Daily Market Update 27th October 2026 by Ventura Securities Ltd
Market Outlook:
Indian equities may witness a weak opening on 27th October, with Gift Nifty declining 0.52% to 22,655 despite a positive global setup. US markets closed higher on 26th October, with the S&P 500 rising 0.70%, Dow Jones 0.28% and Nasdaq 100 1.09%. Domestic markets, however, remain sensitive to elevated crude prices, foreign selling and the US Federal Reserve meeting. Nifty gained 0.68% to 22,753.20 on 26th October and breadth improved, with 2,062 advances against 1,525 declines on NSE. The immediate Nifty support levels are at 22,509 and 22,265, while resistance is placed at 22,875 and 22,997. The 27th October expiry, with maximum Put OI at 22,500 and Call OI at 23,000, is likely to keep volatility elevated.
FII & DII Activity: Foreign institutional investors resumed selling on 26th October, recording net outflows of Rs 1,462.5 crore, with purchases of rs 9,324.9 crore against sales of Rsc 10,787.4 crore. DIIs continued to provide strong support, recording net buying of Rs 2,609.6 crore through purchases of Rs 17,389.6 crore against sales of Rs 14,780.0 crore. October's cumulative FII selling has now reached approximately Rs 52,930 crore, highlighting persistent foreign-flow pressure despite continued domestic institutional absorption. The divergence between FII selling and DII buying remains an important factor for near-term market direction.
Sector Activity: Sector performance was broadly positive on 26th October, with 15 of 16 major sectors advancing. Nifty Metal was the strongest major sector, rising 2.21%, led by JSW Steel and National Aluminium, while Nifty Cement gained 1.93% and Nifty Healthcare advanced 1.77%, supported by Dr Reddy's and Laurus Labs. Nifty Smallcap 50 rose 1.60%, reflecting improved risk appetite across broader markets. Among other sectors, Nifty Energy gained 1.46%, Oil & Gas 1.35%, India Manufacturing 1.03% and IT 0.87%. Media declined 0.34% and Consumer Durables fell 0.21%, making them the only notable sectoral laggards.
Long, Short, Long Unwinding & Short Covering: Futures data indicates fresh long build-up in Radico Khaitan, Mankind Pharma, Biocon, Jubilant FoodWorks and Kotak Mahindra Bank, with both prices and open interest rising. Fresh short build-up was visible in Bank of India, AU Small Finance Bank, Supreme Industries, Tata Power and SBI Cards, where prices declined alongside higher open interest. Long unwinding was seen in Bajaj Holdings, Wipro, LTIMindtree, Amber Enterprises and Tata Consumer, indicating reduction in existing long positions. Short covering was observed in Ather Energy, Dr Reddy's Laboratories, Nykaa, Swiggy and Sagility, where prices advanced while open interest declined.
Top 5 News:
Tata Communications – Rs 400–450 Mn AI/Data Centre Investment: Tata Communications announced an investment of $400–450 million over three to five years to build approximately 10,000 km of fibre infrastructure connecting India's AI and data-centre hubs. The company is targeting a 30–40% share of the data-centre connectivity market, with the first phase connecting Mumbai, Pune, Hyderabad and Chennai.
Ather Energy – First Quarterly Profit: Ather Energy reported its first quarterly consolidated profit of Rs 1.26 crore compared with a Rs 154.07 crore loss in the year-ago period. Q2 FY27 revenue increased 63% YoY to Rs 1,464.24 crore. The company also approved approximately Rs 122 crore of manufacturing expansion, taking Hosur capacity to 4.95 lakh vehicles annually by December 2026 and Factory 3.0 capacity to 6.5 lakh vehicles by Q2 FY28.
Bajel Projects – Rs 1,500 Cr Transmission Order: Bajel Projects secured its largest transmission order worth Rs 1,500 crore, including GST, from Lakadia A Power Transmission for approximately 270 km of 765 kV double-circuit lines and substation works in Gujarat. The project has an execution period of 36 months. Separately, Tata Power awarded the company approximately Rs 200 crore for 400 kV GIS substations at Dharavi and Ghatkopar.
Paytm – Strong Q2 FY27 Operating Performance: Paytm reported Q2 FY27 revenue growth of 28% YoY and 8% QoQ to Rs 2,648 crore, while EBITDA increased 90% YoY to Rs 270 crore, taking the EBITDA margin to 10% from 7% a year earlier. PAT stood at Rs 225 crore, while financial-services distribution revenue grew 49% to Rs 912 crore and payment-services revenue increased 25% to Rs1,434 crore.
E2E Networks – AI Capacity Expansion: E2E Networks proposed adding approximately 5.4 MW of infrastructure capacity for NVIDIA HGX B300 systems and other Blackwell GPUs. The expansion would increase total capacity from 9.2 MW to 14.6 MW, representing an approximately 59% increase. Funding is planned through internal accruals and debt, although the company has not yet announced a fixed investment amount or completion date.
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