Closing Bell: Sensex loses 78 points in volatile trade, Nifty closes below 17,900-level

The Indian market on Tuesday witnessed a marginal drop at the closing, with Sensex slipping over 78 points while Nifty50 fell below 17900-level during range-bound trading. The decline was mainly led by metal stocks and Reliance Industries Ltd.

The BSE Sensex ended 78 points or 0.29 per cent lower to 60,060.56, while Nifty50 slipped 40.7 points or 0.23 per cent to 17,888 at the market close. The broader markets outperform benchmarks with mid-cap index surged 257 points or 0.83 per cent to 31281 level at the time of closing.

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As many as 21 stocks advanced and 28 declined, while one remained unchanged on Nifty50 at the end of the session. Tata Group stock Tata Steel slumped most by over 3.5 per cent, followed by Grasim and JSW Steel each down between 2-3 per cent.

Similarly, Hindalco, HCL Tech, Reliance, BPCL, IndusInd Bank, Power Grid, Tech Mahindra each down between 1-2 per cent at the close.

On the contrary, Maruti ended as top gainer, up around 2.5 per cent, followed by Titan and NTPC each gaining around 2 per cent, while L&T, SBI and Tata Consumer each up 1 per cent at the close.

Sectorally, the majority of the indices end positive, except for metal, pharma, IT, and FMCG. The metal index slipped most by over 1.5 per cent, followed by Pharma, IT and FMCG. While auto, banking and financial stocks curbed the market from further fall, as each of the said indices end positively today.

Moreover, the FOMC Monetary Policy is expected on November 3, 2021, wherein Fed is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year. Angel One’s currency analyst Heena Naik says.

The analyst adds “The quantum of monthly bond purchases is expected to be at a rate of $15 billion a month amid a recovery in the US labour market and worries over the inflation outlook.”

Fed Chairman Jerome Powell’s comments will be closely watched for any adjustment in his thinking on inflation which shall drive interest rate expectations, Naik mentions adding further “Apparently, traders are pricing in as many as three interest rate hikes next year, but in the latest Fed forecast, only half of central bank officials agreed there should be even one.”