Stock market today: Nifty 50, Sensex make smart turnaround, rise for 2nd day on gains in banking stocks

The Indian front-line indices staged a significant rebound during the second half of the trading session on Tuesday, October 29, recovering from an initial downturn that saw them tumble sharply in the first half of the day.

This recovery was primarily driven by strong performances from heavyweights such as Reliance Industries, HDFC Bank ICICI Bank and State Bank of India, enabling the markets to remain in positive territory for the second consecutive day.

Consequently, the Nifty 50 ended the session with a 0.52% jump at 24,466, while the Sensex ended the trade with a gain of 0.45% at 80,368. Meanwhile, both mid- and small-cap indices also experienced a strong rebound, with the Nifty Midcap 100 gaining 1% and the Nifty Smallcap 100 rallying 0.85%.

Looking at the individual stocks, 31 constituents of the Nifty 50 index closed in positive territory, with the State Bank of India leading the way, gaining 5.3%. Following closely were Bharat Electronics, Eicher Motors, SBI Life Insurance, Bajaj Auto, HDFC Life Insurance, and eight other stocks, each recording gains of over 1.5%.

On the losing side, Maruti Suzuki India slumped 4.2%, while Tata Motors dropped 3.9%, and Hero MotoCorp slumped 2.9%, Other stocks, including Dr Reddy's Laboratories, Sun Pharmaceutical, Cipla, Bajaj Auto, IndusInd Bank, and five more, ended the session with losses exceeding 1%.

Sectoral Performance: Auto pack tumbles, PSU banks extend gains

In today’s session, auto stocks experienced a sharp decline, leading the Nifty Auto index to drop by 375 points, or 1.60% to settle at 23,588. This downturn was primarily influenced by Maruti Suzuki, the country’s largest car manufacturer, whose September quarter results were below market expectations and negatively impacted overall sentiment within the auto sector.

Concerns are also rising that sales during the upcoming Diwali season may not meet projections, as urban consumers seem to be holding back on purchases. Of the 15 constituents in the Nifty Auto index, 10 closed in the red, with Maruti Suzuki and Tata Motors among the top losers, each experiencing declines of up to 4%.

Maruti reported a net profit of ₹3,069 crore for the second quarter of FY25, reflecting a year-on-year (YoY) decrease of 17.4%. Meanwhile, revenue from operations in the same quarter saw a marginal increase of 0.4%, rising to ₹37,202.8 crore from ₹37,062.1 crore YoY.

Other sectoral indices, including Nifty Pharma, Nifty IT, and Nifty FMCG ended with losses of up to 1.2%.

On the positive side, PSU banks extended their winning streak, buoyed by strong results from Canara Bank. This led the Nifty PSU Bank index to gain another 3.7% during the trading session, extending its rally for the second day. 

Canara Bank reported an 11.32% YoY increase in standalone net profit, reaching ₹4,014 crore in Q2FY25. On the asset quality front, its Gross Non-Performing Asset (GNPA) ratio improved by 103 basis points during the quarter to 3.73%, while the net NPA ratio fell to 0.99%, improving by 42 basis points from 1.41% in the September 2023 quarter.

Gainers & Losers: Syrma SGS Technology and Gillette India surge; Firstsource Solutions slides

Among the Nifty 500 stocks, Syrma SGS Technology led the rally with an impressive 15% gain, reaching ₹492 per share, following a 14% rise in the previous trading session. This surge came after the company reported stellar numbers for the quarter ending in September.

Gillette India also saw a positive reaction to its Q2 FY25 results, with the stock closing today's session up by 10.4% at ₹9,399 per share. Additionally, shares of JSW Infrastructure jumped 10% after reporting strong figures for the September quarter.

Other notable performers included Sumitomo Chemical India, Federal Bank, Home First Finance Company, Macrotech Developers, Indian Bank, Dixon Technologies (India), and JSW Energy, along with 58 other stocks in the index that ended Tuesday's session with gains exceeding 3%.

On the downside, Firstsource Solutions shares tumbled 7.9% after a significant 12% rally in the previous trading session. Similarly, Sapphire Foods India experienced a decline of 5% following the release of weak Q2 FY25 numbers.

Overall, 81 constituents of the index ended the trading day in the red with losses of up to 1%.

Precious Metals: Gold, Silver extends rally

Gold and silver prices extended their rally to the third straight session on Tuesday, supported by uncertainty surrounding the upcoming U.S. presidential election, while investors awaited data for clues on the Federal Reserve's interest rate trajectory.

On the Multi Commodity Exchange, gold contracts for December delivery jumped ₹322, or 0.41% to ₹78,888 per 10 grams, while the silver contracts for December delivery jumped ₹1,038 or 1% to ₹98,460 per kg.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.