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The Sensex and Nifty ended in the red on October 23, pulling back after climbing nearly half a percent earlier in the session. Gains in IT stocks, led by strong earnings from Persistent Systems and Coforge, were offset by losses in the auto and construction sectors, which dragged the Nifty 50 into negative territory.
At close, the Sensex was down 138 points or 0.2 percent at 80,081, and the Nifty was down 37 points at 24,434. About 2,117 shares advanced, 1,647 shares declined, and 99 shares remained unchanged.
The benchmark's struggle to sustain its gains is rooted in a mix of global and domestic challenges. Ongoing geopolitical tensions in the Middle East, concerns over Foreign Institutional Investors (FIIs) pulling out funds due to China's stimulus measures, and jitters surrounding the upcoming US presidential election have all contributed to market anxiety. Domestically, Q2 earnings have also shown signs of a slowdown, adding to the pressure.
Goldman Sachs lowered Indian equities to 'Neutral' from 'Overweight' as the country's slowing economic growth weighs on corporate earnings, amid record foreign outflows from domestic markets.
Nifty IT bucked the broader market trend and climbed 2.5 percent driven by Persistent Systems and Coforge. Both stocks soared over 11 percent after delivering robust Q2 FY25 results.
After the recent decline, the midcap and smallcap space experienced bargain buying in today's session. The BSE Midcap index advanced 0.5 percent and the BSE Smallcap index rose 1 percent.
On the Nifty 50, Bajaj Finance, Tech Mahindra, Tata Consumer, Bajaj Auto, and Bajaj Finserv led the charge, gaining between 1-5 percent. In contrast, M&M, Sun Pharmaceutical, Eicher Motors, Shriram Finance, and Power Grid were the top losers, slipping 2-3 percent.
Bajaj Finance was in focus throughout the session, emerging as the top gainer on the Nifty 50. The stock surged 5 percent after the company announced a 13 percent year-on-year rise in consolidated net profit, reaching Rs 4,014 crore for Q2 FY25.
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The festive season of Diwali is here, eagerly awaited by investors and traders alike, as it is often viewed as an auspicious time for financial activities. Investors are also hyped for the Muhurat Trading session that falls on November 1, 2024. In the lead-up to Diwali, brokerage houses traditionally provide stock recommendations for the upcoming Samvat year. Investors use these to trade their favourite stocks and hoping for a favourable outcome.
Muhurat Trading is an auspicious and culturally significant session held yearly on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India, on the festival of Diwali.
The term 'muhurat' signifies an opportune moment to start new projects or make financial decisions, and this special trading session for equities, which lasts about one hour in the evening, marks the beginning of the traditional Hindu accounting year known as Samvat.
Why is Muhurat Trading Important?
Muhurat Trading is more than just a trading session; it embodies a blend of cultural significance and financial opportunity. Muhurat Trading represents a fresh start for investors, both spiritually and financially. As the Hindu community celebrates Diwali, a festival that symbolises the victory of light over darkness, investors engage in trading to welcome prosperity and success in the coming year. This tradition helps set a positive tone for the financial year ahead.
Additionally, traditional practices reflect cultural dynamics, with Gujarati merchants typically buying shares and Marwari traders selling, rooted in the belief that money should not be kept at home during the festival. This influx of activity can lead to favourable market conditions, benefiting those who trade during this period.
What traditions hold?
Prior to the commencement of the Muhurat Trading session, many brokers and traders participate in the Chopda Pujan ritual, where they worship their account books and trading tools. This ritual is essential for invoking blessings for a prosperous financial year.
The trading session itself operates like a standard market day. Investors can execute trades, buying and selling stocks as they normally would. However, the atmosphere is charged with a celebratory spirit. Many investors also perform Lakshmi Pujan, a sacred ritual dedicated to Goddess Lakshmi, the deity of wealth and prosperity. The session concludes with celebrations on the trading floors of major stock exchanges, further emphasising the festive mood.
Timings of the Session
This year, Muhurat Trading is scheduled for Friday, November 1, 2024. The timings are as follows:
Pre-Open: 5:45 PM to 6:00 PM
Normal Market: 6:00 PM to 7:00 PM
Closing Session: 7:10 PM to 7:20 PM
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