16 Oct , 2024 By : Debdeep Gupta
After a flat opening, weighed down by weak global cues and a lack of fresh triggers, indices lost steam and slid into the red by midday on October 16 amid a broad-based market decline. IT, auto, and FMCG stocks were the biggest laggards on Nifty 50.
At 12.15 PM, the Sensex was down 351 points or 0.4 percent at 81,468 and the Nifty was down 107 points or 0.4 percent at 24,950. About 1,535 shares advanced, 1,785 shares declined, and 92 shares remained unchanged.
Investor sentiment took a hit following disappointing results from heavyweights like Reliance Industries on October 14, as per analysts.
The broader markets, initially in the green, also pulled back, with the BSE Midcap index losing 0.5 percent and the Smallcap index shedding 0.4 percent.
Investors now await a slew of data releases from the US, including September retail sales, industrial production figures, and weekly jobless claims, all scheduled for October 17.
Sectoral Trend
All 13 sectoral indices were in the red, with Nifty Auto and IT being the biggest losers. Pressure on tech giants such as Infosys and TCS dragged the Nifty IT index down by over a percent. Analysts noted that earnings reports from TCS and HCLTech have been lackluster, reflecting margin pressures and weak demand.
Nifty Auto saw a 1.5 percent dip, with M&M, Tata Motors, and Maruti Suzuki weighing heavily on the sector.
Fundamental View
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that while domestic flows are cushioning the market from FII selling, lofty valuations are limiting upside potential.
"The domestic flows will continue to support the market but elevated valuations will put a cap on the upside," he said.
Technical View
Deepak Jasani, Head of Retail Research at HDFC Securities, said Nifty remains volatile, struggling to break above 25,200. He expects Nifty to trade between 25,234 and 24,832 in the near term.
Key Nifty gainers
HDFC Life, Grasim, HDFC Bank, Dr Reddys Labs, Bajaj Auto
Key Nifty losers
Trent, M&M, Nestle, Hero MotoCorp, Tata Motors
Key Sensex gainers
HDFC Bank, Bharti Airtel, Power Grid, Asian Paints, SBI
Key Sensex losers
M&M, Nestle, Titan, Tata Motors, JSW Steel
Stock Moves
Cochin Shipyard: Shares fell over 4 percent as the government's offer-for-sale to offload a 5 percent stake in the PSU company opened on October 16. Through the OFS, the government intends to pare stake at a floor price of Rs 1,540 per share, implying a discount of 7 percent from the previous closing level.
KEI Industries: Shares tanked as much as 7 percent after the firm's operating margins contracted in the July-September quarter.
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