the July-Sept quarter and plans to raise up to ₹3,500 crore through a QIP.
🏢 UltraTech reported a 36% year-on-year fall in net profit to ₹820 crore in the July-Sept quarter.
🏠 Bajaj Housing Finance reported a 21% year-on-year rise in net profit to ₹545.60 crore in the July-Sept quarter.
💼 Tech Mahindra reported a 153% year-on-year rise in net profit to ₹1,250 crore in the July-Sept quarter, declaring a dividend of ₹15 per share with a record date of 1 November.
🏦 Kotak Mahindra reported a 13% year-on-year rise in net profit to ₹5,044 crore in the July-Sept quarter.
💻 Persistent Systems reported a 23.45% year-on-year rise in net profit to ₹435 crore in the July-Sept quarter.
🍦 Hindustan Unilever reported a 2.45% year-on-year fall in net profit to ₹2,591 crore in the July-Sept quarter, declaring a dividend of ₹29 per share with a record date of 6 Nov, and announced the separation of its ice cream business.
🎟️ One97 (Paytm) reported a net profit of ₹928.30 crore in the July-Sept quarter, boosted by a one-time income of ₹1,345 crore from the sale of its ticketing platform to Zomato.
⚡ Adani Energy Solutions reported a 144.66% year-on-year rise in net profit to ₹674.96 crore in the July-Sept quarter.
🌱 Adani Green Energy reported a 25.81% year-on-year fall in net profit to ₹276 crore in the July-Sept quarter.
🏦 SBI will sign a €150 million credit agreement with the German Development Bank tomorrow (24 Oct) to finance renewable energy projects.
⚡ JSW Energy’s subsidiary has signed a 25-year power purchase agreement with the Solar Energy Corporation for 700 MW of solar capacity.
Sustainability news:
☀️️ JSW Energy’s subsidiary JSW Neo Energy will acquire three subsidiaries of Hetero Group for ₹630 crore; together, these subsidiaries hold 125 MW of wind energy capacity.
🚌 Ashok Leyland’s subsidiary OHM Global Mobility has received a supply order for 500 electric buses from the Metropolitan Transport Corporation, Chennai.
📈 Gujarat Fluorochemicals’ subsidiary GFCL EV has approved raising ₹1,000 crore to expand in the EV and energy storage business.
🚀 IPO corner
Subscriptions:
- Deepak Builders & Engineers India Limited: Overwhelmingly subscribed with a subscription multiple of 41.65x.
- Waaree Energies Limited: Subscribed 8.84 times, indicating strong investor interest.
- Godavari Biorefineries Limited: Moderately subscribed with a subscription multiple of 1.52x.
- Afcons Infrastructure Limited: Undersubscribed with a subscription multiple of 0.12x.
Upcoming IPOs:
- Swiggy Limited IPO (date to be announced)
- ACME Solar Holdings Limited IPO (date to be announced.
News:
📈 October has witnessed significant IPO activity, with 21 companies getting listed so far, including Hyundai India’s record IPO that raised ₹27,870 crore despite low retail interest, and a thriving SME segment with many listings exceeding 100% subscription rates.
🚀 Hyundai India marked the largest IPO to date in October, raising ₹27,870 crore through the Offer for Sale (OFS) route, but retail investor interest was unexpectedly low, leading to a less-than-full subscription.
📉 Swiggy has reduced its IPO valuation target by 10-16% to $12.5-$13.5 billion due to market volatility impacting investor sentiment.
💼 C2C Advanced Systems has received NSE approval for its SME IPO, planning to issue up to 4,362,865 equity shares to fund asset purchases and working capital, with Beeline Capital and Mark Corporate Advisors as lead managers.
🏦 HDB Financial Services’ IPO will involve its parent firm HDFC Bank, which owns 94.6% of the company, selling shares worth ₹10,000 crore through an offer-for-sale.
Indian markets nosedive before Diwali – FIIs dump Indian stocks & move to China
Have you noticed a little less sparkle in the lead-up to Diwali this year? It turns out, the Indian stock market might be reflecting that. With the festive season approaching, foreign investors seem to be busy shopping elsewhere – in China’s stock market, to be precise.
This sudden shift has left many wondering: is India losing its shine for global investors? Here’s a breakdown of what’s happening:
Foreign Investors on a Selling Spree
Imagine a massive Diwali sale, but instead of firecrackers and diyas, it’s for Chinese stocks. That’s what’s been happening lately. Foreign investors have pulled out a whopping $11 billion (over Rs 93,000 crore) from Indian equities in October! This is the biggest monthly selloff since 2002, and it’s definitely causing some jitters.
Why the China Craze?
China’s stock market has been on a tear lately, thanks to a series of government stimulus measures. Think of it as a way to boost their economy and make their stocks more attractive to investors. This “sale” has proven too tempting to resist for many foreign investors, who are now pouring money into China.
But It’s Not Just About China
While China’s a big player, it’s not the only reason for the foreign investor exodus. Other factors at play include:
- High Inflation: Rising inflation in India (reaching 5.49% in September, the highest this year) is making investors nervous.
- Market Overvaluation: Some experts believe Indian stocks might be a bit overpriced, making them less appealing.
- US Elections: The upcoming US elections can create uncertainty in the global market, prompting some investors to play it safe.
- Disappointing Earnings: Some major Indian companies haven’t been performing as well as
So, Should You Panic?
Hold on a minute! While the situation might seem gloomy, there’s a silver lining. Here’s why:
- Domestic Investors Stepping Up: Unlike previous times, Indian investors are playing a crucial role.
They’ve been buying up shares to counter the foreign outflow, preventing a major crash. This shows a maturing market with more resilience.
- India’s Strong Fundamentals: Despite the current dip, India’s expected GDP growth (around 6-7%) is much better than China’s (projected at 4%). This strong underlying strength makes India a good long-term bet for many investors.
The Road Ahead
The next few months will be interesting. The outcome of the US elections, global events, and central bank policies will all influence where money flows. But experts believe this might be a temporary shift, not a complete abandonment of India.
The Takeaway
Markets, like festivals, have their ups and downs. While Diwali might seem a little less sparkly this year in the stock market, remember, India’s long-term prospects remain bright. So, stay calm, and happy investing (responsibly, of course)!
Upcoming key financial events for the week:
Date | Event |
29-Oct-24 | USD CB Consumer Confidence
USD JOLTS Job Openings |
30-Oct-24 | EUR German Prelim CPI m/m
GBP Annual Budget Release USD ADP Non-Farm Employment Change USD Advance GDP q/q |
31-Oct-24 | USD Core PCE Price Index m/m
USD Employment Cost Index q/q USD Unemployment Claims |