Market Summary
- Sensex: 80,220.72 ▼ 1.15%
- Nifty: 24,472.10 ▼ 1.25%
Nifty 50 Performance
Nifty fell by 309 points, closing at 24,472.10. This marks one of the approximately 90 times in the last five years that Nifty has fallen between 1% and 2% in a single day.
- Markets opened higher than the previous close but began to decline at around 10:12 AM, with the fall continuing throughout the day.
- Realty and metal sectors were the biggest losers, with all sectors ending in the red.
- Only one Nifty 50 stock managed to close in positive territory today.
Top Gainers – Nifty 50
- ICICI Bank: Rs 1,267.50 ▲ 0.67%
Top Losers – Nifty 50
- Adani Enterprises: Rs 2,823.80 ▼ 3.88%
- Bharat Electronics: Rs 271.65 ▼ 3.77%
- M&M: Rs 2,887.20 ▼ 3.70%
- Coal India: Rs 468.35 ▼ 3.51%
- Tata Steel: Rs 150.39 ▼ 2.99%
Global Markets Overview
- US Markets: Flat
- European Markets: Down
- Asian Markets: Mixed
News & Updates
- Retail Sales: India’s retail sales in September saw a 5% year-on-year increase. The highest growth was in food and grocery sales, up by 12%, followed by jewellery (+8%), consumer durables & electronics (+6%), QSR, and apparel (+5%), as per an RAI survey.
- Hyundai Motor India IPO: Listed at 1.33% below its issue price.
- Waaree Energies IPO: Subscribed 8.81 times, with retail subscription at 6.39 times. The IPO closes tomorrow, 23 October.
- Deepak Builders & Engineers IPO: Subscribed 12.04 times, with retail participation at 16 times. Open until 23 October.
Stock Updates
- Ambuja Cements: To acquire a 46.80% stake in Orient Cement for ₹8,100 crore.
- Bajaj Finance: Q2 net profit rose 12.64% YoY to ₹4,000 crore.
- Power Grid: Approved raising up to ₹5,000 crore via private placement; won a project to develop a 6 GW power transmission system across Rajasthan and Haryana.
- Adani Green Energy: Q2 net profit fell 25.81% YoY to ₹276 crore.
- Zomato: Q2 net profit surged 389% YoY to ₹176 crore. The company approved raising ₹8,500 crore via Qualified Institutional Placement (QIP).
- Varun Beverages: Q2 net profit rose 23.66% YoY to ₹619.61 crore.
- RVNL: Formed a new subsidiary, ‘Rail Vikas Nigam Ltd (One Partner)’, in Saudi Arabia.
- Adani Energy Solutions: Q2 net profit jumped 144.66% YoY to ₹674.96 crore.
- Mazagon Dock: Approved an interim dividend of ₹23.19 per share (record date: 30 October) and a 1:2 stock split.
- Persistent Systems: Q2 net profit rose 23.45% YoY to ₹435 crore.
- One97 (Paytm): Reported a net profit of ₹928.30 crore, supported by a one-time income from the sale of its ticketing platform to Zomato.
Word of the Day: Sunk Cost Fallacy
The sunk cost fallacy occurs when individuals or companies continue with a decision because of the resources already invested, even when it’s no longer beneficial.
- Example 1: Holding onto a falling stock because of the initial investment, which may lead to further losses.
- Example 2: Sitting through a movie you don’t enjoy simply because you’ve already paid for the ticket.
6-Day Stock Exchange Course: Day 1
The stock exchange is a marketplace where stocks are bought and sold. Historically, buyers and sellers met on the trading floor, but now this process happens electronically.
- Key Indian Exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Missed last week’s course? Download the PDF [here].
Featured Question
Q: “Investing in a lower NAV mutual fund gives more returns because we can buy more units. Is this true?”
A: No, this is a misconception. The NAV (Net Asset Value) reflects the total value of the fund’s assets. A lower NAV doesn’t guarantee higher returns, nor does a higher NAV mean the fund will not grow. The key factor is how well the fund’s assets are managed.
1-Day Change in Key Commodities & Indices
- 10g Gold: ₹78,210 ▼ 0.09%
- 1kg Silver: ₹98,220 ▲ 0.34%
- USD-INR: ₹84.07/USD ▼ 0.00%
- Dow Jones: 42,931.60 ▼ 0.80%
- Nasdaq: 18,540.01 ▲ 0.27%
Long-Term Market Returns (Past 20 Years)
- Sensex: ▲ 14.19% p.a.
- Nifty: ▲ 14.00% p.a.
- Dow Jones: ▲ 7.63% p.a.
- Nasdaq: ▲ 11.91% p.a.
Note: Returns for Sensex and Nifty are in INR, while those for Dow Jones and Nasdaq are in USD. These returns are not directly comparable.