Monthly Archives: October 2024

Valuations across several automobile names have run ahead of themselves, according to Vijay Bharadia, Managing Partner & CIO at Wallfort PMS — but he sees the sector’s growth story as far from over, given how low India’s per-capita car ownership still is compared with other markets.

On electric vehicles, Bharadia expects the shift to stay gradual: charging infrastructure hasn’t scaled yet, so internal-combustion-engine demand should hold up for several more years, until EV infrastructure matures or battery-storage technology takes a meaningful step forward.

Waaree Energies, one of India’s larger solar photovoltaic-module manufacturers, listed on October 28 after an IPO that closed more than 76 times subscribed — a strong signal of institutional appetite. The issue was priced between ₹1,427 and ₹1,503 a share and drew ₹1,277 crore from anchor investors ahead of opening.

Market analysts leaned bullish into listing day: several pointed to premium estimates approaching or exceeding the IPO price itself, citing Waaree’s scale — an aggregate installed capacity of roughly 12 GW — and its position in the solar manufacturing sector as reasons for the enthusiasm around the debut.

The Nifty 50 stayed under selling pressure through the week, hitting the first downside target of a Head-and-Shoulders pattern near the 24,200–24,250 zone, with a bearish daily candle forming on above-average volume. On that reading, the index could test its August low of 23,894, a level watched closely as near-term support; a break below opens the door toward the 200-day EMA around 23,455. Any bounce toward 25,600–25,700 is seen as unlikely to hold. Bank Nifty’s picture is similar — support sits near 50,200–50,000, with the 200-day EMA (49,668) the next level below that, while 51,100 caps the upside.

The index closed the week down 219 points at 24,181, and Bank Nifty fell 744 points to 50,787, with market breadth firmly favouring declining stocks — roughly 2,138 losers against 376 gainers on the NSE.