Market Watch: Gift Nifty Slumps, Auto Stocks Tumble, and PG Electroplast Eyes Fundraising - Top Buzzing Stocks Today

Indian equity markets experienced a gradual decline through the trading session on Thursday, ending the day on a weak note. The downward momentum was primarily driven by the expiration of Nifty50 contracts, echoing the performance of Asian markets. The BSE Sensex closed down by 152 points, representing a 0.2% decline, while the NSE Nifty dropped by 70 points, or 0.3%. The expiry weighed heavily on market sentiment, leading to a negative close for the benchmark indices.

Notably, Infosys, L&T, and SBI emerged as top gainers, cushioning some of the downward pressure on the indices. In contrast, major names like Bajaj Auto, Nestle India, and Mahindra & Mahindra (M&M) were among the biggest losers, pulling down market sentiment further.

Broader markets also mirrored this weakness. The BSE Mid Cap index witnessed a steep 1.7% decline, while the BSE Small Cap index closed 1.4% lower. This suggests that the negative sentiment was not confined to large-cap stocks but was felt across the board.

Sectorally, the performance was mixed. IT and media stocks provided some support to the indices, but other sectors, particularly metals, autos, and power, faced significant selling pressure. Auto stocks were hit especially hard, with investors reacting negatively to the forecasts by leading manufacturers.

Gold Prices Edge Higher Amid Market Turbulence

Amid the weakness in equities, gold prices saw a modest increase, reflecting its status as a safe-haven asset during times of uncertainty. On the Multi Commodity Exchange (MCX), gold for the latest contract was trading 0.2% higher at ₹76,789 per 10 grams by the close of market hours on Thursday. This rise in gold prices highlights the increased demand for risk-averse assets as market volatility continues.

Gift Nifty Predicts Weak Opening for Indian Markets

Heading into Friday’s session, the Gift Nifty is already indicating a negative start for Indian markets. As of 7:55 AM today, the Gift Nifty was down by 140 points, trading at 24,720 levels. This follows the weak closing seen in the broader Indian markets, and it suggests that the trend is likely to continue as investors brace for further declines. Global sentiment and local factors, such as corporate earnings and sectoral issues, will likely continue to weigh on the markets in the near term.

Top Buzzing Stocks to Watch Today

Among the buzzing stocks for today, Nestle India is expected to be in focus. The stock saw a steep decline of 3.9% on Thursday, hitting an intraday low of ₹2,365 per share on the NSE. This followed the company’s Q2 results, which showed a marginal fall in net profit. Nestle reported a 0.9% drop in profit to ₹8.9 billion for the quarter ended September 2024, citing high commodity prices and softer consumer demand for some key brands.

On the flip side, Nalco shares performed well, rising by nearly 5% in early trade. This was supported by strong quarterly results from global aluminum major Alcoa Corporation and robust alumina prices. Lower raw material costs also helped boost sentiment toward aluminum stocks, aiding Nalco’s performance.

IRCTC Shares Drop on Reduced Reservation Period

In the railway sector, IRCTC shares took a hit following an announcement from Indian Railways. The company revealed a decision to cut the advance reservation period for train bookings from 120 days to 60 days, effective from November 1. The change is expected to negatively impact IRCTC, which generates a significant portion of its revenue from online bookings. The stock has reacted negatively to this news, as investors weigh the potential impact on the company’s revenue stream.

Life Insurance Corporation of India (LIC), which recently increased its stake in IRCTC to 9.3%, remains a key shareholder, and it will be interesting to see how this change in booking policy affects future performance.

PG Electroplast to Consider Fundraising Proposal

PG Electroplast was another top performer in Thursday’s trade, with the stock rising by 4.7%. The company’s shares reached an intraday high of ₹619 per share on the BSE. This surge came after PG Electroplast announced that its board would meet on Saturday, October 19, to consider a proposal for raising funds. The fundraising could be done through various instruments, including private placements, preferential issues, or rights issues.

PG Electroplast is a key player in the Indian manufacturing sector, specializing in plastic components and products for industries like automotive and consumer goods. The company’s fundraising efforts could further boost its expansion plans and support future growth initiatives. With a focus on sustainability and innovation, PG Electroplast has positioned itself as a leader in electroplating and plastic molding in India.

Auto Stocks Face Major Setback

Thursday proved to be a challenging day for auto stocks, with significant selling pressure across the sector. Bajaj Auto led the decline, with its stock falling sharply after the company issued a cautious forecast for festive season demand during its September quarter results. The company projected growth of only 3-5%, which fell well short of industry expectations of around 8%. This disappointment rippled through the market, dragging down other key players like Hero MotoCorp and TVS Motor.

As a result, the Nifty Auto index plunged by 3.5% during Thursday’s intraday trade, touching its lowest level since mid-August. The lackluster outlook for the festive season is a major concern for the auto industry, which is heavily dependent on consumer spending during this period. Bajaj Auto’s subdued forecast also casts a shadow over other automakers, contributing to the broader negative sentiment surrounding the sector.

In conclusion, The Indian stock markets are facing significant headwinds, with global cues, weak corporate earnings, and sectoral challenges all contributing to the downturn. As the market digests the latest developments, investors will be closely watching for further cues, especially in sectors like autos and manufacturing, where earnings and forecasts have been underwhelming.