Market Update: Gift Nifty Slips, Paras Defence Secures L&T Deal, Indian Oil Cancels Rights Issue & Today's Top Buzzing Stocks

Indian stock markets witnessed a further decline as the trading session advanced, ending on a weaker note. Both major indices, the Sensex and Nifty, faced a significant drop on September 30 as investors cashed in profits, capitalizing on recent record-highs. This deepened the losses incurred in the previous session.

By the end of the trading day on Monday, the BSE Sensex had plummeted by 1,272 points, marking a 1.5% drop. Simultaneously, the NSE Nifty also experienced a sharp decline, closing 357 points lower, equivalent to a 1.4% drop.

Despite the overall bearish trend, some stocks like NTPC, Tata Steel, and Britannia managed to register gains. However, others like Trent, Axis Bank, and Reliance Industries were among the top losers, adding to the market’s downward momentum.

For a detailed analysis of Bank Nifty companies and their impact, a review of Equitymaster’s Bank Nifty Companies list could provide useful insights. Broader markets mirrored this negative sentiment as well, with the BSE Mid Cap index closing 0.3% lower and the BSE Small Cap index remaining flat.

Among sectoral indices, only the metal sector managed to hold on to gains, while other sectors, including banking, auto, realty, and finance, saw considerable selling pressure. The banking sector, in particular, was hit hard with significant losses.

On a positive note, gold prices edged higher. The most recent MCX gold contract was trading 0.2% higher at ₹75,853 per 10 grams during the closing hours of the Indian stock market on Monday.

As of 7:50 AM today, the Gift Nifty, which gives an indication of the market’s opening, was trading 6 points lower at 26,000 levels. This suggests a subdued start for Indian markets today, following the trend seen in the Gift Nifty.

Key Stocks in Focus Today

Aurobindo Pharma is expected to be a major focus point today. The company’s share price declined by 4.5% on September 30 after its subsidiary, Apitoria Pharma’s manufacturing unit in Telangana, received 10 observations from the US Food and Drug Administration (FDA). The observations came after the FDA conducted an inspection of the Telangana facility from September 23 to 27, focusing on Active Pharmaceutical Ingredient (API) production.

Ola Electric is also in the spotlight. On September 30, its shares dropped by over 4%, taking the stock below the ₹100 mark for the first time since its listing. Ola Electric’s stock has been in a downward trend, declining in 12 of the last 14 sessions. To counter this, the company has introduced a ‘network partner program’ to enhance electric vehicle (EV) adoption in tier-2 and tier-3 cities.

Paras Defence Secures Major Order

On September 30, Paras Defence and Space Technologies secured a significant order valued at ₹2.9 billion through its subsidiary, Controp-Paras Technologies. This order is part of an earlier contract awarded to Controp-Paras by Larsen & Toubro (L&T). L&T’s original contract was worth ₹3.1 billion for the production of 244 units of the Sight-25HD EO system. The contract also includes extended warranty charges and integrated logistics support (ILS) for L&T’s Close-In Weapon System (CIWS) program. The order is expected to be fulfilled over the next 47 months.

The recent decline In Paras Defence’s stock price has been attributed to profit booking in the defence sector, as concerns over inflated valuations and slow growth multiples have weighed on investor sentiment. Paras Defence is a prominent player in advanced technologies for rockets, missiles, naval systems, and space research, with expertise in areas such as drones, electronic warfare, and quantum communication.

NBCC Bags New Contracts

NBCC (India) Ltd. Announced on September 30 that it had won an order worth approximately ₹1 billion from the National Highways Authority of India (NHAI). The contract involves project management consultancy (PMC) services for constructing a permanent office building for NHAI’s regional offices and project implementation units.

The stock of NBCC has delivered strong returns this year, surging 120% year-to-date, with a 14% increase over the last three months. In addition, its subsidiary, HSCC (India) Ltd., secured a ₹12.6 billion order from the Ministry of Health and Family Welfare to establish an AIIMS in Darbhanga, Bihar.

Earlier, NBCC’s board had approved the issuance of bonus shares in a 1:2 ratio, meaning shareholders would receive one bonus share for every two held. The record date for this has been set for October 7, with the bonus shares to be credited by October 31, 2024.

Indian Oil Withdraws Rights Issue Plan

Indian Oil Corporation (IOC) has announced the withdrawal of its proposed rights issue of up to ₹220 billion. The company’s board had approved the plan in July 2023, subject to regulatory approvals. However, the Ministry of Petroleum and Natural Gas did not allocate any funds for capital support to Oil Marketing Companies (OMCs) in the Union Budget for 2024-25. This decision follows the earlier move by Bharat Petroleum Corporation Ltd. (BPCL), which had also approved a ₹180 billion rights issue in June 2023.

As of the June quarter, the Indian government held a 51.5% stake in Indian Oil Corporation.

With major market developments and company-specific news influencing investor sentiment, today’s market session is expected to be cautious as investors navigate these evolving trends.