Nifty and Sensex Fall for Second Consecutive Day; All Sectors in Red

Market Update at 4:05 PM: On Tuesday, October 14, Indian equity benchmark indices ended lower, extending their losses from the previous session. The Nifty 50 slipped 81.85 points, or 0.32 per cent, to settle at 25,145.50, while the Sensex declined 297.07 points, or 0.36 per cent, ending at 82,029.98. The decline was led by Bajaj Finance and Tata Consultancy Services (TCS), while India’s fear index, India VIX, rose over 1 per cent during the day, reaching as much as 6 per cent during trading hours.

For the week, Nifty 50 and Sensex have fallen around 0.5 per cent, with financials giving up some gains after a recent rally. All 11 sectoral indices ended in negative territory on Tuesday. Nifty Financial Services and Nifty Bank fell 0.2 per cent after gaining for two consecutive sessions, while private lenders (Nifty Private Bank Index) and state-owned banks (Nifty PSU Bank) declined 0.34 per cent and 1.52 per cent, respectively, due to profit booking. Broader markets also ended on a negative note, with the Nifty Midcap and Nifty Smallcap indices closing lower.

Among individual stocks, LG Electronics India listed at a 50 per cent premium over its issue price, marking the best stock market debut for a billion-dollar IPO since Eternal in 2021. Railway stock Kernex Microsystems hit the 10 per cent Upper Circuit after RDSO approval for Kavach 4.0. Cochin Shipyard recovered from the day’s lows, gaining over 1 per cent after securing a “mega” order from a major European client, with orders exceeding Rs 2,000 crore considered “mega.”

Nifty PSU Bank declined 1.52 per cent, snapping a three-day rally, with all 12 constituents ending in negative territory. Nifty Media and Nifty Metal also fell nearly 1 per cent, while all sectoral indices witnessed losses on Tuesday.

Top contributors to Nifty gains were ICICI Bank (+8.40 points), Max Healthcare Institute (+2.63 points), and Tech Mahindra (+2.49 points). The largest drags on the index were Bajaj Finance (-11.46 points), TCS (-10.51 points), and Axis Bank (-9.74 points).

The Nifty Midcap 100 index ended down 0.75 per cent, and the Smallcap 100 closed lower by 0.82 per cent. Market breadth was negative, with 836 advancing stocks, 2,266 declining, and 95 remaining unchanged out of 3,197 stocks traded on the NSE. A total of 90 stocks hit their 52-week highs, 115 touched their 52-week lows, 67 stocks were locked in upper circuits, and 73 stocks were in Lower Circuits.

Market Update at 12:45 PM: Following a positive start, Indian equity benchmark indices turned lower as investors assessed global uncertainties arising from US-China trade policies along with India Inc’s earnings performance.

At 12:445 PM, the BSE Sensex was quoting at 81,872.75 levels, down 454 points or 0.55 per cent, while the Nifty50 declined 135.15 points or 0.54 per cent to 25,092.

Among the Sensex constituents, HCL Tech, Tech Mahindra, Tata Steel, Infosys, Reliance Industries, BEL, Bajaj Finserv, Ultratech Cement, ICICI Bank, Kotak Mahindra Bank, and L&T were the Top Gainers, rising up to 1.3 per cent.

On the other hand, Eternal, Maruti Suzuki, Axis Bank, Sun Pharma, SBI, Bajaj Finance, Adani Ports, and Bharti Airtel were among the top laggards in today’s trade.

In the broader markets, the Nifty MidCap 100 index gained 0.82 per cent, while the Nifty SmallCap 100 index advanced 1 per cent, indicating continued investor interest in mid- and Small-Cap stocks despite volatility in large caps.

All sectoral indices were trading in the red. The Nifty PSU Bank index led the losses, down 1.5 per cent, followed by Pharma, Consumer Durables, Media, Realty, Metal, FMCG, Auto, Financial Services, and Energy indices.

Market Update at 10:30 AM: India’s equity benchmarks edged higher on Tuesday, supported by IT stocks after upbeat Quarterly Results from HCLTech, while softer retail inflation has raised hopes of a potential rate cut by the Reserve Bank of India in December.

The Nifty 50 rose 0.2 per cent to 25,277.55, while the BSE Sensex nudged 0.09 per cent higher to 82,404.54, as of 9:15 a.m. IST.

