The Indian stock market bounced back on Monday after a shaky start with initial losses led by declines in PSU banks, financial services, pharma, and FMCG sectors. Early trade saw the Sensex at 79,388.77 and Nifty at 24,140.15 as market sentiment remained mixed amid ongoing global and domestic factors.
Asian Paints Shares Slide Post Q2 Disappointment
Asian Paints faced a steep 9% drop following weak Q2 results, disappointing several brokerages. The company reported a significant 42.4% decrease in net profit, falling to Rs 694.6 crore in Q2 FY25 from Rs 1,205.4 crore a year earlier. The stock’s performance impacted broader sentiment as investors reacted to its weaker-than-expected earnings.
Sectoral Highlights and Market Breadth
Market trend indicators showed positive movement overall, with 563 stocks trading in green and 1,439 stocks trading in red on the NSE. Meanwhile, Nifty Bank was down 0.17% at 51,472.15, Nifty Midcap 100 slipped 0.64% to 55,994.05, and Nifty Small Cap 100 fell 0.96% to 18,268.30.
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In the Sensex pack, Axis Bank, IndusInd Bank, Bajaj Finance, Reliance, ICICI Bank, UltraTech Cement, Bajaj Finserv, and NTPC emerged as the top losers. Tata Motors, Power Grid, Maruti, M&M, SBI, HCL Tech, and Infosys were among the top gainers, balancing out some of the early losses across other sectors.
Asian Markets Mostly in Red, U.S. Markets Provide Limited Support
Asian markets displayed a similar trend with major indices in Shanghai, Hong Kong, Jakarta, Tokyo, Seoul, and Bangkok trading lower. In contrast, the U.S. stock market had closed in the green in the previous session, with the Dow and S&P 500 reaching new highs. Despite this rally, analysts noted that the U.S. market gains no longer serve as a major tailwind for Indian markets, with the U.S. outperforming India this year.
Analysts Weigh In on Market Sentiment and Global Impact
Market experts pointed to rising expectations in the U.S. driven by anticipated tax cuts and pro-business policies, which are boosting corporate earnings. However, for India, downward earnings revisions for FY25 are creating a bearish outlook in the short term. Foreign Institutional Investors (FIIs) have been net sellers, offloading equities worth Rs 3,404 crore on November 8, while domestic institutional investors (DIIs) made net purchases of Rs 1,748 crore, partially offsetting FII sales.
Looking ahead, analysts predict that FIIs may continue reallocating capital to the U.S. markets, keeping pressure on Indian equities as domestic earnings remain under scrutiny.
