Sensex and Nifty closed lower on October 15, dragged down by oil & gas, automobile, and metal stocks. A hotter-than-expected inflation report released on October 14 knocked investor confidence, tempering hopes of a December rate cut by the Reserve Bank of India.
By the end of trading, the Sensex had shed 153 points, or 0.2 percent, settling at 81,820, while the Nifty slipped 71 points, or 0.3 percent, to close at 25,057. About 1,967 shares advanced, 1,808 shares declined, and 106 shares remained unchanged.
India's retail inflation surged to a nine-month high in September, driven primarily by rising food prices, according to the latest government data. Annual inflation spiked to 5.5 percent in September, up from 3.7 percent in August.
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"CPI inflation for September coming worse than expected at 5.49 percent is a concern and the MPC will be forced to take this seriously and postpone the rate cut to 2025," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The Nifty Metal index sank 1.5 percent, extending its losing streak as Hindalco, Tata Steel, and Vedanta pulled the index lower.
Auto stocks also took a hit, with Bajaj Auto, Tata Motors, and Maruti Suzuki dragging the Nifty Auto index down by nearly 1 percent. Investors in the auto sector, which is heavily reliant on consumer loans, were spooked by the possibility of delayed rate cuts.
Reliance Industries (RIL) led the fall in both the Oil & Gas and Nifty 50 indices, tumbling over 2 percent after reporting a 4.8 percent drop in consolidated net profit for Q2 FY25, standing at Rs 16,563 crore.
Vinod Nair, Head of Research at Geojit Financial Services, said that the domestic market fell due to mixed global cues and partial profit-booking.
Also Read | Will inflation hold back RBI from cutting interest rates?
Brent crude futures tumbled over percent to $73.6 per barrel, aiding gains in oil marketing companies and paint stocks. Shares of Indigo Paints and Berger Paints rose over 2 percent each, while BPCL and HPCL surged 2.5 percent and 5 percent, respectively. However, as pointed out by Nair while lower crude prices benefit the Indian economy, they also point to weaker global demand.
In the broader market, the BSE Midcap index ended 0.3 percent higher, while the BSE Smallcap index gained over 1 percent.
Among the top gainers on the Nifty 50 were Britannia, ICICI Bank, and BPCL, each rising 1 to 2 percent. On the losing side, Wipro, Bajaj Auto, and HDFC Life all fell more than 3 percent.
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