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The Indian stock market displayed mixed signals on October 10, with the Sensex closing in the green while the Nifty 50 index struggled to maintain its footing and settled into flat territory. The positive opening was attributed to minutes from the Federal Reserve's latest policy meeting, which fueled expectations for potential rate cuts in the US, leading to potential increased inflows into emerging markets.
Despite the initial optimism, the broader market exhibited mixed momentum, with the BSE Midcap index falling by 0.4 percent and the BSE Smallcap index rising by 0.5 percent. Vinod Nair, Head of Research at Geojit Financial Services, attributed this caution to subdued expectations for Q2FY25 results, citing a lackluster global and rural demand.
The Nifty Bank index outperformed, gaining over 1 percent, propelled by gains in HDFC Bank, Kotak Mahindra, and Axis Bank. This rise prevented the Nifty from slipping into negative territory. Conversely, the Nifty Pharma and Nifty Healthcare indices faced significant pressure, each dropping by 2 percent, with Sun Pharmaceutical Industries, Lupin, and Cipla leading the declines. The Nifty IT index also experienced a setback, falling over 1 percent ahead of TCS's quarterly results, scheduled to be announced after market hours.
Among the Nifty 50 constituents, HDFC Bank, JSW Steel, and Kotak Mahindra emerged as the top gainers, climbing between 1 and 4 percent. Conversely, Trent, Tech Mahindra, and Cipla experienced the steepest declines, falling between 2 and 3 percent.
Tata stocks attracted significant attention following the passing of Ratan Tata, the chairman emeritus of Tata Sons. Shares of Tata Chemicals and Tata Investment Corporation closed up by 4 percent and 5 percent, respectively.
Indian benchmarks have faced losses in seven of the last eight sessions, mainly due to concerns about escalating tensions in the Middle East and foreign fund outflows. Investors are now intently monitoring the upcoming US consumer price index data, scheduled for release later in the day, alongside earnings reports from Indian companies, starting with TCS. Stoxkart highlighted the importance of the consumer price index data, as it will provide insights into inflation trends and their impact on interest rates. Persistent inflation could limit the Fed's ability to swiftly cut rates.
Source: Sensex holds steady, Nifty 50 closes below 25,000; IT, pharma under pressure