Pharmaceutical and financial stocks dragged Indian benchmarks lower, while hotter-than-expected US inflation raised concerns that interest rates could remain elevated for longer.
Indian equities are set for another cautious session after a weak close on Wednesday, as selling pressure in pharmaceutical and financial shares dragged the market lower. The Sensex fell 251.89 points, or 0.34%, to 72,781.89, while the Nifty 50 slipped 99.25 points, or 0.44%, to 22,622.70. Bank stocks also lost ground, with the Bank Nifty ending at 55,316, down 165.05 points, or 0.30%.
The softer tone followed a mixed lead from Wall Street, where investors reacted to a hotter-than-expected reading on US consumer prices. Reuters reported that the latest inflation data lifted bond yields and revived concern that the Federal Reserve may need to keep interest rates higher for longer. By the time of the Indian market close, the Nasdaq Composite was lower, the S&P 500 had also slipped, and the Dow was marginally higher.
That comes after a firmer session on Monday, when Indian shares rose on strength in information technology and banking stocks. Business Standard reported that the Sensex and Nifty both closed higher on October 14, 2024, with gains led by names such as HDFC Bank, Larsen & Toubro and Infosys, while metal and energy shares lagged. The contrast between the two sessions underscores how quickly sentiment is shifting between defensive buying and profit-taking.
Earnings announcements are likely to keep individual stocks active. Bharat Heavy Electricals reported a sharp rise in quarterly profit and stronger revenue, while HDB Financial Services posted double-digit profit growth and announced an interim dividend. Tata Technologies reported a decline in net profit, even as revenue edged higher. Other updates pointed to mixed fortunes across sectors: Bajaj Consumer Products delivered a robust earnings increase, CEAT reported weaker profit despite stronger sales, and ICICI Lombard Insurance saw profit and premium income rise.
A busy corporate and regulatory calendar is also shaping stock-specific interest. Companies including Hyundai Motor India, Lloyds Metals, NLC India, Mphasis and Dr Reddy’s Laboratories disclosed project, fundraising, tax and regulatory updates. Reliance Industries’ Jio Platforms filed its red herring prospectus for an initial public offering opening later this month, adding another major listing to watch. In the derivatives market, the October Nifty futures contract was quoted lower, while the 22,000 and 23,000 strike levels drew the heaviest put and call open interest respectively, suggesting traders are still positioning for a range-bound move.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
