Mumbai: Indian equity indices closed lower for the second consecutive session on Thursday, pressured by sustained foreign institutional investor selling and declines in metal and power stocks, despite pockets of resilience in consumer goods and automobiles. The downturn reflected a prevailing risk-off sentiment, as global uncertainties and mixed corporate earnings kept investors on the sidelines.
The S&P BSE Sensex declined 148.14 points, or 0.18%, to close at 83,311.01. The Nifty 50 index fell 87.95 points, or 0.34%, to settle at 25,509.70.
| Index | Close | Change (Points) | % Change | Day's Range |
|---|---|---|---|---|
| BSE Sensex | 83,311.01 | -148.14 | -0.18% | 83,237.65 - 83,846.35 |
| Nifty 50 | 25,509.70 | -87.95 | -0.34% | 25,400 - 25,600 |
| Nifty Bank | 57,554.00 | -273.00 | -0.47% | 57,300 - 57,800 |
| BSE SmallCap | 53,057.00 | -825.00 | -1.53% | 52,800 - 53,900 |
| BSE Midcap | 46,650.61 | -563.00 | -1.19% | 46,400 - 47,200 |
| BSE-500 | 37,600.00 | -200.00 | -0.53% | 37,400 - 37,800 |
| Nifty 500 | 23,800.00 | -200.00 | -0.83% | 23,600 - 24,000 |
| India VIX | 12.41 | -0.24 | -1.92% | 12.06 - 12.87 |
Sector Deep Dive:
Consumer durables and automobiles provided some counterbalance in an otherwise weak market. The Nifty Auto index rose 0.8%, supported by Mahindra & Mahindra's 2.5% gain following positive quarterly updates on SUV demand and rural recovery. The Nifty FMCG index advanced 0.6%, led by Asian Paints, which surged 4.64% after reporting a 32% profit increase to ₹10,053 crore, driven by strong festive sales and margin expansion.
However, metals and power sectors dragged the indices lower. The Nifty Metal index slumped 2.3%, with Hindalco Industries falling 5.2% amid concerns over global commodity prices and input cost pressures. The Nifty PSU Bank index declined 1.5%, pressured by Power Grid Corporation's 3% drop following its earnings, which highlighted operational challenges.
The Broader Market & Volatility
Mid- and small-cap segments lagged significantly, amplifying the downside. The Nifty Midcap 100 fell 0.95% to 59,469, while the Nifty Smallcap 100 dropped 1.39%, both underperforming the Nifty 50 as foreign outflows hit smaller firms harder. The India VIX eased 1.92% to 12.41, signaling a modest reduction in expected volatility, though levels remain elevated amid ongoing uncertainties.
Global & Domestic Catalysts
International markets showed divergence, with European shares slipping on tech sector nerves and anticipation of the Bank of England's rate decision. The FTSE 100 and DAX declined 0.5% and 0.7% respectively in recent sessions, while Asian peers were mixed: the Nikkei edged lower by 0.1%, and the Hang Seng gained 0.2%. U.S. futures for the Dow and S&P 500 hovered flat to slightly lower following upbeat economic data. The rupee strengthened 8 paise to 88.62 against the U.S. dollar, offering minor support to importers, while Brent crude rose 0.17% to $63.63 a barrel on eased glut fears.
At home, foreign institutional investors remained net sellers, offloading ₹1,067 crore on November 4 (latest provisional data), while domestic institutions bought ₹1,203 crore to provide a buffer. Earnings announcements were in focus, with Life Insurance Corporation of India posting an 18% profit rise to ₹643 crore on premium growth, and UPL swinging to a quarterly profit amid strong Americas demand. Analyst downgrades in metals added to the pressure.
Expert Commentary
"The persistent FII outflows are testing market resilience, but DII buying and selective earnings beats in defensives like FMCG are capping deeper losses. With global policy decisions looming, expect continued choppiness."
Outlook for Tomorrow:
Eyes will be on quarterly results from firms like Britannia Industries and Sun Pharma, which could impact consumer and pharma sectors. The Bank of England's interest rate call may influence global risk appetite. Technically, the Nifty 50 has support at 25,400, with resistance at 25,600; a hold above support could stabilize sentiment, but a break lower might target 25,200.