FII Sell-Off Hits Rs 1 Lakh Crore, Gold At Record High, Earnings Disappoint — The Week That Was
NDTV Profit, in its weekly news wrap every Friday, brings you the major events shaping businesses, industries, and global markets.
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The week saw sweeping changes across markets, marked by record-breaking moves in both equities and commodities, unexpected costs in aviation and the earnings season putting corporates in the spotlight.
Foreign investors triggered a historic Rs 1-lakh-crore sell-off, overshadowing an 11-month rally in Indian equities, while domestic investors cushioned losses.
The aviation sector faced substantial losses following a string of hoax bomb threats, leaving airlines with a Rs 500-crore bill. Meanwhile, gold prices hit an all-time high, with festive demand pushing prices up sharply.
Major companies, including ITC Ltd., Hindustan Unilever Ltd. and Zomato Ltd., reported quarterly earnings that captured the market's attention, revealing challenges and growth patterns amid mixed economic signals. NDTV Profit recaps the key highlights that influenced the business landscape this past week.
FII's Sell-Off
Foreign investors dumped Indian equities worth more than Rs 1 lakh crore in a historic selling binge, despite warnings from two leading brokerages, jeopardising the record 11-month rally.
Global funds have sold stocks worth over Rs 1 lakh crore in the past 19 consecutive sessions, according to provisional NSE data. The selling spree continues as the economy slows, China's regeneration measures, and valuation concerns continue to dampen investor mood.
Domestic institutions have continually bought on dips, accumulating stock worth Rs 1 lakh crore and, thereby, cushioning a huge loss.
Goldman Sachs "tactically" lowered domestic stocks to neutral from overweight within its Asia/emerging market allocation, citing slower economic growth and business earnings.
Hoax Bomb Threats Cause Airlines Loss Of Rs 500 Crore
The recent surge of hoax bomb threats led to airlines losing Rs 500 crore, according to NDTV, citing the Ministry of Civil Aviation officials.
So far, approximately 200 flights have received bomb threat calls, according to sources familiar with the situation. These hazards disturb the plane's schedule and, in certain situations, require flying diversions.
Civil Aviation Minister Ram Mohan Naidu told reporters a day earlier that eight planes had been diverted since the threats began to be sent to Indian carriers on Oct. 14.
In the event of a flight divert, the aircraft is relocated to the nearest airport rather than its scheduled destination. According to the sources, this results in increased fuel use, which raises airline costs.
Gold Hits Record High Of Rs 81,500
Gold and silver prices soared to new highs this week, fuelled mostly by robust demand during the ongoing festive and wedding seasons. Gold prices rose for the sixth straight session, reaching an all-time high of Rs 81,500 per 10 grammes, according to the All India Sarafa Association. Silver prices also rose significantly, climbing by Rs 1,000 to a record high of Rs 1.02 lakh per kilogramme.
As the festive season approaches, particularly with Dhanteras right around the horizon, gold and silver prices in India are fluctuating significantly. The India Bullion and Jewellers Association Ltd. said that gold was trading at Rs 78,060 per 10 grammes on Friday. This decline occurs as both metals have been hovering at all-time highs, fuelled by traditional demand during this auspicious buying season.
The Dhanteras festival kicks off Deepavali celebrations, and many people buy gold and silver as symbols of prosperity and good fortune. As a result, demand for these precious metals usually surges in the weeks preceding the event.
Currently, the price of silver has also seen a drop, trading at Rs 96,970 per kilogram. This marks a decrease of over Rs 3,000 from Tuesday's price of Rs 1,00,270.
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Big Earnings
ITC Ltd. operating margin fell to 32.8%, its lowest in nearly three years, missing analysts' estimates by 4 percentage points. Read more here.
Hindustan Unilever Ltd. saw a 2.3% year-on-year drop in second-quarter profit to Rs 2,595 crore, meeting analysts' expectations. Read more here.
Zomato Ltd. posted a 30% decline in net profit for the July-September period to Rs 176 crore, marking its sixth consecutive profitable quarter. Read more here.
Bajaj Finance Ltd. recorded a 13% year-on-year rise in profit to Rs 4,014 crore, with net interest income up 23%. Read more here.
UltraTech Cement Ltd. reported a profit of Rs 825 crore, down from Rs 1,280 crore a year ago, impacted by weaker cement pricing and demand. Read more here.
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