Market recovers on late-hour buying; Sensex, Nifty end in red

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After opening the day in negative note, domestic markets staged a strong recovery in the closing hours. However, benchmarks BSE Sensex and NSE Nifty ended marginally lower on Tuesday, due to subdued performance of global markets and FII outflows. Analysts said the broader market witnessed buying interest at lower level on Q2 earnings and positive sentiment ahead of Diwali.

Nielsen IQ surven said that the FMCG sector witnessed positive consumption trends at the pan-India level recording a volume growth of 8.6 per cent in the September quarter while value growth was pegged at 9 per cent. This pick-up in consumption was also supported by the fact that rural consumers are beginning to spend on non-food categories beyond essentials., it said. 

While Sensex closed 16.29 points or 0.03 per cent lower at 64,942.40, Nifty slipped 5.05 points or 0.03 per cent to 19,406.70.

Shrey Jain, Founder and CEO SAS Online, a deep discount broker, said, “The market’s three-day winning streak was halted due to profit booking in select heavyweights, influenced by weak global cues and fading optimism about the end of monetary tightening.”

Sun Pharma (2 per cent), BPCL (1.69 per cent), NTPC (1.57 per cent), Dr Reddy’s (1.38 per cent) and IndusInd Bank (1.10 per cent) were the top gainers within the Nifty50 index, while Hero MotoCorp (1.04 per cent), Bajaj Finance (0.83 per cent), JSW Steel (0.77 per cent), Divi’s Labs (0.72 per cent) and Reliance Industries (0.68 per cent) were the laggards.

Market Depth

Unlike the Sensex, BSE MidCap and SmallCap advanced 0.53 per cent and 0.38 per cent, respectively. The broader BSE 500, too, gained 0.15 per cent.

Of the 3,813 stocks traded on the BSE, 1,929 stocks advanced, 1,760 declined and 124 stocks remained unchanged.

Sectoral Trends

Except BSE Realty, Auto, Metal, Teck and Consumer Durables, all the sectoral indices ended in a positive zone on Tuesday led by BSE Oil and Gas (1.11 per cent), Healthcare (1.06 per cent) and Utilities (0.51 per cent).

FII outflows

Foreign institutional investors (FIIs) offloaded stocks worth ₹497.21 crore, per provisional data on stock exchange.

‘Market resilient’

According to Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd, the market has shown resilience at lower levels, despite subdued global environment.

“We expect market to gradually move upwards given strong Indian economy and heathy earning season. Investors now await US Fed Chair Jerome Powell’s commentary which is scheduled on Thursday for future direction. Also, China’s CPI data would be closely watched,” Khemka added.