Indian Stock Markets Close Higher as Banking Sector Shines; Key Highlights from Engineering, Airlines, and Construction Sectors

After starting the day with positive momentum, Indian benchmark indices sustained their gains and finished higher on Thursday, marking a strong session for certain sectors. Both the BSE Sensex and NSE Nifty50 ended in the green, with specific stocks making notable moves throughout the trading day.

Market Overview: Sensex and Nifty End Higher

At the close, the BSE Sensex gained 144 points, or 0.2%, ending in positive territory, while the NSE Nifty climbed 17 points, up by 0.1%. Among the top gainers were HDFC Bank, Adani Enterprises, and Kotak Mahindra, reflecting strong performance in the banking and financial sectors. Conversely, Cipla, Trent, and Sun Pharma** were among the day’s top losers, indicating some pressure on pharmaceutical and retail stocks.

The broader market also saw mixed results, with the BSE MidCap index ending 0.4% lower, while the BSE SmallCap index finished 0.4% higher. This mixed performance across market segments highlights the sectoral disparities present during the trading session.

Sectoral Performance: Banking Stocks Outperform, IT and Realty Under Pressure

Sectoral indices displayed a mixed bag, with banking and power stocks leading the gains. The banking sector, in particular, saw robust buying, with HDFC Bank and Kotak Mahindra being standout performers. The power sector also registered positive movement, adding to the overall market strength.

In contrast, IT and realty sectors faced selling pressure, pulling down stocks in these categories. While technology companies saw some corrections, the broader market remained resilient, with gains in other key sectors offsetting these losses.

Several stocks hit significant milestones during the day, with Page Industries, Atul, and Coforge touching their respective 52-week highs, signaling continued investor confidence in these companies.

Currency and Commodity Update

In the currency market, the Indian rupee was trading at 83.97 against the US dollar, reflecting a steady performance in line with recent trends. Meanwhile, commodity markets saw a slight uptick in precious metals. Gold prices for the latest MCX contract traded 0.2% higher at Rs 75,100 per 10 grams, while silver prices also rose, trading 0.4% higher at Rs 89,204 per kg.

Engineering Sector Highlight: Apollo Micro Systems’ Share Price Rises

In sector specific news, Apollo Micro Systems saw its share price rise by over 3% on Thursday. The surge followed the company’s announcement that it was declared Lowest Bidder (L1) for a Rs 287.4 million project from Bharat Electronics Limited (BEL) and CAN (OF) Pune for the Indian Navy. The proprietary order from BEL is a significant win for the company, boosting investor sentiment.

This isn’t the first major win for Apollo Micro Systems. In July, the company secured an order from the Indian Army for the procurement of vehicle-mounted counter swarm drone systems, further strengthening its foothold in the defense sector. Despite delivering over 755.4% returns in the last three years, the stock has seen a dip of 14.2% in 2024 so far. However, the recent order win could reignite positive momentum.

Airline Sector: SpiceJet Expands Network, Shares Rally

SpiceJet extended its rally on October 10, gaining nearly 5% as the airline announced the addition of a new station following its recent Rs 30 billion fundraising via Qualified Institutional Placement (QIP). The low-cost carrier launched new UDAN flights connecting Shivamogga in Karnataka with Chennai and Hyderabad, marking Shivamogga’s entry into SpiceJet’s domestic network.

This launch is part of the airline’s broader expansion plans, supported by the capital raised through QIP and an additional Rs 7.4 billion from a previous funding round. SpiceJet’s positive momentum also comes on the heels of resolving a long standing dispute with lessors under Babcock & Brown Aircraft Management (BBAM) for US$ 22.5 million, a significant reduction from the original claim of US$ 131.85 million.

Construction Sector: Ashoka Buildcon Shares Surge

In the construction sector, Ashoka Buildcon shares jumped over 5% after the company, through its joint venture, emerged as the lowest bidder for a Rs 16.7 billion project from the City & Industrial Development Corporation of Maharashtra (CIDCO). The project involves the integrated development of wide roads and construction of major and minor structures, including electrical works under the NAINA project.

Earlier this month, Ashoka Buildcon also won a project worth Rs 4.7 billion from MMRDA, involving the construction of an elevated road from Kalyan Murbad Road to Badlapur Road. The company further bolstered its portfolio by securing contracts worth Rs 1,264 crore for bridge and infrastructure construction projects.

Additionally, Ashoka Buildcon’s subsidiary, Viva Highways, monetized land in Hinjewadi, Pune, for Rs 453 crore, contributing positively to the company’s financial standing. Analysts are optimistic about the company’s order book growth in the second half of FY25, following a lull in government tender activity during the General Elections.

Conclusion: A Day of Mixed Sentiment, but Positive Momentum for Key Sectors

The Indian stock markets witnessed a day of mixed but positive performance, with banking and power stocks lifting the indices higher, while IT and realty stocks faced selling pressure. Specific sectors, such as engineering, airlines, and construction, also made significant headlines with positive developments that could shape their future performance.

As the rupee holds steady and precious metals see modest gains, investors continue to watch broader market trends and sectoral movements closely. With Apollo Micro Systems winning major contracts, SpiceJet expanding its domestic network, and Ashoka Buildcon securing large infrastructure projects, the outlook for these sectors remains promising. Investors should stay updated with the latest developments, particularly as companies prepare for the second half of FY25.

In a market that continues to fluctuate, keeping an eye on key stock movements and sectoral trends will be essential for making informed decisions. As always, understanding the market dynamics and staying informed is crucial for navigating the complex landscape of equity investments.