Sensex holds steady, Nifty 50 closes below 25,000; IT, pharma under pressure

The broader market displayed mixed signals, with the BSE Midcap index down 0.4 percent and the BSE Smallcap index up 0.5 percent.

The Indian benchmark indices were a mixed bag on the weekly expiry day of October 10. The Sensex closed in the positive territory, while the Nifty 50 index struggled to maintain its footing and settled into flat territory.

Indian benchmarks had opened in green following the release of minutes from the Federal Reserve's latest policy meeting, which bolstered expectations for potential rate cuts in the US which could lead to increased inflows into emerging markets.

At close, the Sensex was up 144 points or 0.2 percent at 81,611 and the Nifty was up 16 points or flat at 24,998.

"Domestic broader market momentum was mixed with caution as the initial expectation of Q2FY25 results is subdued due to a subpar momentum in the global and rural demand." said Vinod Nair, Head of Research, Geojit Financial Services.

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Nifty Bank gained over 1 percent led by HDFC Bank, Kotak Mahindra, and Axis Bank, preventing the Nifty from dipping into negative territory.

However, the Nifty Pharma and Nifty Healthcare indices faced significant pressure, each dropping 2 percent, with Sun Pharmaceutical Industries, Lupin, and Cipla leading the declines in these sectors. Meanwhile, the Nifty IT index snapped a four-day winning streak, falling over 1 percent ahead of TCS's quarterly results set to be announced after market hours.

The broader market displayed mixed signals, with the BSE Midcap index down 0.4 percent and the BSE Smallcap index up 0.5 percent.

On the Nifty 50, HDFC Bank, JSW Steel, and Kotak Mahindra emerged as the top gainers, climbing 1-4 percent. In contrast, Trent, Tech Mahindra, and Cipla faced the steepest declines, falling 2-3 percent.

Also Read | Equity inflows slow down to Rs 34,419 crore in Sept, small-cap funds still in demand: AMFI

Tata stocks drew significant attention following the passing of Ratan Tata, the chairman emeritus of Tata Sons, at the age of 86. Shares of Tata Chemicals and Tata Investment Corporation closed up by 4 percent and 5 percent, respectively.

Indian benchmarks have experienced losses in seven of the last eight sessions, primarily due to concerns over escalating tensions in the Middle East and foreign fund outflows. Investors are now closely monitoring the upcoming US consumer price index data, which is scheduled for release later today, alongside earnings reports from Indian companies, starting with TCS.

"The key focus has shifted to the consumer price index data due today, which will provide valuable insights into inflation trends and their implications for interest rates. Persistent inflation could limit the Fed's ability to rapidly cut rates," Stoxkart said.

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