In a session marked by volatility, the BSE Sensex, an equity benchmark, experienced a decline, reversing the positive trend observed over the previous two sessions. This shift was primarily attributed to selling pressure in IT and technology stocks. Despite this, the losses were limited by substantial buying activity in energy, metal, and auto sectors, as stated by market experts.
Over the course of the trading session, the 30-share BSE Sensex registered a decline of 64.66 points, equating to 0.10 percent, ultimately closing at 66,408.39 points. Within this index, 14 of its constituent stocks settled lower, while 16 advanced. The index initially opened higher and reached a high point of 66,577.60 points during early trading. However, it later retreated to a low of 66,342.53 points.
Additionally, the broader Nifty, represented by the NSE, experienced a decline of 17.35 points, corresponding to 0.09 percent. This movement resulted in the Nifty closing below the 19,800 level, at 19,794 points. Throughout the session, the Nifty's range fluctuated between 19,772.65 and 19,843.30 points.
Despite the overall negative trend, the market breadth displayed positivity. Among a total of 3,792 traded stocks, 2,168 recorded gains, 1,501 experienced losses, and 123 remained unchanged. Notably, 284 stocks reached their 52-week highs, while 20 stocks touched their lowest levels of the year.
Analysts pointed to the decline in IT sector stocks as a significant factor behind the downward pressure observed on the key indices. This was influenced by the mixed results reported by IT giants TCS and Infosys. TCS, the largest software exporter in India, registered a 1.89 percent decrease in its stock price after delivering a set of quarterly results characterized by mixed performance for the July-September quarter. While TCS recorded an 8.7 percent year-on-year increase in net profit and an 8 percent growth in revenue compared to the previous year, the growth rate was subdued on a sequential basis.
Infosys, the biggest loser among the Sensex stocks, saw its stock price drop by 2.29 percent in anticipation of the announcement of its financial results after the market's closing hours. HCL Technologies also experienced a decline of 1.75 percent ahead of its results.
The benchmark index witnessed profit-taking in stocks like Bajaj Finance, Nestle, Kotak Bank, SBI, Bharti Airtel, L&T, and Asian Paints. In contrast, Maruti displayed a positive trend, with a gain of 1.73 percent attributed to strong retail sales in September. Power Grid, M&M, JSW Steel, and Tata Steel also recorded gains.
Expanding beyond the benchmark indices, the BSE MidCap index increased by 98.15 points, equivalent to 0.30 percent, to close at 32,322.73. Meanwhile, the SmallCap index saw a growth of 228.56 points, corresponding to 0.60 percent, concluding at 38,198.50.
Among the various sectoral indices, BSE IT experienced the most significant decline, with a 1.48 percent drop. BSE Teck also registered a decrease of 1.36 percent. In contrast, BSE Oil & Gas observed an increase of 1.4 percent, with BSE Energy rising by 1.16 percent. Additionally, BSE Metal saw a growth of 0.93 percent, while BSE Power increased by 0.42 percent.
Market participants remained attentive to upcoming US inflation data, which was expected to have implications for the ongoing debate surrounding interest rates. This outlook, combined with China's sovereign wealth fund's acquisition of stakes in the country's major banks, contributed to the overall positive sentiment in world markets.
In Asia, countries including Japan, China, and Hong Kong reported gains, with Hong Kong's Hang Seng index closing 1.9 percent higher. Japan's Nikkei 225 experienced a gain of 1.8 percent, while South Korea's Kospi was up 1.2 percent. China's Shanghai Composite rose by 0.9 percent.
In Europe, stock markets in France, Germany, and the UK demonstrated an upward trend as investors awaited the release of US inflation data. Nevertheless, Foreign Institutional Investors (FIIs) continued to be net sellers, offloading shares worth Rs 421.77 crore on the previous day, according to data from the BSE.
Â
