Sensex slips over 150 pts, Nifty below 24,800; metals extend rally, autos slip

Indian markets started October 3 on a quiet note with Sensex and Nifty easing

Indian benchmark indices opened October 3 on a subdued note, cooling off after Wednesday’s RBI-driven surge. Auto stocks took a breather in early trade, while pharma and metal counters saw continued investor interest.

Around morning the Sensex had slipped 192 points, or 0.24 percent, to 80,791, while the Nifty was down 60 points, or 0.24 percent, at 24,776. Market breadth was mixed, with 1,663 shares advancing, 1,023 declining, and 176 remaining unchanged.

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Broader markets outperformed the frontline indices. The Nifty Midcap 100 extended gains for a second session, while the Smallcap 100 rose for a third straight day. Meanwhile, India VIX, the volatility gauge, climbed 3 percent, hinting at rising caution among traders.

Sectorally, metals continued their winning streak, rising for a third consecutive session. Gains in Tata Steel, Hindustan Copper, SAIL, JSW Steel, Vedanta, and NALCO kept the Nifty Metal index in the limelight. Financials and pharma stocks also remained on investors’ radar.

On the other hand, auto stocks were choppy following monthly sales data, while FMCG and IT stocks stayed under pressure.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said foreign institutional investors (FIIs) are likely to step up selling as the current market construct gives them room to sell aggressively. “The large short positions suggest that bulls will be on the defensive. Strong buying by domestic institutional investors (DIIs) could lend support, especially in largecap auto names, where fundamentals remain strong,” he added.

From a technical view, Amruta Shinde, Technical & Derivative Analyst at Choice Broking, said a sustained move above 24,900 could open the door for Nifty to test 25,000 and 25,150. On the downside, immediate support is seen at 24,750 and 24,600, which may serve as potential entry levels for long trades.

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