Makemyinvest Tradesting Newsletter
Weekly Learning & Market Insights – Issue #026
​31 Oct 2026

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Direction • Decision • Discipline

Sector Spotlight

The Week That Moved Markets

1. Asian Paints​
Reported Q2 FY27 consolidated revenue growth of 16.9% year on year and profit growth of 7.5%. The company declared an interim dividend of ₹5.75 per share and highlighted raw-material inflation as a margin pressure.

2. Adani Enterprises​
Q2 FY27 total income rose 74% year on year to ₹38,023 crore, while EBITDA increased 62% to ₹6,316 crore. The figures reflect strong operating growth across its diversified businesses.

3. Bank of Baroda​
Reported standalone Q2 net profit of ₹6,532 crore, up 35.8% year on year. The increase was partly supported by a one-time gain from the sale of part of its stake in the National Stock Exchange.

4. Reliance Industries​
Reported record Q2 FY27 consolidated revenue of ₹3.62 lakh crore, up 27.8% year on year, and profit after tax of ₹29,550 crore, up 33.8%. Strong performance in Oil-to-Chemicals and Digital Services supported the results.

5. Bharat Electronics (BEL)​
Posted Q2 revenue growth of around 26.5% and net profit growth of nearly 20% year on year. Its order book stood at approximately ₹68,717 crore, providing visibility for future defence-electronics execution.

6. Indian Oil Corporation (IOC)​
Reported a sharp year-on-year increase in Q2 profit, supported by improved refining and marketing performance. The results are important for tracking oil-marketing margins amid volatile crude prices.

7. GAIL (India)​
Reported strong Q2 growth in revenue and profit, with higher gas volumes and operating performance supporting the improvement. The results bring attention to domestic gas demand and the impact of global gas prices.

8. Samvardhana Motherson International​
Reported Q2 net profit growth of approximately 35% year on year, while revenue increased nearly 47%. The performance reflects demand across its global automotive components business.

9. Varun Beverages​
Reported Q2 revenue growth of around 31% and profit growth of nearly 12% year on year, highlighting continued expansion in its beverage business.

10. Sun TV Network​
Reported a modest 2.8% year-on-year increase in Q2 net profit, while revenue and operating profit declined. The company declared an interim dividend of ₹3.75 per share.

🌍 Major Global Developments This Week

1. US Federal Reserve Holds Interest Rates​
The Fed kept its benchmark interest-rate range unchanged at 3.75%–4.00%. However, two members preferred a 0.25 percentage-point hike, highlighting divisions over persistent inflation risks.

2. Iran Conflict and Strait of Hormuz Disruptions​
Reports of tankers striking mines and catching fire in the Strait of Hormuz heightened concerns over the security of a critical global oil-shipping route. Any prolonged disruption could affect energy supplies and freight costs.

3. Saudi Arabia Faces Renewed Houthi Threats​
Intensified Houthi attacks on Saudi infrastructure and transport facilities added to regional instability. The developments kept concerns elevated around oil production, exports and shipping security.

4. Bank of Japan Keeps Rates Unchanged​
The Bank of Japan maintained its policy rate at 1.25% but revised its inflation outlook higher and signalled that further rate increases remain possible. The decision keeps attention on yen movements and global capital flows.

5. US Economic Data Keeps Inflation Concerns Alive​
US third-quarter GDP growth and inflation-related data remained important for interest-rate expectations. Stronger economic activity alongside persistent price pressures could influence the timing of future Fed policy changes.

🏛️ Economic & Policy Developments

1. US Federal Reserve Maintains Rates at 3.75%–4.00%​
The Fed held rates steady, citing resilient economic activity while acknowledging elevated inflation and uncertainty. The split vote, with two members favouring a hike, made the policy outlook more uncertain.

2. US Third-Quarter GDP Growth​
The US economy grew at an annualised rate of approximately 3.4% in Q3, indicating resilient economic activity. Strong growth alongside inflation concerns could influence expectations for future interest-rate decisions.

3. US Inflation Remains a Policy Concern​
September personal-consumption expenditure data showed continued price pressure, with core PCE inflation around 3.1% year on year. This remains above the Fed’s 2% target and complicates the case for monetary easing.

4. Japan Revises Inflation Outlook Higher​
The Bank of Japan raised its inflation forecast while keeping rates unchanged at 1.25%. The shift signals that policymakers remain alert to price pressures and may continue normalising monetary policy.

5. India Cabinet Approves Container Manufacturing Promotion Scheme​
The Union Cabinet approved a scheme to promote domestic container manufacturing. The initiative is aimed at strengthening local manufacturing capacity and supporting logistics and supply-chain infrastructure.

6. India Announces Rural Development and Sports Manufacturing Initiatives​
The Cabinet approved the Pradhan Mantri Viksit Gram Swaraj Yojana and a scheme to build a globally competitive sports-goods manufacturing ecosystem. These initiatives have implications for rural development, manufacturing and related supply chains.

