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Published: October 25, 2024
Updated: October 25, 2024

Weekly Market Wrap-Up: Record Gold Prices, Massive FII Sell-Off, and Earnings Reports Define the Week

This week saw major shifts across Indian markets, with record highs in gold prices and a historic sell-off by foreign institutional investors (FII). Domestic investors stepped in to mitigate losses, while the aviation sector faced unexpected costs, and earnings season put top companies in the spotlight.

Gold Prices Reach All-Time High

Gold prices surged to record levels this week, driven largely by strong festive demand. Investors turned to the precious metal as a safe-haven asset, marking a peak that underscored gold’s enduring appeal amid market uncertainties.

Historic FII Sell-Off Amid Slowing Economy

Foreign investors offloaded over Rs 1 lakh crore in Indian equities, marking one of the largest sell-offs in recent times. This comes after 11 months of gains in the Indian stock market. Analysts attribute the sell-off to concerns over the Indian economy's slowdown, mixed global conditions, and high valuations. Goldman Sachs downgraded Indian stocks within its Asia and emerging market portfolio, moving from an "overweight" to a "neutral" stance based on these factors. Meanwhile, domestic investors continued to buy, helping stabilize the market despite the FII exodus.

Aviation Sector Faces Costly Hoax Threats

The aviation sector faced an estimated Rs 500 crore in losses due to a series of hoax bomb threats, impacting airlines across the board. The financial hit underscored the high cost of security measures and the challenges airlines face from unexpected disruptions.

Mixed Earnings Reports for Major Companies

Top companies like ITC Ltd., Hindustan Unilever Ltd., and Zomato Ltd. released their quarterly earnings, offering a mixed view of the current economic environment. While some companies reported growth, others highlighted ongoing challenges, signaling that businesses are navigating through a period of economic volatility and market fluctuations. This week’s market events highlight the dynamic and challenging landscape facing Indian businesses and investors. As FIIs pull back and domestic players step in, and with commodity prices fluctuating, investors and market participants continue to adapt to rapidly shifting conditions.