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• Equity benchmark indices came under pressure, with the Sensex tumbling over 500 points and the Nifty closing below the 22,400 mark, as persistent FII selling, domestic bond yields climbing to multi-year highs, and escalating geopolitical tensions in the Gulf region weighed on market sentiment. Investors also adopted a cautious approach ahead of the domestic inflation data scheduled for release today. The Nifty declined 157 points, or 0.7%, to close at 22,363, while the Sensex fell 547 points, or 0.7%, to settle at 71,924.

• The Bank Nifty slipped 1%, pressured by the surge in the 10-year G-Sec yield to a two-year high of 7.39%, following the RBI’s announcement of a CRR hike from 90% to 99% and indications of further rate hikes. The Nifty IT index also declined 1% due to profit booking. In contrast, the Nifty Auto index gained nearly 1%, led by Bajaj Auto, TVS Motor, and Tata Motors, on expectations of improved demand ahead of the festive season. The Nifty Smallcap index advanced 1%, supported by a rally in paper and sugar stocks. The Nifty 500 advance-decline ratio stood at 1.3:1, indicating relatively stronger buying interest in mid- and small-cap stocks.

• Among global markets, Asian equities traded mixed, while European markets advanced as Brent crude prices eased to around $104 per barrel. Expectations of increased Russian diesel supplies and a potential Russia-Ukraine energy ceasefire provided some relief, although supply risks arising from persistent Middle East tensions continued to remain a concern.

• On the domestic front, sugar stocks witnessed fresh buying interest amid rising global sugar prices. Balrampur Chini, Avadh Sugar, Bannari Amman Sugar, and Dalmia Bharat Sugar gained up to 10%. West Coast Paper surged 20%, hitting the upper circuit, alongside gains in other paper stocks, as rising product prices and expectations of improved realizations boosted investor sentiment.

Technical Outlook:

• Nifty index opened on a positive note but failed to sustain above 22650 zones with selling pressure emerging right from the first tick. Bears gained control and the index moved lower towards 22300 zones. It formed a bearish candle on the daily chart indicating selling pressure to continue at higher levels. Now till it holds below 22400 zones weakness could extend towards 22250 then 22100 levels while on the upside hurdles can be seen at 22500 then 22600 zones.

• S&P BSE Sensex index opened with a gap up of around 300 points near 72800 zones but failed to sustain at higher levels. Selling pressure was seen for most part of the day as the index gradually moved lower towards 71700 zones. It formed a bearish candle on the daily chart with its 10 DEMA acting as resistance and limiting the upside. Now till it holds below 72000 zones, weakness could be seen towards 71600 then 71300 zones while hurdles are seen at 72200 then 72500 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.94% at 22400 levels. Positive setup seen in Persistent, TCS, RBL Bank, Blue Star and ICICIGI while weakness seen in Amber, Dmart, Siemens, Jubilant Food, Oil, JSW Energy, MFSL, JSW Steel, Reliance, GAIL, Tube Investments, Godrej Consumer, Lodha, Swiggy and Biocon.

• On option front, Maximum Call OI is at 22600 then 22500 strike while Maximum Put OI is at 22300 then 22000 strike. Call writing is seen at 22400 then 22600 strike while Put writing is seen at 22300 then 22350 strike. Option data suggests a broader trading range in between 21900 to 22800 zones while an immediate range between 22100 to 22600 levels.

• Rajesh Power – company announced securing Rs 471.92 crore turnkey contracts (inclusive of taxes) from Madhya Gujarat Vij Company Limited (MGVCL) for strengthening electricity distribution infrastructure across Gujarat.

• Tata Sons In Early Talks With Banks For Potential Listing – Tata Sons is reportedly in early discussions with investment banks to explore initial steps for a potential public listing (as stated in the source alert; not independently verified). The move follows regulatory frameworks governing upper-layer core investment companies.- Media Report

• Puravankara Signs Joint Development Pact for Bengaluru Land – Company has signed a joint development agreement for a 12.76-acre land parcel in Sathanur in northern Bengaluru, with an estimated gross development value of Rs2500cr.

• Raymond To Add Brownfield Capacity In Andhra Pradesh – Raymond plans to set up additional brownfield capacity in Andhra Pradesh alongside its existing mega unit in the state. The company said its planned greenfield facility in Andhra Pradesh is progressing as scheduled.

• SIP Inflows Rise To Rs 32,490 Crore In September – Systematic investment plan inflows increased to Rs 32,490 crore in September from Rs 32,297 crore in August, according to AMFI data.

• Mutual Funds Record Rs 1.33 Lakh Crore Net Outflow In September – The mutual fund industry recorded net outflows of Rs 1.33 lakh crore in September against inflows of Rs 41,353 crore in August. Fixed-income schemes saw outflows of Rs 1.83 lakh crore. Industry assets under management fell to Rs 82.64 lakh crore from Rs 87.08 lakh crore in August. Gold ETF inflows rose to Rs 4,451 crore from Rs 2,597 crore.

• Tata Power – Company commissioned 419 MW of utility-scale projects in Q2FY27, representing over 130% year-on-year (YoY) growth compared to the 182 MW of utility-scale capacity executed during the corresponding quarter of the previous fiscal year.

• Swaraj Engines Q2 results – Net profit increased 21.9% from a year earlier to Rs 60.6 crore. Revenue rose 26% to Rs 635 crore, while EBITDA increased 27.2% to Rs 86.5 crore. The EBITDA margin stood at 13.6%, compared with 13.5% a year earlier.

Global Market Update

• Asian Market – Asian shares were mixed and the price of Brent crude steadied near $104 a barrel Monday as U.S. President Donald Trump’s plan to purchase diesel from Russia drew criticism from some lawmakers.

• European Market – European stocks rose on Monday with falling oil prices boosting sentiment before the third-quarter earnings season begins in earnest this week. UK, Germany and France Index gained 0.7% each.

• Commodity – Oil prices fell 1% to $104/bbl as traders weighed prospects for increased Russian diesel supplies and a potential Russia-Ukraine energy ceasefire against persistent Middle East supply risks.

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