The Sensex and Nifty closed flat on October 9, weighed down by declines in heavyweights like RIL and HDFC Bank which slid 1 percent each. This marked a stark shift after the indices had remained resilient throughout the day, buoyed by the Reserve Bank of India's decision to hold rates steady while softening its policy stance to 'neutral'—hinting at the possibility of future rate cuts.
"An upward revision in Q3FY25 inflation (to 4.8 percent from 4.7 percent) reiterates that the sticky inflation continues to remain a concern for the RBI and led investors to book profit towards the close," said Vinod Nair, Head of Research, Geojit Financial Services.
At close, the Sensex was down 167 points or 0.2 percent at 81,467 and the Nifty was up 5.8 points or 0.02 percent at 25,019. About 2,580 shares advanced, 1,201 shares declined, and 93 shares remained unchanged.
Market jitters also surfaced as investors braced for China's upcoming fiscal policy briefing on October 12 to provide new stimulus measures to revive the world's second-largest economy.
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FMCG and energy stocks weighed down the market, while gains in the banking, IT, and auto sectors offered some respite.
The IT index jumped 0.7 percent, extending its winning streak for the fourth consecutive session. Optimism was fueled by US labour market data that eased recession fears, providing a boost to the sector, which relies heavily on American revenue streams.
The Nifty Bank index edged up 0.1 percent, supported by gains in ICICI Bank, SBI, and Axis Bank.
The auto index also gained with Tata Motors, Maruti Suzuki, and Exide Industries lifting the index nearly 1 percent, continuing its momentum from the previous session.
However, it was the realty sector that stole the show and rose over 2 percent as stable rates ensure consistent EMIs and instil confidence among homebuyers. "The policy stability bodes well in the ongoing festive season which promises to be a significant phase in terms of real estate demand as the industry is hopeful of the continued rise in residential sales," said Pradeep Aggarwal, Founder & Chairman of Signature Global (India).
Also Read | Experts pick top 10 rate-sensitive stocks as RBI keeps repo rate unchanged, shifts stance to 'neutral'
On the flip side, the FMCG sector faced headwinds. The Nifty FMCG index slid over 1 percent, dragged down by losses in ITC, HUL, and Nestle, which shed between 1-2 percent. Nair attributed the sell off in FMCG stocks to the volatility in input prices.
The broader market outperformed, with both the BSE Midcap and Smallcap indices climbing over 1 percent each, adding to the day's upbeat sentiment.
On the Nifty 50, Cipla, Trent, Tata Motors, SBI, and Tech Mahindra led the gainers, climbing 1-2.5 percent. Meanwhile, ITC, Nestle, ONGC, RIL, and HUL were the biggest laggards, dropping between 1-3 percent.
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