The Nifty 50 index experienced a 2.8% decrease in October, marking its first negative October since 2018. This slump occurred as Foreign Portfolio Investors (FPIs) withdrew approximately $2.5 billion from Indian equities, leading to increased market volatility. The withdrawal escalated the two-month outflow beyond the $5 billion mark.
The downturn in the market has seen it stagnate around the 19,000 level, without surpassing the 19,250 point. Despite this, the Nifty 50's November futures saw an increase of 0.8%, while Nifty Bank's November futures witnessed a drop of 0.3% in the futures and options market. The Put-Call Ratio also fell from 1.09 to 0.91.
Companies such as Larsen & Toubro, Bharti Airtel, and Tata Consumer Products are expected to influence market trends. Larsen & Toubro anticipates exceeding its financial year 2024 order inflow guidance by 10-12%. Bharti Airtel reported a net profit decline of 31.8% but a year-on-year increase in India revenue by 10.9%. Tata Consumer Products revealed a net profit of ₹359 crore (INR100 crore = approx. USD12 million).
Globally, Asian markets opened higher with Japan's Nikkei 225 and Topix both rising by about 2%, and South Korea's Kospi increasing by 0.8%. US indices like the Dow Jones and S&P 500 gained by 0.4% and 0.65%, respectively, while Nasdaq rose by 0.5%. However, these gains marked their third consecutive monthly loss.
Investors around the globe are awaiting a crucial interest rate decision by the US Federal Reserve. This anticipation has kept the market stagnant for three consecutive days and is expected to impact Wednesday's trading session stocks.
Several companies including Britannia and Hero MotoCorp, along with Sun Pharma and Tata Steel, are set to release their mid-week trading results. The market is also poised to react to strong earnings from these companies, adding to the elements influencing the market's performance.
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