Sensex, Nifty in red as most sectoral indices drown in losses

In broader markets, the BSE Midcap index dropped over 0.5 percent, while the Smallcap index nosedived by more than 1 percent.

Domestic equity benchmarks, Sensex and Nifty 50, tumbled on October 18, as a broad sell-off gripped the markets. FMCG, IT, and oil & gas stocks spearheaded the decline in Nifty amid mixed global cues and persistent FII selling.

At 9:40 AM, the Sensex was down 386 points or 0.5 percent at 80,620, and the Nifty was down 107 points or 0.4 percent at 24,642. About 823 shares advanced, 2,111 shares declined, and 118 shares unchanged.

In the previous session, Indian benchmarks extended their losing streak for a third consecutive day, with the Nifty 50 closing below 24,800. Persistent FII selling, weak earnings from marquee companies, and geopolitical concerns have been impacting investor sentiment.

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"It (the selling by FIIs) could last a while, especially with geopolitical factors like the Canada-India row coming into play. While it's not affecting trade immediately, prolonged tension could eventually have an impact," said Ambareesh Baliga, an independent market analyst.

Anand James, Chief Market Strategist at Geojit Financial Services said that Nifty's three-day close below the 50-day SMA (Simple Moving Average) signals further weakness. James sees the next support levels for Nifty at 24,300 and 23,900.

In broader markets, the BSE Midcap index dropped over 0.5 percent, while the Smallcap index nosedived by more than 1 percent.

On the Nifty 50, stocks like Infosys, Titan Company, ITC, BPCL, and Nestle were hardest hit, tumbling 1-3 percent. In contrast, Wipro, Axis Bank, Eicher Motors, Tata Motors, HDFC Life defied the selloff, posting gains of 1-4 percent.

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Infosys shares plunged nearly 4 percent after its September quarter earnings missed expectations, while Wipro surged almost 5 percent, buoyed by better-than-expected net profit, revenue, and EBIT margin.

Asia-Pacific markets mostly rose as investors digested key economic data from China and Japan's inflation numbers. China's third-quarter GDP growth rate came in at 4.6 percent, the lowest since mid-2022, falling short of Beijing's 5 percent target. House prices dropped 5.8 percent in September, a steeper decline than August's 5.3 percent. Meanwhile, Japan's inflation in September showed headline CPI at 2.5 percent and core CPI at 2.4 percent year-on-year.

Overnight in the US, the Dow Jones Industrial Average rallied to a new record close after strong economic data eased lingering fears of a potential recession. Meanwhile, the S&P 500 and Nasdaq Composite closed flat.

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