"Market Update: Gift Nifty Slips, Rupee Hits Record Low, Reliance Jio IPO News & Top Buzzing Stocks"

Indian Markets Struggle as Global and Domestic Pressures Persist

The Indian stock markets started the week under pressure, continuing a downtrend that has seen both the BSE Sensex and NSE Nifty 50 indices fall. The broader markets also reflected this sentiment, with small and mid-cap stocks registering notable declines.

On Tuesday, the BSE Sensex fell by 942 points, or about 1.2%, closing the trading session at a considerable loss. Simultaneously, the NSE Nifty shed 314 points, reflecting a 1.3% drop. This decline in the benchmark indices highlights ongoing caution among investors, who have been navigating both international and domestic headwinds.

Key Gainers and Losers

The session saw mixed performance among individual stocks. Mahindra & Mahindra (M&M), Cipla, and the State Bank of India (SBI) emerged as top gainers. Notably, M&M’s performance is supported by robust sales in its automotive segment, giving a substantial boost to its share price. On the other end, Bajaj Auto, Adani Ports, and Bharat Petroleum Corporation Limited (BPCL) faced significant declines, with each of these stocks contributing to the overall market drop.

The broader market indices were also impacted, with the BSE Mid Cap index closing 1.3% lower and the BSE Small Cap index falling by 1.6%. Among sectoral indices, stocks in the real estate, power, and telecom sectors faced the most selling pressure, reflecting the broader sentiment of uncertainty.

Gold Prices and Gift Nifty Update

In line with the stock market’s weak performance, gold prices also saw a dip. At the close of Indian markets on Monday, gold futures on the MCX were down 0.5%, with the precious metal trading at Rs 78,510 per 10 grams.

Meanwhile, the Gift Nifty index also showed signs of weakness, trading 18 points lower at 24,103 as of 7:30 AM. This muted movement in Gift Nifty suggests a subdued start for Indian markets, reflecting an overall cautious mood among investors as the new trading session begins.

Stocks to Watch: M&M and Exide Industries

Two stocks capturing investor attention include Mahindra & Mahindra and Exide Industries. M&M’s stock surged by over 5% on 4 November following a remarkable 25% year-on-year growth in SUV sales, marking an all-time high of 54,504 units sold in October. By early afternoon trading, M&M shares were up nearly 3%, reaching Rs 2,894, and became the top gainer on the Nifty index.

Conversely, Exide Industries saw its share price dip after it reported second-quarter results that fell short of expectations. Despite stable demand for battery replacements, weak demand from automotive manufacturers weighed on Exide’s performance. Following the announcement, Exide’s shares fell by up to 4.6%, reaching their lowest point since June at Rs 437.8 per share.

Rupee at a Record Low Against the Dollar

The Indian rupee has hit its lowest point ever against the US dollar, reaching 84.11 on Monday. This depreciation is largely driven by persistent foreign outflows from Indian stocks, as global investors remain cautious. Many of India’s Asian peers have benefited from a weakened dollar, but the rupee’s performance reflects a unique set of challenges, compounded by foreign selling in Indian equities and government bonds.

The Reserve bank of India (RBI) has been actively intervening to stabilize the currency, yet continued selling by foreign investors has added pressure. In October alone, foreign investors sold over US$11 billion worth of Indian equities, underscoring a trend that has kept the rupee on a steady downward trajectory.

Cipla’s Goa Facility Receives US FDA Approval

Cipla’s Goa facility, which is set to manufacture a key oncology drug, Abraxane, has received crucial regulatory approval after months of delay. Earlier this year, the US Food and Drug Administration (FDA) had flagged six observations, delaying Cipla’s launch plans for Abraxane. Following a successful inspection from June 10-21, 2024, the facility now has the green light to proceed. This development is a significant step for Cipla’s portfolio in oncology, addressing a key demand in the market.

Reliance Jio IPO Update

Reliance Industries is gearing up to launch the much-anticipated IPO of its telecom arm, Reliance Jio, with plans targeting a 2025 listing on the Mumbai stock exchange. Analysts have valued Reliance Jio at over US$100 billion, and the IPO is expected to be one of India’s largest in recent years.

Reliance Jio, led by billionaire Mukesh Ambani, is well-positioned in India’s telecom market with over 479 million subscribers. In recent years, Reliance has raised approximately US$25 billion for its digital and retail businesses through major investments from firms like KKR, General Atlantic, and the Abu Dhabi Investment Authority. The company believes its telecom business is now ready for public listing given its robust subscriber base and revenue streams.

While Reliance Jio is moving toward a 2025 IPO, Reliance’s retail business listing is expected to be delayed as the company addresses internal operational challenges. Furthermore, Jio’s competition is expected to intensify as it prepares to contend with global players like Elon Musk’s Starlink if it enters the Indian market. Notably, Jio’s collaborations with technology giants such as Google and Meta and its partnership with Nvidia for AI infrastructure development signify the company’s commitment to expanding its technology capabilities.

In conclusion, The Indian financial landscape continues to reflect a blend of opportunities and challenges. The start of this week saw the BSE Sensex and NSE Nifty fall under mounting pressures, while the rupee hit a historic low against the dollar. On the corporate front, M&M stood out with record-breaking SUV sales, and Cipla advanced its oncology pipeline with an FDA-approved facility. Investors are also closely monitoring Reliance Jio’s potential IPO, expected to reshape the Indian telecom market.

As the year progresses, these dynamics ranging from currency challenges to transformative IPOs will play a critical role in shaping India’s financial and economic outlook.