D-Street wrap up for week to Nov 8- Nifty sheds 0.64% in an eventful week; IT stocks most resilient

In an eventful week, with some of the most watched out for events including the historic US Presidential elections, FOMC November meeting and expectations around China stimulus among othes now fairly clearly and behind us, Indian headline indices ended lower. For the week to November 8, Sensex ended with a cut of 0.3 per cent at 79,486.32, while the Nifty was dragged lower by 0.64 per cent to 24,148.2 levels.

Within the broder market, the Smallcap index faced a wrath with a cut of 1.86 per cent, while the Midcap index fell nearly 0.25 per cent.

Vinod Nair, Head of Research, Geojit Financial Services remarked that Indian equities continued to face consolidation amid FII selling. This broad-based correction is particularly evident in sectors with excessive valuations, he added.

The sentiment has also taken a hit amid an anticipated slowdown in India's economy in Q1.

Conversely, the appealing valuations of other Asian peers and ongoing stimulus measures by China are also contributing to the underperformance of the national market. China has now announced a new debt refinancing plan with a raising of the debt ceiling by 6 trillion yuan from 29.52 trillion yuan aimed at easing the local government’s fiscal pressures, added Nair.

Nifty50 top losers and gainers

During the week under review, M&M topped with gains of nearly 6 per cent, followed by Apollo Hodpitals, Tech Mahindra, HCL Technologies and TCS with each gaining between 4-5 per cent.

While, the laggards from the bluechip index were Trent that toppled 12 per cent in the week to its earnings, followed by Coal India, Asian Paints, Hindalco, Grasim Industries and Hero MotoCorp that fell between 5- 7 per cent.

Sectoral top performers and laggards

On the sectoral basis, of the 13 major indices only the Nifty IT and Nifty PSU Bank advanced during the week with gains of as much as 4 per cent and 0.98 per cent, respectively. While laggards included indices like Realty, Energy and FMCG among others. Realty tumbled the most during the week by over 4 per cent, while the auto pack remained resilient and ended on a flat note.

Tailwinds to take note of 

The recent rebound in India's domestic manufacturing activity is a positive sign. This year government spending is expected to be back so there expectation of improved corporate earnings in H2FY25. The festive season in Q3 is likely to revive consumption, which should support market sentiment and will aid find a floor in the near future, added Nair.

On the global front, the conclusion of the US elections and a strong Republican majority have reduced political uncertainty, providing relief to global markets. The FED’s recent 25 bps interest rate cut, which was in line with expectations, also offers some support.

Markets next week to be guided by macro print, Q2 earnings, FII action and policies under Trump's leadership

For the upcoming week, key economic data points to watch include the Index of Industrial Production (IIP) and inflation. Consensus expects an increase in inflation in the short-term and an expansion in IIP. The market will continue to be influenced by Q2 earnings, Trumponomic policies, and actions by FIIs.