Sensex Adds 484 Points, Nifty 50 Settles Above 25,700 Amid Buying In Heavyweights

Domestic benchmark indices extended gains for the third consecutive session on October 17, briefly hitting their new 52-week highs, led by gains in heavyweight stocks.

At close, Sensex was at 83,952.19, up 484.53 points, or 0.58 per cent, Likewise, Nifty 50 closed at 25,709.85, up 124.55 points, or 0.49 per cent.

Broader market indices, however, underperformed the benchmarks and closed lower. Nifty Midcap 100 lost 0.57 per cent, Nifty Smallcap 100 closed flat-to-negative, while Nifty 500 managed to close slightly higher in the positive territory, up 0.15 per cent.

Vinod Nair, head of research at Geojit Investments, said the rally was driven by consumption-focused stocks on expectations of better volume growth. He added that stable earnings from banks and easing concerns over asset quality have lifted overall market sentiment.

Meanwhile, crude oil prices fell after US data showed inventories rose for the third straight week, up by 3.5 million barrels as production increased. A the time of filing this report, the West Texas Intermediate (WTI) crude oil futures traded 0.44 per cent lower at $57.21 per barrel. Likewise, Brent crude oil futures declined 0.49 per cent to $ 60.76 per barrel.

FMCG Gains, IT Loses

Nifty FMCG emerged as the top sectoral gainer, rising 1.37 per cent. Nifty Auto, Nifty Bank, Nifty Financial Services, Nifty Pharma, Nifty Healthcare, and Nifty Consumer Durables also ended higher, gaining between 0.5 per cent and 1 per cent.

On the losing end was Nifty IT, falling 1.63 per cent. IT stocks came under pressure due to concerns about reduced discretionary spending and growing asset quality risks in the US banking sector.

Nifty metal and Nifty PSU Bank also lost 0.85 per cent and 0.65 per cent, respectively. Nifty Energy also fell 0.21 per cent, while Nifty Oil & Gas closed flat-to-positive.

Nifty 50: Top Gainers & Losers

From the Nifty 50 index, Asian Paints gained 4.07 per cent, Mahindra & Mahindra rose 2.67 per cent, Bharti Airtel advanced 2.31 per cent, and Max Healthcare gained 2.19 per cent. Hindustan Unilever, ITC, Reliance industries, Tata Consumer Products, ICICI Bank, Dr Reddy's Laboratories, and Sun Pharma gained between 1 per cent and 2 per cent.

On the other hand, Wipro fell 5.17 per cent to emerge as the biggest loser in today's session. Infosys fell 2.08 per cent, Eternal (formerly Zomato) declined 1.47 per cent, Tata Steel dipped 1.44 per cent, HCL Technologies tumbled 1.20 per cent, Tech Mahindra slipped 1.16 per cent, and Hindalco fell 1.04 per cent.

Market Outlook

Two US banks, Zions Bancorp and Western Alliance, reported bad and fraudulent loan issues on October 16, raising fresh concerns about credit quality. This follows the bankruptcy of First Brands, which revealed risky financing and missing assets worth billions, leading to a federal probe. Market participants will be tracking this space for any further signs of rising stress in the US banking system.

Domestically, market participants will also track quarterly results from Reliance Industries, HDFC Bank, and ICICI Bank over the weekend, which could set the tone markets on October 20.