Sensex and Nifty Close Lower Amid Market Volatility

On October 23, 2024, Indian equity markets experienced a tumultuous trading session, leading to a modest decline in the major indices. The BSE Sensex dropped by 138.74 points, equivalent to a 0.17 percent decrease, finishing at 80,081.98. Meanwhile, the NSE Nifty 50 decreased by 36.60 points or 0.15 percent, closing at 24,435.50.

Market Movements

Bajaj Finance emerged as the standout performer, rising by 4.90 percent. Other notable gainers included Tech Mahindra with a 2.14 percent increase, Tata Consumer Products up 1.78 percent, Bajaj Auto rising 1.75 percent, and HDFC Bank adding 1.26 percent to its value. In contrast, Mahindra & Mahindra led the losses, falling by 3.22 percent, followed by Sun Pharma at a decrease of 2.69 percent, Eicher Motors down 2.07 percent, Shriram Finance declining by 1.86 percent, and Power Grid slipping by 1.84 percent.

Broader Market Performance

The broader market fared better than the key indices, with the Nifty Midcap 100 and Smallcap 100 indices increasing by approximately 0.64 percent and 1.25 percent, respectively. However, the NIFTY NEXT 50 slipped by 0.38 percent to close at 70,884.70, while the NIFTY MIDCAP SELECT gained 0.82 percent to reach 12,544.15, indicating that mid-cap and small-cap stocks saw positive trends despite the major indices' declines.

Investor Sentiment and Market Trends

Market breadth was positive, with 2,187 stocks advancing and 1,743 declining on the BSE. Interestingly, 122 stocks reached their 52-week highs, while 163 hit 52-week lows during the session. There were also 253 stocks that touched the upper circuit, with 346 hitting the lower circuit limits. Investor sentiment took a hit due to disappointing earnings reports andforeign institutional investors (FIIs) reacting negatively, leading to concerns about market stability.

Sector Performance

The performance across different sectors was mixed. The IT index stood out as the top gainer, rallying 2.5 percent, while the Healthcare and Pharma sectors faced difficulties, shedding over 1.5 percent. The NIFTY BANK ended the day marginally lower at 51,239.00, down 0.04 percent, and the NIFTY FINANCIAL SERVICES index experienced a slight gain, closing at 23,752.00 with a rise of 0.22 percent.

Market Influences and Future Outlook

The market's performance was largely affected by continuous outflows from foreign investors and disappointing quarterly earnings from several companies. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that these factors have cast a shadow over market sentiment. Foreign investors were notably negative, with net selling amounting to ₹3,978.61 crore while domestic institutional investors (DIIs) showed robust buying interest with a net inflow of ₹5,869.06 crore.

Volatility and Trading Patterns

The India VIX, a measure of market volatility, increased by 1.31 percent to 14.59, highlighting an uptick in market uncertainty. As for trading patterns, the session began with the Sensex at 79,921.13 compared to the previous close of 80,220.72. The Nifty opened at 24,378.15, down from 24,472.10. Despite attempts to recover, selling pressure at higher levels resulted in a lack of sustained upward movement.

Sensex, Nifty, Markets