Nifty, Sensex Extend Losses for 2nd Day; Nifty PSU Banks Hit All-time High

Market Update at 4:10 PM: On Friday, October 31, Indian equity benchmark indices extended losses for the second consecutive session as investors booked profits after the US Federal Reserve hinted at uncertainty over a December rate cut. Sentiment also weakened after SEBI’s circular on eligibility criteria implementation weighed on heavyweight financials, with HDFC Bank and ICICI Bank among the major laggards.

At the close, the Nifty 50 fell 155.75 points, or 0.6 per cent, to end at 25,722.10, while the Sensex declined 465.75 points, or 0.55 per cent, to settle at 83,938.71. On a weekly basis, the Nifty 50 slipped 0.28 per cent, snapping its four-week winning streak. For October, the index extended its September gains by 4.51 per cent.

Among sectoral indices, only one closed in positive territory. The Nifty Financial Services index declined 0.87 per cent, dragging benchmarks lower, while the Nifty Metal index fell 1.09 per cent, marking its second consecutive day of losses after hitting an all-time high earlier in the week. In contrast, the Nifty PSU Bank index rose 1.56 per cent, reaching a new 52-week high, supported by gains in Union Bank of India and Canara Bank following their Quarterly Results. The Nifty Media index was the top loser, down 1.32 per cent.

Broader markets also ended lower, with the Nifty Midcap 100 down 0.45 per cent and the Nifty Smallcap 100 down 0.48 per cent. Market breadth favoured declining stocks, as out of 3,138 traded on the NSE, 1,266 advanced, 1,806 declined, and 109 remained unchanged. A total of 73 stocks hit 52-week highs, 49 touched 52-week lows, 68 were locked in Upper Circuits, and 40 in Lower Circuits.

Market Update at 12:30 PM: Indian equity benchmarks, the Nifty 50 and the Sensex, declined 0.3 per cent each on Friday, marking their second consecutive session of losses. The fall came as investors booked profits after the U.S. Federal Reserve cast doubt over a possible interest rate cut in December.

Despite the short-term decline, both benchmarks remain up nearly 4.7 per cent for October, setting the stage for their best monthly performance since March.

Heavyweight financials, represented by the Nifty Financial Services Index, fell 0.7 per cent, making the largest contribution to the day’s losses. Metal stocks also declined 0.8 per cent, extending their fall for the second session after touching lifetime highs on Wednesday.

On the positive side, state-owned banks outperformed, rising 2 per cent and emerging as the top sectoral gainers. Union Bank of India and Canara Bank led the rally following their quarterly earnings announcements.

In individual stock moves, NTPC slipped 2.3 per cent as weaker power demand weighed on its quarterly results. Meanwhile, broader indices like the Nifty Midcap and Nifty Smallcap remained largely flat, indicating selective buying in the broader market.

Market Update at 10:30 AM: Indian stock markets opened lower on Friday, despite positive cues from Asian peers. The decline was led by weakness in financial, IT, and metal shares.

At the opening bell, the BSE Sensex was at 84,310, down 95 points or 0.11 per cent, while the Nifty50 started at 25,849, lower by 29 points or 0.11 per cent.

Among the Sensex constituents, Asian Paints, Tata Steel, HDFC Bank, Axis Bank, ICICI Bank, Sun Pharma, and Adani Ports were the major laggards in early trade.

However, broader markets showed some resilience, with the Nifty MidCap index rising 0.08 per cent and the Nifty SmallCap index gaining 0.35 per cent in early deals.

Pre-Market Update at 7:40 AM: Indian equity markets are expected to start Friday’s session on a cautious note, following mixed global cues. Trends on the GIFT Nifty indicate that the Nifty 50 may open higher by 16 points, as it was trading at 26,058 around 7:16 AM.

In early trade, Asian markets traded mostly higher, with Japan’s Nikkei hitting a new lifetime high. However, US markets ended lower overnight as technology stocks dragged the major indices. The Dow Jones Industrial Average slipped 109.88 points or 0.23 per cent to 47,522.12, the S&P 500 dropped 68.25 points or 0.99 per cent to 6,822.34, and the Nasdaq Composite declined 377.33 points or 1.57 per cent to 23,581.14.

On Thursday, October 30, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,077.59 crore. Domestic Institutional Investors (DIIs) maintained their buying momentum, purchasing equities worth Rs 2,469.34 crore, marking their sixth consecutive session of net inflows.

On Thursday, benchmark indices ended lower as HDFC Bank and Reliance Industries dragged the market. The Nifty 50 slipped 176.05 points or 0.68 per cent to close at 25,877.85, while the Sensex declined 368.98 points or 0.70 per cent to 84,404.46. India VIX stayed steady above 12. Out of 11 sectors, only two ended in the green, while Nifty Pharma fell 0.59 per cent after a 3.89 per cent decline in Dr. Reddy’s due to a regulatory setback in Canada. Broader markets mirrored the benchmarks, with both Nifty Midcap and Smallcap indices closing in the red.

In global developments, the European Central Bank (ECB) kept its key interest rate unchanged at 2 per cent for the third consecutive meeting, citing stability as economic risks ease. Meanwhile, US President Donald Trump announced a trade truce with China, noting an agreement with President Xi Jinping on rare-earth metals and tariffs.

Gold prices continued their upward trend, heading for a third consecutive monthly rise. Spot gold rose 0.3 per cent to USD 4,034 per ounce, gaining 4.5 per cent for the month, while December futures fell 1.1 per cent to USD 3,955 per ounce. The US dollar index remained steady at 99.478 after touching a three-month high.

Crude oil prices weakened, on track for a third straight monthly decline. Brent crude futures fell 0.40 per cent to USD 64.74 per barrel, and US West Texas Intermediate (WTI) crude eased 0.43 per cent to USD 60.31 per barrel.

For today, Samaan Capital will remain on the F&O ban list.

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