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Stock market today: BSE Sensex extended its losing streak for the third consecutive day on Wednesday, declining by 138 points in a choppy trade session. Investors booked profits in auto, pharma, and capital goods shares amid persistent foreign portfolio investor (FPI) outflows.
The 30-share BSE Sensex, which opened lower but later traded with gains on sporadic buying by investors, erased its earlier gains and closed lower by 138.74 points or 0.17 per cent at 80,081.98, with 22 of its constituents ending in the red.The index briefly dipped below the 80,000 mark to 79,891.68 due to increased selling in the second half of the trading session.
The NSE Nifty also closed lower by 36.60 points or 0.15 per cent at 24,435.50, fluctuating between a high of 24,604.25 and a low of 24,378.10 during the day.
Among the 30 Sensex constituents, Mahindra & Mahindra, Sun Pharma, Power Grid, NTPC, Adani Ports, Larsen & Toubro, ICICI Bank, and Titan were the biggest laggards.
On the other hand, Bajaj Finance climbed nearly 5 per cent after reporting a 13 per cent increase in consolidated net profit at Rs 4,014 crore for the second quarter ended September 2024.
Other significant gainers included Tech Mahindra, Tata Consultancy Services, HDFC Bank, HCL Technologies, and Bajaj Finserv. According to exchange data, foreign institutional investors (FIIs) offloaded shares worth Rs 3,978.61 crore on Tuesday, while domestic institutional investors (DIIs) bought equities worth Rs 5,869.06 crore.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “Investor mindset turned gloomy with the tepid earnings and a knee jerk reaction from FIIs, which dragged the market sentiment.
However, mid and smallcaps are experiencing bargain hunting following the recent decline, though the sustainability of this momentum-driven buying remains uncertain. The US 10-year yield inched higher, signalling a slower tempo of rate cuts by the FED, which is poised for a risk-off sentiment towards EMs.”
The BSE smallcap gauge jumped 0.93 per cent, and the midcap index climbed 0.48 per cent. Among sectoral indices, BSE power fell by 1.39 per cent, capital goods by 1.17 per cent, industrials by 0.75 per cent, auto by 0.71 per cent, and utilities by 0.57 per cent. In contrast, IT jumped 1.98 per cent, teck by 1.25 per cent, telecommunication by 0.41 per cent, and financial services by 0.40 per cent.
Ajit Mishra, SVP, Research at Religare Broking Ltd, stated, “Apart from the concern of continuous outflow of the foreign investors, the disappointment on the earnings front is largely weighing on the sentiment.”
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, added, “Nifty opened gap down and witnessed a volatile day of trade today. It swung in both directions and ultimately closed in the negative. Considering the price and momentum indicator we expect the range bound price action to continue.”
In Asian markets, Seoul, Shanghai, and Hong Kong settled higher, while Tokyo ended lower. European markets were trading on a mixed note, and the US markets ended flat on Tuesday. The global oil benchmark Brent crude declined 0.97 per cent to USD 75.30 a barrel.
