Nifty, Sensex fall, snap 2-day streak as pharma stocks decline; Auto stocks rise

FIIs sold Rs 548 crore in cash markets on October 29, significantly lower than Rs 3,228 crore sold the previous day.

Benchmark indices Nifty and Sensex were off to a weak start on the bourses on October 30 following a two-day rally. The dip comes despite positive global cues where Nasdaq hit a fresh record high and Asian markets also ended in the green.

At about 9:20 am, the Sensex was down 181.23 points or 0.23 percent at 80,187.80, and the Nifty was down 60.30 points or 0.25 percent at 24,406.50. About 1,775 shares advanced, 782 shares declined, and 108 shares unchanged.

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"While the sentiment in the past few weeks has been quite negative, strong liquidity and FIIs selling gradually reducing has helped markets regain slight momentum. If Nifty sustains the 24,360 mark, the expectation is that the market will remain in the positive strategy," Kranthi Bathini, Director of Equity Strategy at WeallthMills Securities, said.

To be sure, FIIs sold Rs 548 crore in cash markets on October 29, significantly lower than Rs 3,228 crore sold the previous day. Domestic investors were net buyers yet again, purchasing Rs 730 crore in the cash markets.

Also read: Maruti Suzuki Q2: Brokerages worry as demand concerns for entry-level cars loom

As for stocks, India's largest four-wheeler manufacturer Maruti Suzuki was buzzing in trade following its weaker-than-expected second quarter earnings. The stock gained over 2 percent in the opening trade even as brokerages are cautious as demand for entry-level cars looms. The Maruti stock has slipped 18 percent in the past month.

As for the broader market, comprising mid and small caps, showcased a mixed performance. While the midcap index fell 0.2 percent, the smallcap index rallied almost one percent. The two have fallen up to 6 percent in the past month as a host of experts cautioned against expensive valuations. India VIX, a barometer to assess market anxiety, notched up by 3 percent to hover around the 15 levels.

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"Observing the intraday chart, a strong base formation is evident, suggesting a continued buy-on-dip strategy with 24100 as a key support level. Although bulls remain optimistic amid the festive week, caution is advised as the market remains uncertain, and booking profits at higher levels is prudent," Sameet Chavan, Head of Technical and Derivate Research at Angel One, said.

He added that improved market sentiment has been fueled by strong gains in select stocks, with the banking sector leading the charge this earnings season. However, a few stocks have faced pressure from missed earnings expectations, underscoring the importance of careful stock selection to spot potential outperformers.

Among sectors, Nifty Auto was the top gainer, rising almost a percent higher after Maruti Suzuki, Tata Motors, Bajaj Auto and Hyundai Motor lifted the sentiment. The FMCG index also rose, albeit marginally. Pharma and Healthcare index tanked 2 percent each.

Maruti Suzuki, BEL, Bajaj Auto, IndusInd Bank, and Tata Motors were the top gainers on the Nifty. Cipla, Dr Reddy's, Sun Pharma, Shriram Finance, and SBI Life Insurance were the top losers.

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