Bulls take breather: Nifty, Sensex snap 7-session winning streak on expiry day, FMCG stocks disappoint

Laggards on the index were HUL, Bharti Airtel, Eicher Motors, ICICI Bank, and Eternal.

Bulls hit the pause button on April 24, as benchmark indices Nifty 50 and Sensex snapped their seven-session winning streak. A volatile expiry-day session and sharp losses in the FMCG pack weighed on sentiment, pulling the markets lower.

At close, the Sensex slipped 314.50 points, or 0.39 percent, to end at 79,801.99, while the Nifty shed 84.25 points, or 0.35 percent, to settle at 24,244.70. Market breadth was nearly even, with 1,669 stocks advancing, 1,769 declining, and 116 remaining unchanged.

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The FMCG index was the day's worst performer, sinking over one percent following disappointing earnings from heavyweights like Hindustan Unilever Ltd., Nestle India, and Tata Consumer Products. In contrast, the Nifty Pharma index surged nearly one percent, powered by gains in Natco Pharma, Divi's Laboratories, and Ajanta Pharma, which rose up to 12 percent. Nifty Auto, Bank, IT, and Realty also ended lower in the range of 0.4 to 1.4 percent.

Broader markets mirrored the weak trend. The Nifty Midcap 100 index slipped 0.2 percent, while the Nifty Smallcap 100 closed marginally lower, giving up some gains after a sharp rally in recent sessions.

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Volatility remained elevated as traders rolled over April F&O positions, with the India VIX index rising two percent to 16.30, signalling increased market nervousness.

"Foreign investors have pivoted to net buyers in the cash market (Rs 21,000 crore in net buying since the April 7th lows) while gradually covering their short positions in index futures. However, they still hold 67 percent net shorts. This shift suggests markets may find buying support at lower levels during pullbacks," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

In stock-specific action, shares of FMCG bellwether Hindustan Unilever Ltd. tumbled sharply after its March quarter results showed margin guidance falling short of Street expectations.

Syngene International Ltd. also took a beating, with its shares plunging 10 percent after the company reported a three percent year-on-year decline in consolidated net profit to Rs 183 crore for Q4 FY25, down from Rs 189 crore in the same quarter last year.

Looking ahead, analysts caution that stretched valuations—Nifty is trading at over 20 times estimated FY26 earnings—could cap the rally.

"In the very short term, the market will respond to the ongoing earnings season. But as we move forward, investor sentiment may be influenced by India’s response to the recent terror attacks and their broader implications. Investors must remain cautious, even while staying invested," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Given the overbought conditions, we advise against chasing momentum at higher levels. Instead, yesterday’s price action reinforces our view to adopt a ‘buy on dips’ approach. Immediate support lies around 24,150–24,100, while key support is placed in the 24,000–23,900 zone, aligning with the 200SMA and recent breakout levels," Sameet Chavan of Angel One said. He added that on the higher side, resistance is seen near 24,550, which marks the 61.8 percent retracement of the decline from the all-time high. Sector-wise, the banking pack witnessed profit booking after its recent surge.

IndusInd Bank, UltraTech Cement, Grasim, Tata Motors, and Dr Reddy's were the top gainers on the Nifty. Laggards on the index were HUL, Bharti Airtel, Eicher Motors, ICICI Bank, and Eternal.

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