Nifty & Sensex Closed in Red; FMCG Outperforms, Auto Stocks Under Pressure

On Tuesday, September 2, Indian equity benchmark indices ended the trading session in negative territory after a volatile day. The Nifty 50 opened on a positive note and briefly reclaimed its 20-DMA, but selling pressure in the second half pushed the index down. This session also marked the first weekly derivative expiry shift on NSE, with expiries now moving from Thursday to Tuesday, adding to the volatility. At the close, the Nifty 50 slipped by 45.45 points, or 0.18 per cent, to settle at 24,579.60, while the Sensex fell by 206.60 points, or 0.26 per cent, to 80,157.89. Banking heavyweights ICICI Bank and HDFC Bank were among the key drags on the benchmark index.

On the sectoral front, six of the 11 major indices ended higher, with Nifty FMCG gaining 1.12 per cent and emerging as the top sectoral gainer. The rally in FMCG stocks such as Nestle India, Hindustan Unilever, Dabur India, and Emami, which rose between 1 per cent and 4 per cent, was driven by expectations of GST rate cuts. Dabur and United Breweries were the Top Gainers in the FMCG index. Sugar stocks also rallied sharply, with Balrampur Chini and others soaring up to 20 per cent, after the government allowed ethanol production from sugarcane juice and molasses. The policy boost is seen as favourable for the sector’s earnings outlook.

On the flip side, Nifty Financial Services declined 0.66 per cent, dragged down by weakness in SBI Cards. Among individual stocks, Mahindra & Mahindra fell 2.45 per cent, emerging as one of the Top Losers on the auto index. Reports of proposed GST hikes on luxury electric vehicles also weighed on sentiment in the auto sector. Puravankara gained 1.58 per cent after its subsidiary secured a Rs 2,700 crore (USD 309 million) order for developing a housing society, adding momentum in the real estate segment.

The broader markets ended in positive territory, with the Nifty Midcap 100 index up 0.27 per cent and the Small-Cap 100 rising 0.53 per cent. Market breadth also favoured the bulls, with 1,929 stocks advancing against 1,117 declines, while 86 remained unchanged. A total of 83 stocks touched new 52-week highs, while 44 hit fresh 52-week lows. Moreover, 151 stocks were locked in upper circuits, whereas 46 were stuck in lower circuits, highlighting strong activity in small-cap and Mid-Cap segments.

On the Nifty 50, Reliance Industries added 20.33 points, NTPC contributed 6.23 points, and Power Grid gained 6.15 points, supporting the index. On the other hand, ICICI Bank dragged the index down by 31.46 points, HDFC Bank by 19.85 points, and Mahindra & Mahindra by 15.09 points.

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