The 30-share BSE Sensex fell 553 points, or 0.69%, to close at 79,389, while the broader NSE Nifty dropped 135 points, or 0.56%, to finish at 24,205.
Despite the dip in blue-chip indices, the market capitalization of all listed companies on the BSE rose by Rs 9 lakh crore to reach Rs 445.1 lakh crore, driven by gains in the broader market.
Tech Mahindra, HCL Tech, TCS, and Infosys led the losses on the Sensex, declining between 2.5% and 4.5%. Other laggards included Asian Paints, Maruti Suzuki, ICICI Bank, and Adani Ports. In contrast, L&T, Power Grid, JSW Steel, M&M, and HDFC Bank closed with gains.
L&T shares rose 6.4% after the company reported a profit boost for the September quarter, driven by accelerated project execution.
Cipla shares also surged 9.6% following the United States Food and Drug Administration’s (USFDA’s) classification of its Goa facility inspection as Voluntary Action Indicated (VAI).On the sectoral front, Nifty IT index fell 3%, with all 10 constituents in the red. The IT index has been one of the outliers this month until this session, dropping only 0.7% compared to 5.7% for the Nifty 50.Technology stocks across Asia dropped on the day after Facebook owner Meta Platforms projected sharp acceleration in artificial intelligence costs.
The market breadth was skewed in favour of the bulls. About 2,253 stocks gained, 1,262 declined, and 111 remained unchanged on the BSE.
Expert Take
“The key benchmark indices traded with mild cuts while experiencing a broader sell-off in the technology sector due to weakness in the US IT companies, which has led the domestic IT companies to come under the shadow of underperformance,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Investors remain cautious owing to weak domestic earnings for Q2. However, the market expects the momentum to reverse in H2 due to a rebound in core sector data and government spending, which are likely to influence the Samvat 2081 investment strategy,” Nair added.
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty index remained volatile before closing on a negative note. On the hourly chart, it encountered resistance around the 21 EMA, leading to a pullback toward 24,200. Sentiment may continue to remain weak as long as Nifty stays below 24,500, with any rise toward this level likely facing selling pressure. On the downside, support is placed at 24,000, while resistance levels are seen at 24,500 and 24,750.”
Global Markets
Global shares slid on Thursday, after Facebook owner Meta Platforms and Microsoft both warned of accelerating costs for artificial intelligence, while evidence of strong US economic growth kept the dollar underpinned.
S&P 500 futures eased 0.8%, while Nasdaq futures fell 1.0%, suggesting more losses on Wall Street at the open. Shares in Microsoft and Meta, which have risen 15% and 67%, respectively, so far this year, fell in premarket trading by 3.5-4.0%.
In Europe, the STOXX 600 fell in early trading, in a heavy day for earnings, as a drop in shares of French lender BNP Paribas after results and in tech stocks like ASML and SAP offset a bounce in energy and the wider banking sector.
Japan’s Nikkei share average closed down 0.5%. South Korea’s Kospi dropped 1.5%, shrugging off a late recovery in shares in Samsung after the consumer electronics company said it was making headway in AI chip supply.
Oil Prices Rise
Oil prices edged up on Thursday, extending the previous day’s rally, driven by optimism over US fuel demand following an unexpected drop in crude and gasoline inventories, while reports that OPEC+ may delay a planned output increase offered support.
Brent crude futures gained 11 cents, or 0.15%, to $72.66 a barrel. U.S. West Texas Intermediate crude futures climbed 13 cents, or 0.19%, to $68.74 per barrel.
Rupee Near Record Low
The Indian rupee ended near an all-time low against the dollar on Thursday amid outflows from equities and anxiety over the outcome of the U.S. election, but the central bank’s intervention kept the local currency in a narrow range through October.
The rupee closed at 84.0750 against the U.S. dollar, nearly unchanged from its close of 84.0775 on Wednesday. Indian currency market will remain closed on Friday for a public holiday.
(With inputs from agencies)
