 |
|
The Indian stock market, which had experienced a four-day record-breaking rally, experienced a period of consolidation on September 25. The Sensex and Nifty remained largely flat, with IT, auto, and FMCG stocks leading the declines. This pause in the upward trend came after a period of optimism driven by the US Federal Reserve's aggressive rate cut last week and the expectation of continued foreign investment.
The Nifty IT index experienced a significant drop, falling nearly a percent. Tech Mahindra, LTIMindtree, and Infosys were among the key contributors to this decline, with each stock experiencing a decrease of between 1 and 4 percent. Notably, the IT index, which had seen impressive gains of 12, 13, and 5 percent from June to August, has come under selling pressure in September, resulting in a decline of nearly 2 percent so far this month.
The Nifty Auto index also ended its four-day winning streak, slipping by half a percent. Tata Motors, M&M, and Bajaj Auto led the decline in the auto sector. Meanwhile, banking stocks managed to hold their ground ahead of the weekly expiry of the Bank Nifty F&O contracts. ITC, Grasim, Axis Bank, NTPC, and Power Grid were among the top gainers on the Nifty 50, rising between 1 and 4 percent, with Power Grid experiencing a 4 percent increase. This rise in Power Grid's stock was attributed to the government's $110 billion transmission capex boost. Goldman Sachs reiterated a 'buy' rating on Power Grid, with a target price of Rs 370. On the other hand, Tata Motors, Titan, Tata Consumer, Tech Mahindra, and LTIMindtree were among the top losers, declining between 1 and 4 percent.
While the recent rally has now been tempered, analysts anticipate a period of consolidation in the market. They believe that fresh catalysts are needed to extend the upward momentum. As the market awaits these catalysts, the trading activity is expected to remain subdued.
Source: Sensex, Nifty hover around flatline; IT and auto stocks decline