Indian markets dip as Nifty closes below 23,700

Indian equity indices closed on a negative note with the Nifty falling below 23,700. The Sensex lost 312.53 points or 0.40 percent to settle at 78,271.28. The Nifty was down 42.95 points or 0.18 percent to end at 23,696.30.

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Top losers on the Nifty included Asian Paints, Titan Company, Nestle India, Hindustan Unilever Limited (HUL), and Britannia Industries. Hindalco Industries, ONGC, Apollo Hospitals, BPCL, and Adani Ports were among the top gainers. FMCG, Consumer Durables, realty, and auto sectors dragged the indices into the red.

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Sectors like oil & gas, metal, media, energy, and PSU banks saw gains between 1 to 1.8 percent. The Nifty midcap index rose by 0.7 percent. The Nifty smallcap index added nearly 2 percent.

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Ajit Mishra, SVP, Research, Religare Broking said “Markets took a pause after the recent rally, ending slightly lower. Nifty showed range-bound movement throughout the session. Sectoral trends were mixed, with metals and energy registering gains, while realty and FMCG sectors were under pressure. Broader indices showed strong participation, posting gains ranging from 0.7% to 1.85%.

Indian markets close slightly lower

Moving forward, the Nifty may continue to consolidate, but the broader trend remains positive unless there is a decisive close below 23,400.” Rupak De, Senior Technical Analyst at LKP Securities said “The Nifty remained mostly sideways before closing slightly lower. The downside was limited around 23,700, with the upside capped at 23,800. Short-term trends still favor the bulls, with support at 23,500. On the higher end, the index may move towards 24,050 in the near term.” Swiggy reported a Q3 net loss of Rs. 800 crore compared to a Rs. 574 crore loss year-on-year. For Bharti Airtel Q3, analysts expect the net profit to double year-on-year, driven by higher ARPU from the July 2024 tariff hike and 4G migration. Vinod Nair, Head of Research, Geojit Financial Services said “The market traded within a narrow range. Investors balanced a favorable domestic outlook, buoyed by a positive budget, against global uncertainties. Lower crude oil prices and declining U.S. bond yields supported the positive market sentiment, but the depreciating rupee could offset these gains. Rate-sensitive sectors are attracting attention ahead of a potential RBI rate cut.” The Indian rupee ended at a fresh record low of 87.46 per dollar, compared to the previous close of 87.07, continuing its downward trajectory. Indian stock markets witnessed mixed trends, with declines in consumer stocks weighing on the indices. Despite some sectoral gains, the broader market sentiment remained cautious ahead of key economic announcements and global uncertainties. Traders and investors are advised to focus on fundamentally strong stocks and adopt a strategy of buying on dips given the current market dynamics.