Mumbai, October 2, 2024 – The Indian stock markets, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), remain closed today in observance of Mahatma Gandhi Jayanti. Investors will return to trade on Thursday, October 3.
On Tuesday, the markets extended their losing streak for a third consecutive session, driven by profit-booking in sectors such as oil & gas and select FMCG shares. The BSE Sensex fell by 33.49 points, settling at 84,266.29, while the NSE Nifty dropped 13.95 points, closing at 25,796.90.
Global Market Trends and Foreign Outflows Impact Indian Equities
Muted trends in global markets and significant foreign fund outflows have dampened investor sentiment. Since Friday, the Sensex has fallen by nearly 1,570 points, or 2%, while the Nifty has declined by 419 points, or 1.6%. Analysts attribute this to funds being shifted towards more affordable Chinese stocks following stimulus measures announced by China’s central bank.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The shift in funds to cheaper Chinese markets, along with the potential for an interest rate hike by the Bank of Japan due to recent political developments, could impact the domestic markets in the near term.”
IT Sector Provides Support Amid Losses
Despite the broader market decline, the IT sector bucked the trend, with Tech Mahindra rising 2.93%, leading gains among the Sensex constituents. Mahindra & Mahindra also saw an increase of 2.22% following strong September sales data. Kotak Mahindra Bank, Infosys, and HCL Technologies were among the major gainers that helped trim market losses.
Key Movers on October 1
Several individual stocks saw significant movements during Tuesday’s volatile session. Paytm surged 5.7% after Dolat Capital upgraded its target price for the stock, highlighting its path to EBITDA breakeven by the fourth quarter of FY25. National Aluminium Company gained 6.5% following an upgrade by Kotak Institutional Equities, citing an attractive risk-reward profile.
On the flip side, Asian Paints fell by 1.6% amid concerns over weak demand for paints and adhesives in the second quarter. Bajaj Auto and Jubilant FoodWorks also faced declines due to profit-booking and tax-related issues, respectively.
Sectoral Performance
The BSE small-cap index climbed by 0.56%, while the mid-cap index rose by 0.27%. Among sectors, telecommunications (-0.86%), oil & gas (-0.71%), and realty (-0.24%) registered losses, while IT (+1.05%), teck (+0.72%), and consumer durables (+0.41%) showed gains.
Manufacturing Growth Slows
India’s manufacturing sector witnessed a slowdown in September, with the Purchasing Managers’ Index (PMI) dropping to 56.5, its weakest pace in eight months. A PMI reading above 50 indicates expansion, but the decline from August’s 57.5 reflects softer growth in factory production and new export orders.
As investors gear up for the reopening of markets on Thursday, the focus remains on global market trends and domestic economic data that could steer market sentiment in the days ahead.
Stay tuned to ibizznews.com for further updates.
