LAST TRADE: Sensex flat, Nifty slips below 24,400 as FIIs continue selling; HUL tanks more than 5%
Indian equity markets closed in the red on Thursday, October 24, as continued sell-offs in other countries and weak global signals kept investors on edge.
The Sensex ended 94 points lower at 79,987, while the Nifty shed 57 points to close at 24,378. Foreign institutional investors (FIIs) led the way in mitigating the decline, having loaded Rs 93,088 crore into Indian funds so far this month.
Higher rates in India, compared to attractive markets like China and Hong Kong, continue to drive this migration.
Big winners and losers
On the NSE, UltraTech Cement was the top gainer, up 2.90 percent, followed by Shriram Finance (1.47 percent), M&M (1.42 percent), and Titan (1.29 percent). However, losses were more pronounced, with Hindustan Unilever (HUL) down 5.62 percent, making it the top performer.
SBI Life (4.68 percent), Hindalco (3.41 percent), and Nestle India (3.27 percent) were among the other top losers.
Deepak Jasani, Head of Market Research at HDFC Securities said, Nifty settled at two-month lows on October 24 for the third session in a row as earnings reports failed to lift investor sentiment. The Nifty saw a 139-high-low range with volume down 17% compared to the previous session. This suggests that continued selling pressure may be nearing the end of the period. The Smallcap index fell more than the Nifty as retail investors continued to exit their holdings in small caps as the overall market seemed unstable in the near future. Asian markets followed Wall Street’s decline while European markets rose as corporate earnings reports surprised positively while the PMI numbers disappointed.
The HSBC Flash India Composite Output Index – a periodically updated index that measures the month-on-month change in aggregate output of India’s manufacturing and services sectors – rose to 58.6 in October, from the last reading of 58.3 in September. The HSBC Flash India Manufacturing PMI recovered from September’s eight-month low of 56.5 to 57.4 in October.
Nifty formed a doji after falling on October 24 suggesting that for now sellers may have lost momentum while buyers have started to sink. Nifty can now start its upward correction soon and face resistance in the band of 24568-24604 while 24196 can provide support in the near term.
Sector performance
FMCG stocks were the biggest losers, while HUL and Nestle India led the decline. Steel stocks were also under pressure, dragged down by a 3.41 percent decline in Hindalco. On the other hand, the banking industry has given relief, HDFC Bank has managed to stay green. The healthcare sector also saw selective buying, as Cipla posted modest gains.
“Despite persistent selling by FIIs, benchmark indices recorded only marginal losses, as India’s PMI data for October continued to show healthy growth, further supporting RBI’s growth guidelines for FY25. The broader market showed a mixed reaction to the valuation adjustment in sectors like PSUs and banking and finance Meanwhile, the FMCG sector faced a slowdown due to supply delays and margin pressures, according to analyst Vinod Nair, Head of Research, Geojit Financial Services.
Nify fell below the key support level of 24,400, closing at 24,378. Analysts recommend the strategy of “selling in a rally” until strong signals appear, with important resistance seen at 24,600. Global markets added to the bearish sentiment, as Wall Street saw its biggest drop since early September, further dampening investor confidence.
