Subdued Trading On F&O Expiry

The fundamental trigger for the FII outflows is the elevated valuations in India and the relatively cheap and attractive valuations in markets like China and Hong Kong

Mumbai: Benchmark indices Sensex and Nifty edged lower on Thursday, extending their losing run to the fourth straight day due to selling in FMCG and auto shares on disappointing earnings and unabated FII outflows.

In a lacklustre trade, the BSE Sensex slipped 16.82 points or 0.02 per cent to settle at 80,065.16. During the day, the benchmark hit a high of 80,259.82 and a low of 79,813.02, gyrating 446.8 points. The NSE Nifty skidded 36.10 points or 0.15 per cent to 24,399.40 in a volatile trade.

“The major headwind the market is facing now is the massive, unprecedented and sustained FII selling which has touched Rs93,088 crore through October 23, as per NSDL data. The fundamental trigger for the FII outflows is the elevated valuations in India and the relatively cheap and attractive valuations in markets like China and Hong Kong. Uptrend in the market is not compatible with downtrend in earnings growth and, therefore, the market is witnessing selling at every rise, turning the near-term market structure into sell on rally,” said VK Vijayakumar, chief investment strategist, Geojit Financial Services. A total of 2,349 stocks declined while 1,584 advanced and 100 remained unchanged on the BSE.

“Despite persistent selloffs by FIIs, the benchmark indices recorded only a minor loss, as India’s October PMI data continued to indicate healthy growth, which also supports the RBI’s growth guidelines for FY25. The broader market exhibited a mixed response due to valuation corrections in sectors such as PSUs and banking & financials. Meanwhile, the FMCG sector faced declines attributed to delayed demand recovery and margin pressures,” Vinod Nair, head (research), Geojit Financial Services.

The BSE smallcap gauge declined 0.72 per cent and midcap dipped by 0.13 per cent.

Ajit Mishra, Sr V-P (research), Religare Broking Ltd, said: “Stock markets remained subdued on the weekly expiry day, ending largely flat amid mixed signals.”

Foreign Institutional Investors (FIIs) offloaded equities worth Rs5,684.63 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs) bought equities worth Rs 6,039.90 crore.

From the 30 Sensex pack, Hindustan Unilever fell by nearly 6 per cent after the FMCG major reported a 2.33 per cent decline in consolidated net profit at Rs 2,595 crore for the second quarter ended in September 2024 impacted by moderation in demand from the urban market. Nestle, ITC, Maruti, Asian Paints, Infosys, Tata Consultancy Services, Larsen & Toubro and HCL Technologies were the other big laggards. UltraTech Cement, Mahindra & Mahindra, Titan, Adani Ports, State Bank of India and Power Grid were among the gainers. Among sectoral indices, BSE FMCG tanked 2.66 per cent. Realty (1.21%), telecommunication (1.02%), IT (0.64%) and industrials (0.62%) also declined.

Healthcare, bankex, power, commodities, energy and utilities were the gainers. In Asian markets, Seoul, Shanghai and Hong Kong settled lower while Tokyo ended higher. European markets were trading in positive territory. The US markets ended in negative territory on Wednesday. Global oil benchmark Brent crude jumped 1.99 per cent to $76.45 a barrel. The BSE benchmark declined 138.74 points or 0.17 per cent to settle at 80,081.98 on Wednesday. The Nifty went lower by 36.60 points or 0.15 per cent to 24,435.50.