The Sensex and Nifty closed in the red for the third consecutive session on October 17, weighed down by relentless selling from foreign investors, a lacklustre earnings season, and geopolitical tensions. Today's trading was particularly brutal for the banking and auto sectors, with the Nifty Auto index suffering a dramatic plunge of over 3 percent following Bajaj Auto reducing its festive season sales growth guidance to 3-5 percent—well below the anticipated 8 percent. Shares of the two-wheeler closed over 13 percent lower.
At close, the Sensex was down 494 points or 0.6 percent at 81,006 and the Nifty was down 221 points or 0.9 percent at 24,749. About 1,199 shares advanced, 2,580 shares declined, and 101 shares remained unchanged.
Analysts expressed their discontent with the earnings reports from heavyweight companies such as Reliance Industries, TCS, and Bajaj Auto. "While the overall optimism about earnings hasn't completely faded, the initial outlook is certainly not encouraging," said Ajit Mishra, SVP of Research at Religare Broking. "For a meaningful market recovery, both IT and banking must maintain their strength."
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The Nifty Auto index witnessed a widespread sell-off, with every component tumbling between 0.5-13 percent. Tyre stocks were also hit, with CEAT, Apollo Tyres, and JK Tyres all dropping over 2 percent.
Nifty Realty, which had shown resilience over the past three sessions, also took a hit today, declining more than 3 percent with Godrej Properties and DLF at the forefront of the losses.
The broader market wasn't spared either, as BSE Midcap and BSE Smallcap indices both fell by 1.5 percent.
Amidst this bloodbath on Nifty's weekly expiry, Nifty IT defied the trend, gaining over 1 percent, driven by Infosys and Tech Mahindra. Investors are keenly awaiting Infosys and Wipro's Q2 FY25 earnings, slated for release after market hours today, and Tech Mahindra's figures due on October 19.
Also Read | Infosys Q2 net profit rises to Rs 6,506 crore, misses estimates; Rs 21 per share dividend declared
On the Nifty 50, Power Grid, Tech Mahindra, and Infosys led the gains, rising between 1-3 percent. In contrast, Mahindra & Mahindra, Shriram Finance, and Bajaj Auto experienced significant declines, falling between 3.5 percent and 13 percent.
Rupak De, Senior Technical Analyst at LKP Securities said that Nifty has currently found support in the 24,700–24,750 range. "A decisive fall below 24,700 could lead to a significant correction in the market."
Market participants are also keeping a close eye on key US economic data releases, including September retail sales, industrial production figures, and weekly jobless claims, all set to drop later today.
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