Nifty IT index rose 0.6 per cent. Shares of HCLTech gained 1.4 per cent after the country’s third-largest software services exporter maintained its annual revenue growth forecast of 3–5 per cent and beat second-quarter revenue estimates.

The broader small-cap and Mid-Cap indices rose 0.4 per cent and 0.3 per cent, respectively, reflecting overall positive market sentiment.

On the macroeconomic front, domestic retail inflation fell to an eight-year low of 1.54 per cent in September, government data showed on Monday, as food prices eased. The sharp decline in inflation strengthened the case for a potential policy rate cut by the RBI in its December meeting..

Pre-Market Update at 7:45 AM: Equity benchmark indices, Sensex and Nifty 50, are expected to open flat on Tuesday, October 14, tracking mixed global cues. At 7:15 AM, the GIFT Nifty was trading at 25,316, down 10 points, indicating a muted start for domestic equities.

India’s retail inflation data released after market hours on Monday showed significant moderation. Retail inflation fell to an eight-year low of 1.54 per cent in September, below the Reserve Bank of India’s comfort range. In comparison, CPI-based inflation stood at 2.07 per cent in August and 5.49 per cent in September 2024. The last time inflation was lower was in June 2017 at 1.46 per cent.

In early Asian trade, markets showed a mixed trend, while on Wall Street, indices closed higher overnight. The Nasdaq posted its sharpest one-day gain since May 27, supported by optimism in technology stocks.

HCL Technologies announced its Q2FY26 results post-market hours on Monday. The company reported a 10.2 per cent quarter-on-quarter rise in net profit to Rs 4,235 crore. Revenue increased 5.2 per cent QoQ and 10.07 per cent year-on-year to Rs 31,942 crore. EBIT rose 3.5 per cent YoY to Rs 5,550 crore, while EBIT margin improved by 55 basis points QoQ to 17.4 per cent. The company declared an interim dividend of Rs 12 per share.

Investors will track Q2 results from Tech Mahindra, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company, Persistent Systems, Bank of Maharashtra, Indian Renewable Energy Development Agency, Leela Palaces Hotels & Resorts, Thyrocare Technologies, and Cyient DLM.

On Monday, October 13, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 240.10 crore, ending a four-day buying streak. Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities worth Rs 2,333.42 crore, marking their 34th consecutive session of net inflows.

Indian markets ended lower on Monday, breaking a two-day winning streak as renewed US tariff threats against China dampened sentiment. The Nifty 50 fell 58 points to 25,227.35, while the Sensex declined 173.77 points to 82,327.05. The India VIX rose nearly 9 per cent to 11, indicating higher volatility.

US President Donald Trump’s comments about raising tariffs on China in response to critical mineral export curbs escalated trade tensions and inflation concerns in the US, which could delay Federal Reserve rate cuts. Elevated US yields may pressure emerging market equities, including India. Sectorally, five of 11 Nifty indices ended in the green, while IT stocks slipped 0.78 per cent.

US markets closed sharply higher as chipmakers led a rebound. Broadcom surged nearly 10 per cent after news of its collaboration with OpenAI to produce the firm’s first in-house AI chips. The Nasdaq gained 2.21 per cent to 22,694.61, the S&P 500 rose 1.56 per cent to 6,654.72, and the Dow Jones Industrial Average advanced 1.29 per cent to 46,067.58.

In other developments, Hamas released the last Israeli hostages, while Israel freed Palestinian prisoners as part of a ceasefire deal brokered by Trump.

The US and China are set to impose port fees on shipping companies. China has started levying charges on US-owned, operated, built, or flagged vessels, while Chinese-built ships will be exempt.

Gold prices hit new record highs as investors turned to safe-haven assets. Spot gold rose 0.4 per cent to USD 4,124.79 per ounce, touching an all-time high of USD 4,131.52 earlier. Silver climbed 0.4 per cent to USD 52.5868 per ounce in London.

Oil prices edged higher amid signs of improving US-China relations. Brent crude rose 0.43 per cent to USD 63.59 per barrel, while WTI futures increased 0.49 per cent to USD 59.78 per barrel.

The US dollar remained stable as trade tensions eased. The dollar index, tracking the greenback against major peers, inched up 0.04 per cent to 99.34. 

For today, RBL Bank and Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.