Indian stock markets ended on a subdued note Thursday, with indices slipping as foreign portfolio investors (FPIs) intensified their sell-off, and domestic earnings for the July-September quarter fell short of expectations. The Sensex closed down by 553.12 points, or 0.69%, at 79,389.06, while the Nifty ended at 24,205.35, shedding 135.50 points or 0.56%.
Sector-wise, most indices finished in the red, with the Nifty IT sector experiencing the sharpest decline of 3.03%. FPIs sold over ₹91,000 crore worth of Indian equities in October alone, making it the worst month for outflows in history. This marked a stark reversal from the previous four months, during which FPIs were net buyers and fueled a bull run in the Indian stock markets.
Ajit Mishra, Senior Vice President of Research at Religare Broking, observed that early weakness in IT heavyweights set the tone for the day’s bearish sentiment, with additional sectors joining the downward trend. “Select heavyweight stocks showed resilience, helping to limit the day’s losses. Despite the decline in benchmark indices, there are promising opportunities in specific sectors, and traders should adjust strategies with an emphasis on risk management,” Mishra noted.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the sharp decline in technology stocks to a broader sell-off stemming from weak performance among US IT companies, which has impacted investor sentiment around domestic IT firms. “With a muted Q2 earnings season domestically, investors are adopting a cautious approach,” he said.
Trading will take a break on Friday for a market holiday, although stock exchanges will conduct a special one-hour Muhurat trading session from 6 pm to 7 pm, with a pre-market opening at 5:45 pm. This traditional session, considered an auspicious time for investments, has been observed for centuries with the belief that it brings prosperity to investors.
Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher, shared an optimistic outlook based on historical data. “Over the past decade, Muhurat trading sessions have closed in the red only three times, suggesting potential festive cheer in the upcoming trading days,” Kasat said.
Investors now await upcoming sessions to see if the markets will rally, bolstered by the festive season’s positive sentiment and the tradition of Muhurat trading.