Sensex and Nifty Close Lower After Volatile Trading Session

Indian equity markets ended the day lower on October 23, 2024, following a session marked by volatility. The BSE Sensex dropped by 138.74 points, or 0.17 per cent, closing at 80,081.98. Meanwhile, the NSE Nifty 50 fell 36.60 points, or 0.15 per cent, finishing at 24,435.50.

Market Performance

Bajaj Finance emerged as the top performer of the day, witnessing a significant increase of 4.90 per cent. Other notable gainers included Tech Mahindra with a rise of 2.14 per cent, Tata Consumer Products at 1.78 per cent, Bajaj Auto at 1.75 per cent, and HDFC Bank edging up by 1.26 per cent.

Conversely, the day's biggest losses were observed in Mahindra & Mahindra, which plunged 3.22 per cent, followed closely by Sun Pharma, down 2.69 per cent, Eicher Motors at a decrease of 2.07 per cent, Shriram Finance falling 1.86 per cent, and Power Grid slipping 1.84 per cent.

Broader Market Insights

The broader market showed stronger performance than the main indexes, with the Nifty Midcap 100 and Smallcap 100 indices up approximately 0.64 per cent and 1.25 per cent, respectively. The NIFTY NEXT 50 decreased by 0.38 per cent to 70,884.70, while the NIFTY MIDCAP SELECT index gained by 0.82 per cent, closing at 12,544.15.

The performance of Sensex stocks was led by Bajaj Finance, which rose by 4.95 per cent to ₹7,007.95. Tech Mahindra continued to perform well with a 2.28 per cent increase. Other gainers included HCL Tech at +1.29 per cent, TCS at +1.27 per cent, and HDFC Bank at +1.26 per cent. In contrast, the decline was headed by Mahindra & Mahindra at -3.23 per cent, followed by Sun Pharma (-2.79 per cent), Power Grid (-1.86 per cent), NTPC (-1.74 per cent), and Adani Ports (-1.68 per cent).

Overall Market Sentiment

Market breadth appeared optimistic with 2,187 stocks advancing against 1,743 that declined on the BSE. During the session, 122 stocks hit their 52-week highs, while 163 dipped to their 52-week lows. The trading session also saw 253 stocks reach upper circuit limits and 346 touch lower circuit limits.

Market analysts observed that investor sentiment was dampened due to disappointing earnings reports and foreign institutional investors' further selling activity. Vinod Nair, Head of Research at Geojit Financial Services, mentioned that while there was some bargain hunting in mid and small-cap stocks, the ongoing sustainability of these gains remained questionable.

Sectors and Indices

The performance across sectors was mixed. The IT index was notably the top performer, rallying by 2.5 per cent, whereas the Healthcare and Pharma sectors suffered losses exceeding 1.5 per cent. The NIFTY BANK index closed slightly lower at 51,239.00, down by 0.04 per cent, while NIFTY FINANCIAL SERVICES experienced a slight uptick of 0.22 per cent, closing at 23,752.00.

Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, pointed out the volatility shown in early trades, noting that while key indices regained some ground during the session, they ultimately ended lower due to weaknesses in several sectors including banking, power, oil & gas, and real estate. Nevertheless, gains in IT stocks played a key role in reducing overall losses.

Influences on Market Performance

The downward trend in the market was largely attributed to continued foreign investor outflows and disappointing quarterly earnings results. Ajit Mishra, SVP of Research at Religare Broking Ltd, explained that the combination of these foreign outflows and unsatisfactory earnings reports significantly impacted market sentiment.

FIIs/FPIs were significant net sellers today, with an outflow of ₹3,978.61 crore in the capital market, while domestic institutional investors (DIIs) were active buyers with a net inflow of ₹5,869.06 crore. Other participant categories noted net selling in clients of ₹299.25 crore and a small outflow from NRIs of ₹0.91 crore. Proprietary traders, however, indicated net buying behavior with an inflow of ₹115.27 crore.

Volatility Measures

The India VIX, a key gauge of market volatility, increased by 1.31 per cent, reaching 14.59, indicating rising market uncertainty. Additionally, the rise in the US 10-year yield suggested a cautious sentiment concerning potential rate cuts by the Federal Reserve, which might influence emerging markets negatively.

The market opened lower today, with the Sensex starting at 79,921.13 compared to its previous close of 80,220.72. The Nifty also began on a weaker note at 24,378.15 versus its last closing of 24,472.10. Although there were attempts to recover throughout the session, persistent selling pressure at higher levels thwarted any meaningful upward movement.

Sensex, Nifty, Stocks, Market, Performance