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Market Outlook: Indian markets witnessed a strong recovery on 15th October, with the Nifty 50 rising 1.66% to 22,997 and the Sensex gaining 2.11% to 74,316, marking the strongest single-day gain in four months. The rally was led by IT, private banks, auto and large-cap stocks, although market breadth remained weak with 1,342 advances against 2,218 declines on NSE. Overnight cues remain positive, with Gift Nifty up 118 points (+0.51%) at 23,106, while the S&P 500 and Dow Jones gained 0.33% and 1.08%, respectively, and Nasdaq 100 declined marginally by 0.05%. Nifty PCR improved to 1.18 from 0.75, with 22,500 as the key Put OI/support level and 23,000 as the immediate Call OI/resistance level, while India VIX declined 4.03% to 14.04.

FII & DII Activity: Foreign investors continued their selling streak, with FIIs remaining net sellers for the 15th consecutive session and selling Rs 5,285.4 crore on 15th October. FII purchases stood at Rs 12,735.6 crore against sales of Rs 18,021 crore. DIIs provided support with net buying of Rs 3,319.4 crore, buying Rs 19,438.7 crore against sales of Rs 16,119.3 crore. October FII outflows have now reached Rs 49,935 crore, making sustained foreign selling the key overhang for the domestic market despite continued DII support.

Sector Activity: Sectoral performance was broadly positive, led by Nifty Private Bank, which gained 1.89% on the back of ICICI Bank (+3.80%) and HDFC Bank (+2.27%), while Nifty IT rose 1.82%, driven by Tech Mahindra (+4.75%) and HCLTech (+2.49%). Nifty Auto gained 1.67%, led by Hero MotoCorp (+3.80%) and M&M (+2.43%), while Nifty Oil & Gas advanced 1.41%, supported by Hindustan Petroleum (+5.27%) and Reliance (+3.44%). On the downside, Nifty PSU Bank declined 1.55%, led by Canara Bank (-6.12%) and Bank of Maharashtra (-3.54%), while FMCG fell 1.06%, primarily due to Nestle India (-7.76%) and Varun Beverages (-3.03%).

Long, Short, Long Unwinding & Short Covering: Fresh long build-up was seen in Anand Rathi (+1.4%, OI +11.4%), HDFC AMC (+5.1%, OI +1.5%), Hindalco (+1.3%, OI +5.1%) and BPCL (+1.4%, OI +4.1%). Short build-up was observed in Persistent Systems (-1.0%, OI +24.4%), Yes Bank (-14.5%, OI +2.6%), Enrin (-6.5%, OI +13.6%), Nestle India (-7.8%, OI +11.6%) and CG Power (-5.3%, OI +11.1%). Long unwinding was seen in Radico Khaitan, Indian Bank, Marico, PNB Housing Finance and Dixon, while short covering emerged in Hindustan Petroleum, Ashok Leyland, Bajaj Holdings, L&T Finance and other stocks.

Top 5 News:

PFC–REC Merger: Power Finance Corporation received RBI’s no-objection certificate for the proposed merger of REC into PFC, subject to specified conditions. The approved scheme provides 88 PFC shares for every 100 REC shares and envisages a combined loan book exceeding Rs 11 lakh crore. Further shareholder, creditor and statutory approvals remain pending.
Persistent Systems–Nagarro Acquisition: Persistent Systems secured 94.04% of Nagarro’s share capital and voting rights, excluding treasury shares, as it progresses towards closing the acquisition. Shareholders have also approved an equity raise of up to US$450 million. Q2 FY27 revenue rose 30.3% YoY and 8.4% QoQ to Rs 4,663.9 crore, while operating PAT increased 5% YoY to Rs 495.2 crore.
Polycab India Q2 FY27: Revenue increased 53% YoY and 21% QoQ to Rs 9,898.9 crore, while PAT rose 43% YoY and 24% QoQ to Rs 990 crore. EBITDA grew 39% YoY to Rs 1,422.5 crore, with margin at 14.4%. Wires & cables revenue increased 47% YoY, FMEG revenue surged 124% YoY and FMEG EBIT margin reached a record 10.1%.
Mankind Pharma–ACTx Investment: Mankind Pharma agreed to invest €48 million in instalments for a 70% stake in Belgium-based Armed Cell Therapeutics, which is developing next-generation CAR-T therapies targeting non-Hodgkin lymphoma and small-cell lung cancer. Mankind has also approved an additional €45 million investment in its Netherlands subsidiary, increasing its aggregate investment limit to €50 million.
Bharat Dynamics Torpedo Order: Bharat Dynamics signed a contract worth approximately Rs 1,307 crore plus taxes with the Indian Navy for heavyweight Varunastra torpedoes. The order is to be executed within 42 months and covers indigenous ship-launched anti-submarine torpedoes developed by the Naval Science and Technological Laboratory.

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