Sensex, Nifty reverse morning losses to close higher as financials take the lead

Despite being weighed down by muted Q2 earnings and relentless FII outflows, the Indian market has found some reprieve as Middle East tensions ease and crude prices decline.

The Sensex and Nifty staged a strong recovery in the second half of the trading session on October 29, closing higher thanks to gains in financial and construction stocks. In contrast, the auto, IT, and pharma sectors faced selling pressure.

At close, the Sensex was up 363 points or 0.5 percent at 80,369, and the Nifty was up 127 points or 0.5 percent at 24,466. About 2,171 shares advanced, 1,533 shares declined, and 121 shares remained unchanged. The broader market joined the rebound, with the BSE Midcap and Smallcap indices each up by 0.7 percent.

"Support for Nifty is seen at 24,100 (with strong put writing near 24,000), while resistance lies at 24,500. A close above 24,500 could open the door to 25,000–25,200, supporting a bullish outlook for at least the next week and a half," said Jigar Patel, Senior manager of Equity Research at Anand Rathi Shares & Stock Brokers.

The Indian benchmarks opened flat but initially dipped into the red amid concerns over Q2FY25 earnings, persistent FII selling, and a sell-off in auto and IT stocks.

Follow our live blog for all the market action

Akshay Chinchalkar, Head of Research at Axis Securities, said that both buyers and sellers are uncertain about the short-term trend amid the ongoing correction. This hesitation is typical given the upcoming event risks, including November 1's non-farm payroll report and the US elections.

Despite being weighed down by muted Q2 earnings and relentless FII outflows, the Indian market has found some reprieve as Middle East tensions ease and crude prices decline.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the recent market correction has alleviated overvaluation, especially in defence and railway stocks. He noted that the shift towards quality, evident in private financials, is a trend likely to persist.

Also Read | As Samvat 2081 kicks off, discover the sectors that remain undervalued

Today, the top Nifty gainers included SBI, SBI Life, ICICI Bank, HDFC Life, and Bharat Electronics, each up between 3 percent and 5 percent. Meanwhile, Maruti Suzuki, Tata Motors, Hero MotoCorp, Dr. Reddy's, and IndusInd Bank emerged as the major laggards, falling 2-4 percent.

ICICI Bank, HDFC Bank, and SBI spearheaded gains in the financial sector, with SBI surging over 5 percent to become the top gainer on Nifty 50.

While FII selling continues to exert pressure on the Indian market, Aishvarya Dadheech, Founder & CIO of Fident Asset Management, believes that strong results from ICICI Bank and several PSU banks could offer some stability as Diwali approaches.

The auto index experienced a nearly 1.6 percent decline, driven by selling pressure in Tata Motors, Maruti Suzuki, and Mahindra & Mahindra. Maruti Suzuki's shares fell nearly 4 percent following an 18 percent drop in net profit for Q2FY25, negatively impacting sentiment in the auto sector.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.