🛢️ Commodities & Currency Developments

1. Crude Oil Remains Elevated on Geopolitical Risks​
Brent crude gained around 6% during the week and traded near $117 per barrel, as concerns over Middle East supply routes and shipping disruptions supported prices. Higher crude costs remain a concern for oil-importing economies such as India.

2. Natural Gas Prices Decline​
Domestic natural-gas futures weakened during the week, with the MCX contract down around 7.5% over five sessions through 29 October. The movement is relevant for gas distributors, fertiliser companies and energy-intensive industries.

3. Gold Extends Its Decline​
International gold prices fell around 3% during the week, moving below $3,900 per ounce. Stronger economic data and changing expectations around US interest rates weighed on the precious metal.

4. Silver Faces Further Selling Pressure​
Silver declined nearly 6% during the week, reflecting weakness across precious metals and concerns around industrial demand. Its dual role as an investment and industrial metal makes it sensitive to both interest rates and global growth expectations.

5. US Dollar Index Strengthens Slightly​
The Dollar Index rose around 0.2% during the week as the Fed's divided policy decision and geopolitical uncertainty supported demand for the US currency.

6. Indian Rupee Recovers Against the Dollar​
The rupee strengthened to around ₹94.93 per US dollar on Friday, supported by a softer dollar and stronger domestic equity markets. Elevated crude prices, however, remain an external pressure.

Why It Matters

• Corporate earnings are driving stock-specific action:Strong results from companies such as Reliance Industries and BEL highlight pockets of earnings strength, while mixed performances underline the importance of margins and management commentary.
• Central banks remain cautious:The Fed’s divided decision and the Bank of Japan’s higher inflation outlook keep global interest-rate expectations uncertain.
• Geopolitical risks are supporting crude prices:Middle East tensions and shipping disruptions could increase India’s import bill and put pressure on inflation-sensitive sectors.
• Precious metals are under pressure:Gold and silver weakness reflects changing rate expectations and shifts in global risk appetite.
• Indian equities show resilience:The Nifty gained around 2% during the week, supported by broad-based participation, although continued foreign investor outflows remain a factor to monitor.

Concept of the Week: Market Breadth

Definition

Market Breadth measures how many stocks are participating in a market's upward or downward movement.

Instead of looking only at NIFTY 50 or SENSEX, it examines the performance of individual stocks to understand whether the broader market is supporting the index movement.

In simple words:Market Breadth tells us whether a rally is being supported by many stocks or just a handful of heavyweight stocks.

How It Works

Some important Market Breadth indicators include:

• Advance-Decline Ratio:Compares the number of stocks advancing with those declining.
• Advance-Decline Line:Tracks the cumulative difference between advancing and declining stocks.
• New Highs vs New Lows:Compares stocks making fresh highs against those making fresh lows.
• % Stocks Above 200-DMA:Measures how many stocks are trading above their 200-day moving average.

Example: NIFTY 50

Suppose NIFTY rises by 1% in a trading session.

However, the market data shows:

Market Indicator

Observation

Advancing stocks

15

Declining stocks

33

Unchanged stocks

2

What does this indicate?

• NIFTY is moving upward.
• However, most constituent stocks are declining.
• The rally may be concentrated in a few heavyweight stocks.

This suggests relatively weak market participation.

Why It Matters

Market Breadth helps traders and investors:

• Evaluate the strength of a market rally.
• Identify potential market weakness.
• Detect divergences between index movement and broader participation.
• Avoid blindly following index movements.
• Understand whether bullish or bearish sentiment is widespread.

⚠️ Risk / Common Mistake

• Weak breadth does not guarantee an immediate market reversal.
• Index heavyweight stocks can legitimately outperform the broader market.
• Different breadth indicators may produce different signals.
• Always consider sector composition and market context.

Key Takeaway

A healthy market rally is generally supported by broader participation, not just a few heavyweight stocks.

Pro Tip

Monitor NIFTY 50 alongside NIFTY 500 market breadth.

If NIFTY is making higher highs but the Advance-Decline Line is making lower highs, pay attention. This negative divergence may indicate weakening participation and deserves closer observation.

Remember: The index tells you where the market is going. Market Breadth helps you understand how many stocks are participating in that journey.
​

Community Win

Wisdom of the Week

Learning Takeaway

• Market declines often create pressure to act quickly, even when nothing has fundamentally changed.
• Emotional decisions during volatility can turn temporary losses into permanent mistakes.
• Patience allows investors to evaluate opportunities without being controlled by fear.
• When the market turns volatile, slow down, reassess the fundamentals, and avoid confusing urgency with opportunity.

My Content of This Week

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​YouTube Video Link​

Book I Am Reading and Recommend

Keep Learning. Keep Tradesting!!! 🚀

Cheers,
​Tapas Chandra​
SEBI Registered Research Analyst | INH000026381
PGP (Research Analysis) | CMT Level 3
Author of Invest or Regret, The Power of Tradesting & The 3D Market Model | Ex-JPMorgan Chase

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