Indian equity benchmarks settled marginally lower on Thursday, with the Sensex closing at 80,065.16, down 16.82 points or 0.02 per cent, while the Nifty 50 declined 36.10 points or 0.15 per cent to end at 24,399.40, marking the third consecutive session of losses.

Ultratech Cement led the gainers on the National Stock Exchange, rising 2.66 per cent, followed by Shriram Finance (1.82 per cent), Mahindra & Mahindra (1.48 per cent), Titan (1.45 per cent), and Grasim (1.40 per cent). On the flip side, Hindustan Unilever was the top loser, plunging 5.81 per cent, followed by SBI Life (-4.67 per cent), Hindalco (-3.71 per cent), Nestle India (-2.76 per cent), and Bajaj Auto (-2.69 per cent).

The broader market indicators showed mixed performance, with the NIFTY NEXT 50 declining 0.08 per cent to 70,826.25 and NIFTY MIDCAP SELECT gaining 0.22 per cent to close at 12,572.15. Banking stocks outperformed, with NIFTY BANK rising 0.57 per cent to 51,531.15, while NIFTY FINANCIAL SERVICES advanced 0.43 per cent to 23,854.15.

UltraTech Cement led the gainers among Sensex stocks, rising by 2.77 per cent to ₹11,050.00. Mahindra & Mahindra followed with a 1.35 per cent gain, while Titan (+1.28 per cent), SBI (+1.15 per cent), and Adani Ports (+1.02 per cent) also posted gains. On the losing side, Hindustan Unilever dropped by 5.83 per cent, followed by Nestle India (-2.88 per cent) and ITC (-1.81 per cent). Maruti Suzuki and Asian Paints saw smaller declines of 1.61 per cent and 0.65 per cent, respectively.

Market breadth remained negative, with 2,349 stocks declining against 1,584 advances on the BSE. A total of 129 stocks hit their 52-week highs, while 104 touched their 52-week lows. Twelve stocks hit the upper circuit, and three reached the lower circuit.

“Markets remained subdued on the weekly expiry day, ending largely flat amid mixed signals. The past two days of stagnation in the Nifty index reflect indecision following a recent downturn, though the overall sentiment remains negative,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.

The FMCG sector faced significant pressure, with the sectoral index declining 2.80 per cent, while the PSU Bank index showed strength, gaining 1.2 per cent.

Deepak Jasani, Head of Retail Research at HDFC Securities, noted, “Nifty settled at over two-month low on October 24 falling for a third consecutive session as earning reports failed to uplift investors’ sentiment. Smallcap index fell more than the Nifty as retail investors continued to unload their holdings in smallcaps as the overall market does not seem to be stabilising soon.”

On the macro front, the HSBC Flash India Composite Output Index showed improvement, rising to 58.6 in October from 58.3 in September. The Manufacturing PMI also recovered to 57.4 in October from September’s eight-month low of 56.5.

Looking ahead, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, suggested potential market movement: “The short-term trend of Nifty remains negative. But the present pattern formation is signaling a possibility of an upside bounce from here or from slightly lower levels. A sustainable move above 24600-24700 levels could confirm quantum of upside bounce in the market.”

The market’s lackluster performance came amid continued foreign institutional investor (FII) selling. “Markets continued to struggle as key indices ended flat in a lacklustre trading session. While earnings announcements by few companies have not been encouraging, sluggish global cues along with uninterrupted selling by FIIs in local shares have been prompting investors to take cautious calls with selective bets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

FIIs/FPIs were once again major net sellers, with a net outflow of ₹5,684.63 crore in the capital market segment. DIIs maintained strong buying activity, registering a net inflow of ₹6,039.90 crore. Among other investor categories, clients recorded a net outflow of ₹237.96 crore, NRIs had a minor inflow of ₹4.99 crore, and proprietary traders continued their buying spree with a net inflow of ₹216.42 crore. 

Asian markets followed Wall Street lower, while European markets showed positive momentum on the back of encouraging corporate earnings, despite disappointing PMI data.

Published on October 24, 2024