Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.
In our latest episode of In The Money by Zerodha video series**,** we uncover one of the most fascinating and persistent market puzzles ever documented — the Overnight Anomaly, also known as the Overnight Drift Effect. First identified in the late 1970s by Ken French (of Fama-French fame), this anomaly challenges the Efficient Market Hypothesis (EMH) by revealing that most market gains occur outside trading hours, while intraday returns often drift lower.
In this episode, we explore this enduring overnight effect across markets — from the US to India — testing it on indices and stocks to understand why it persists and what it means for systematic traders.
Market Overview
Nifty opened with a gap-up of 72 points at 25,395, extending its winning streak on the back of positive global cues and continued sectoral momentum. The index maintained an upward trajectory through the morning session, steadily advancing past the 25,500 mark by midday, led by strong buying in FMCG, Realty, Financial, and auto stocks.
In the second half, Nifty sustained its bullish tone, touching an intraday high near 25,620, though some profit-booking emerged in the final hour. Despite minor volatility toward the close, the index ended firm at 25,585.30, up by 1.03%.
Market sentiment has once again turned optimistic regarding demand revival following the GST cuts, despite the cautious sentiment prevailing on the global trade front due to high tariffs from the U.S. As we advance, investors will closely track quarterly results, festival season sales, and management commentary on demand trends across various industries.
Broader Market Performance:
Broader markets had a strong session today. Of the 3,192 stocks traded on the NSE, 1,812 advanced, 1,280 declined, and 100 remained unchanged.
Sectoral Performance
The top-gaining sector for the day was Nifty FMCG, which rose by 2.02%, while Nifty PSU Bank was the only sector to end in the red, slipping 0.44%. Out of the 12 sectoral indices, 11 closed in the green and only 1 closed in the red, indicating broad-based buying across the market.
Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 20th October:
- The maximum Call Open Interest (OI) is observed at 26,000, followed by 25,800, indicating potential resistance at the 25,700 -25,800 levels.
- The maximum Put Open Interest (OI) is observed at 25,300, followed by 25,500, suggesting support at the 25,500 to 25,400 levels.
Note: OI is subject to multiple interpretations, but generally, an increase in Call OI indicates resistance in a falling market, and an increase in Put OI indicates support in a rising market.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard
What’s happening in India
Infosys reported a 13.2% year-on-year rise in net profit to ₹7,364 crore for Q2 FY26, supported by resilient margins and strong deal momentum. Revenue grew 8.6% to ₹44,490 crore, with constant currency growth of 2.9% year-on-year. The company also declared an interim dividend of ₹23 per share. Dive deeper
Eternal, the parent of Zomato, reported a 63% year-on-year decline in net profit to ₹65 crore for Q2 FY26. However, revenue from operations surged 183% to ₹13,590 crore, driven by strong growth across its food delivery and allied businesses. Dive deeper
Wipro reported a 1.15% year-on-year rise in net profit to ₹3,246 crore for Q2 FY26. Revenue from operations inched up 2% to ₹22,697 crore, reflecting modest growth in its IT services business. Dive deeper
Nestle India reported a 17.4% year-on-year decline in consolidated net profit to ₹743.17 crore for Q2 FY26. Revenue, however, rose 11% to ₹5,630.23 crore, supported by steady demand across key product categories. Dive deeper
SEBI passed an interim order against two CERC officials and others for insider trading in IEX shares linked to “market coupling” reforms. It directed 13 individuals to return ₹173 crore and barred them from market participation. Dive deeper
Air India is reportedly in advanced talks with Airbus and Boeing to acquire up to 300 new jets, including 80–100 wide-body aircraft, accelerating its fleet expansion under Tata’s turnaround plan. Dive deeper
Ola Electric shares hit a 5% upper circuit at ₹55.38 on Thursday, extending gains to 10.2% in two days. The rally came after the company announced Ola Shakti, a portable battery system marking its entry into the energy storage and clean energy space. Dive deeper
What’s happening globally
WTI crude rose toward $59 per barrel after U.S. President Donald Trump said Prime Minister Modi had pledged to halt Russian oil imports. Though India may not stop purchases immediately, the move eased supply glut concerns as Washington also urged China to cut imports. Dive deeper
TSMC posted a 39.1% year-on-year rise in Q3 net profit (NT$452.3 billion), setting a record as AI-driven semiconductor demand surged. Dive deeper
European stocks edged higher after a week of turbulence, buoyed by solid earnings from heavyweights such as Nestlé, ASML, and LVMH. The STOXX 600 index rose ~0.1%, with gains in food & beverage stocks helping offset weakness in travel and leisure. Dive deeper
Australian shares notched a record closing high after job data disappointed, unemployment rose to 4.5%, spurring speculation that the RBA will cut rates soon. Dive deeper
The UK’s real GDP grew 0.1% in August 2025, matching expectations and reversing July’s 0.1% decline. The recovery was led by a 0.4% rise in production output, driven by gains in manufacturing, utilities, and water supply sectors. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
RBI Governor Sanjay Malhotra on tariffs, Rupee, and emerging market economies at the International Monetary Fund’s (IMF) annual meeting
“While tariffs have an adverse impact, it is not a matter of huge concern.”
“We are living in times of unprecedented uncertainties on account of various reasons-including policy uncertainties. This has been challenging for the growth of the emerging market economy. It is a risk that all emerging marketing economies must take into account.”
“This is because of larger tariffs and capital outflows. An orderly movement of the rupee is a priority for India.” - Link
Have you checked out The Chatter?
Every week, we listen to the big Indian earnings calls—Reliance, HDFC Bank, and even smaller logistics firms—and copy the full transcripts. We then remove the fluff and keep only the sentences that could move a share price: a surprise price hike, a cut-back on factory spending, a warning about weak monsoon sales, or a hint from management on RBI liquidity. We add a quick, one-line explainer and a timestamp so you can trace the quote back to the call. The whole thing lands in your inbox as one sharp page of facts you can read in three minutes—no 40-page decks, no jargon, just the hard stuff that matters for your trades and your macro view.
Go check out The Chatter here.
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Calendars
In the coming days, we have the following quarterly results, significant events, and corporate actions:
That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!