Equity benchmarks slipped into negative territory during Thursday afternoon trading, despite a flat opening following the Federal Reserve’s rate cut. The BSE Sensex fell 184.52 points or 0.23 per cent to 79,357.27, while the Nifty50 declined 75.30 points or 0.31 per cent to 24,124.05 as of 12.30 pm.

The market breadth remained negative, with 2,418 stocks declining, compared to 1,394 advances on the BSE. While 205 stocks hit their 52-week highs, 21 touched their 52-week lows. The broader market witnessed deeper cuts, with the Nifty Next 50 falling 0.91 per cent, and the Nifty Midcap Select dropping 0.62 per cent.

Information technology stocks emerged as the bright spot, with all major IT companies posting gains. Infosys led the gainers, rising 1.77 per cent, followed by Tech Mahindra at 1.75 per cent and Wipro at 1.70 per cent. Auto major Mahindra & Mahindra advanced 1.57 per cent, while metal producer Hindalco gained 1.33 per cent.

On the flip side, state-owned Coal India emerged as the biggest loser, falling 2.81 per cent. Retail chain Trent declined 2.25 per cent, followed by Asian Paints at 2.21 per cent. Two-wheeler manufacturer Eicher Motors and financial services provider Shriram Finance both dropped 2.14 per cent.

The banking and financial services sectors remained under pressure, with the Nifty Bank index falling 320.70 points or 0.62 per cent to 51,595.80. The Nifty Financial Services index declined 0.49 per cent to 23,850.20.

Market volatility remained evident with 304 stocks hitting their upper circuit limits, while 195 stocks touched their lower circuits. The mixed trading session came after the Federal Reserve’s 25 basis points rate cut and Donald Trump’s re-election victory, which had initially led to a flat opening.

The afternoon trading pattern showed a clear divergence between IT stocks and the broader market, with selling pressure particularly visible in banking, retail, and commodity-linked stocks. The market remained active, with 3,952 stocks being traded on the BSE during the session.

The current market movement suggests caution among investors, with the decline in major indices reflecting broader market sentiment despite the positive movement in technology stocks.

Published on November 8, 2024