Weak global cues weighed heavily on the Indian stock market today, resulting in a broad-based decline across sectors. The market ended the day at a one-month closing low, with 40 out of the 50 Nifty stocks closing in the red.

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The BSE Sensex, India's benchmark index, slipped 286 points to 65,226, while the Nifty dropped by 80 points to 19,449. The Nifty Bank index faced significant pressure, falling by 403 points to 43,997, and the Midcap Index declined by 554 points to 40,055.

Stock wise movements

Biggest losers on the Nifty were Axis Bank, SBI, IndusInd Bank, NTPC and UltraTech Cement, while gainers included Adani Enterprises, Nestle India, HUL, Eicher Motors and HDFC Bank.

Among sectors, except FMCG and Information Technology, all other indices ended lower with auto, capital goods, power, PSU bank, capital goods, healthcare, metal, realty down 1-3 percent.

Axis Bank was among the losers, falling over 4% following reports related to its Qualified Institutional Placement (QIP). The bank, however, categorically denied the accuracy of these reports, terming them as factually incorrect.

The financial sector, which includes banks, witnessed a broad-based fall, with three out of the top five Nifty losers belonging to this category. In contrast, HDFC Bank outperformed its peers, showing strength on the back of strong Q2 updates, with its stock rising by nearly 2%.

Maruti Suzuki extended its decline from the previous day due to weaker-than-expected monthly sales figures, resulting in a 2% drop in its stock price. Auto stocks had a mixed session, with Eicher Motors and Escorts managing to rise while other auto stocks experienced declines ranging from 2% to 3%.

The metal sector came under pressure due to falling prices in the global markets, resulting in a 1% decline in the Nifty Metal index. However, Adani Enterprises emerged as the top Nifty gainer after the International Finance Corporation (IFC) hiked its stake in the company by over 3%.

Nestle's stock price rose as the company announced plans to consider a stock split, coinciding with its upcoming results announcement. Strides Pharma also saw a 3% increase in its stock price following the approval of its HIV medicines by the US FDA.

Among midcap stocks, names in the non-banking financial company (NBFC) sector faced the most significant losses, with Indiabulls Housing Finance, M&M Financial Services, and L&T Finance Holdings being the top losers.

The decline in gold prices weighed on Muthoot Finance and Manappuram Finance, causing their stocks to fall by 2% to 5%. In contrast, Ramco Cements emerged as the top midcap gainer, rising by 4% to hit a record high.

Expert view

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, "The recent spike in U.S. Treasury yields has been taking a toll on equity markets globally, turning investors cautious in the near term. This along with persistent FIIs selling has pulled the Nifty down by 4% from a recent high of 20222 levels. We expect weakness to persist in the market in the coming weeks till the headwinds recede. The Q2 earnings season will start next week and is expected to maintain the growth momentum of previous quarters. Even the pre-quarterly updates released so far indicate healthy traction. Market direction going ahead will depend upon the combination of global/local macros and earnings delivery along with management outlook,"

First Published:Oct 4, 2023 3:48 PM IST