Indian markets close lower amid global uncertainties; realty shines 

Indian stock markets ended lower on Tuesday, October 15, 2024, as concerns over global economic uncertainty and the ongoing West Asia conflict weighed on investor sentiment. The benchmark Sensex closed at 81,820.12, down 152.93 points or 0.19 per cent, while the Nifty50 index settled at 25,057.35, declining 70.60 points or 0.28 per cent.

The day’s trading session was marked by volatility, with key indices opening higher but failing to maintain momentum. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “Markets continue to remain volatile as key indices ended in the red after Monday’s upsurge, as fear of global economic uncertainty continues to weigh amid the ongoing West Asia conflict and the sharp drop in crude oil prices, which indicates a demand slowdown.”

Sectoral performance was mixed, with realty and FMCG finishing in the green, while metals and auto were among the top losers. The broader indices outperformed the benchmarks, with the small-cap index gaining over a per cent.

Top gainers on the NSE included BPCL (2.52 per cent), ICICI Bank (1.97 per cent), Bharti Airtel (1.32 per cent), Britannia (1.22 per cent), and Asian Paints (1.18 per cent). On the flip side, HDFC Life (-3.58 per cent), Wipro (-3.07 per cent), Bajaj Auto (-3.04 per cent), Bajaj Finance (-2.48 per cent), and Hindalco (-2.19 per cent) were the top losers.

Market breadth remained positive, with 2,068 stocks advancing and 1,890 declining on the BSE. A total of 258 stocks hit their 52-week highs, while 35 touched their 52-week lows.

At market close, ICICI Bank led the gainers among Sensex stocks, up 1.90 per cent at ₹1,255.45, followed by Bharti Airtel (+1.26 per cent) and Asian Paints (+1.01 per cent). Adani Ports and UltraTech Cement also rose slightly. On the losing side, Reliance (-2.09 per cent) and Bajaj Finance (-2.73 per cent) were the biggest decliners, while Tata Motors declined by 1.14 per cent, JSW Steel fell by 1.19 per cent, and Tata Steel dropped by 1.67 per cent.

Ajit Mishra, SVP of Research at Religare Broking Ltd, commented, “The markets remained volatile and ended slightly lower, continuing their ongoing corrective phase. After an initial rise, Nifty experienced a sharp decline and traded within a narrow range until the close, weighed down by weakness in heavyweights such as Reliance, Bajaj Auto, and TCS.”

Technical analysts observed the formation of a bearish candle on the daily chart. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, stated, “Technically, this market action is indicating presence of crucial resistance around 25200 and one may expect further range movement in the short term.”

The India VIX, a measure of market volatility, increased marginally by 0.06 per cent to 13.0025, suggesting a slight uptick in market uncertainty.

In the derivatives segment, options data showed the highest open interest on the call side at 25,100 and 25,200 strike prices, indicating strong resistance levels. On the put side, open interest was concentrated at 25,000 and 24,900 strike prices, highlighting these as key support levels.

Ameya Ranadive, Sr Technical Analyst at StoxBox, observed, “The benchmark index initially opened 58 points higher, but quickly faced selling pressure, resulting in an inability to maintain the early high. Subsequently, the index experienced a significant decline of 183 points within the first hour of trading.”

Despite the overall negative sentiment, the realty sector stood out, with the realty index closing over 2 per cent higher. Angel One was a notable gainer, jumping approximately 18 per cent on the back of strong Q2 financial performance.

Foreign portfolio investors (FPI) continued to be net sellers in the capital market, offloading shares worth ₹3,731.59 crore, with a total buy value of ₹9,364.16 crore and sales amounting to ₹13,095.75 crore. Domestic institutional investors (DII) were net buyers, purchasing shares worth ₹11,597.52 crore, while selling ₹9,319.43 crore, resulting in a net inflow of ₹2,278.09 crore. Other categories such as proprietary traders showed a positive net turnover of ₹276.76 crore, while Non-Resident Indians (NRIs) were net sellers by ₹15.40 crore.

As global uncertainties continue to impact market sentiment, analysts advise caution. Shrikant Chouhan, Head of Equity Research at Kotak Securities, suggested, “For day traders, 25000/81500 would be the immediate support zone. Above the same, we could see one quick pullback rally till 25200-25250/82300-82500.”