The benchmark indices, Sensex and Nifty fell on Monday on the back of selling pressure in IT, consumer durables and financial stocks. Investor caution prevailed as the market awaited the release of inflation data due later in the day.
The 30-share BSE Sensex relinquished gains made on Diwali day, falling by 325.58 points or 0.50 per cent to settle at 64,933.87. Throughout the day, it saw a drop of 406.09 points or 0.62 per cent, reaching 64,853.36. The Nifty also declined by 82 points or 0.42 per cent to 19,443.55.
Market observers attributed the downturn to persistent foreign fund outflows, weakness in the rupee, and a cautious sentiment among investors. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the global uncertainty and cited factors such as the deceleration in Industrial Production (IIP) growth and the weakening Manufacturing PMI, driven by rising interest rates and inflation.
Major laggards among the Sensex firms included Bajaj Finance, Infosys, Tech Mahindra, ICICI Bank, Nestle, Tata Consultancy Services, HDFC Bank, and Reliance Industries. In contrast, Mahindra & Mahindra, JSW Steel, NTPC, Power Grid, and IndusInd Bank were among the gainers.
The broader market saw the BSE midcap gauge climbing 0.10 per cent, while the smallcap index dipped marginally by 0.01 per cent. Sector-wise, IT, consumer durables, teck, FMCG, services, and financial services faced declines, while energy, utilities, power, and auto emerged as gainers.
Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, noted that markets started the week on a weak note, losing nearly half a percent, influenced by weak global cues. The deceleration in India’s industrial production growth to 5.8 per cent in September from 10.3 per cent in August added to the cautious sentiment.
Inflation data was expected later in the day, contributing to the overall caution in the market. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 190.06 crore on Sunday, and the rupee settled lower against the US dollar, closing at 83.32 (provisional).
The stock exchanges had conducted a one-hour special Muhurat trading session on November 12, marking the occasion of Diwali. The BSE benchmark had jumped 354.77 points or 0.55 per cent, settling at 65,259.45, while the Nifty advanced 100.20 points or 0.52 per cent to 19,525.55. Equity markets will remain closed on Tuesday for ‘Diwali Balipratipada.’
