FINAL TRADE: Weak global cues, sell-off in index heavyweights roil market; Sensex tanks 901 pts, Nifty ends at 18,857

Stock market today: Bears continued to be in the driver's seat for the sixth straight session on Thursday (October 26) as geopolitical tensions, a rise in US bond yields, and a sell-off in blue-chip stocks made investors jittery.

Additionally, the market was also volatile as it was the last day of the futures & options (F&O) contracts for the October series.

The S&P BSE Sensex nosedived 901 points, or 1.41 per cent to settle at 63,148.15, while the NSE Nifty closed at a four-month low and slipped below the 18,900 level to close at 18,857.25 points, down 264.9 points, or 1.39 per cent.

"To date, the actual domestic Q2 results are below par in comparison to the excited earnings forecasted. Similar disappointments are visible in developed economies. A downgrade in earnings and valuation is arising due to the risk of a further slowdown of the economy due to geopolitical and elevated interest rates. Also, selling pressure intensified due to expiry-led volatility influencing investors to stay cautious," said Vinod Nair, Head of Research at Geojit Financial Services.

In the Nifty basket, 46 stocks finished below the flat line, with M&M, Bajaj Finance, Asian Paints, UPL, and Nestle India being the worst hit, with losses to the tune of over 3 per cent. Conversely, Axis Bank, Adani Ports, HCL Tech, and Power Grid were the top gainers, rising between 0.15-1.89 per cent for the day.

M&M, Bajaj Finance, and Asian Paints were the top stocks that dragged the 30-scrip index.

High-beta Nifty Bank closed at a six-month low with 1.29 per cent cuts at 42,280.15.

The Nifty Mid Cap 100 and Small Cap 100 also closed at a two-month low.

Listed BSE companies' market capitalisation was reduced by Rs 13 crore in three sessions and Rs 23 crore in six sessions.

On the other hand, India VIX gained 15 per cent in three sessions.

TECHNICAL VIEW 

"Considering that Nifty has reached a support zone and is appearing oversold on the hourly charts, we can expect a pullback till 19,000–19,050; however, it is likely to be only a temporary pause in the overall downtrend. On the downside, the Nifty is likely to drift towards 18,500 levels in the short term, and the intermediate pullbacks should be used as a selling opportunity. In terms of levels, 18,700–18,650 shall act as a crucial support zone, while 19,000 – 19,050 is the immediate hurdle zone," said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Further, for Nifty Bank, Gedia said that the overall trend is negative, and we expect it to target levels of 40,850 from a short-term perspective.

BUZZING STOCKS 

Jubilant FoodWorks shares were down over 3 per cent after posting in-line yet weak results.

Asian Paints shares were down over 3 per cent after posting Q2 results.

Nifty IT, metal, pharma, financial services, bank, realty, auto, and oil & gas stocks ended with over 1 per cent cuts.

Conversely, Sona BLW Precision Forgings shares traded over 6 per cent higher after the company reported its Q2 numbers. 

Sonata Software shares closed over 8 per cent higher after posting mixed results. 

Share India Securities shares were up 3 per cent after posting the best-ever quarterly results.

Rallis India shares were up over 4 per cent after posting Q2 results. 

GLOBAL MARKETS 

Europe and Asia shares fell after Wall Street tumbled as bond yields tightened their chokehold. Germany's DAX fell 1.1 per cent to 14,722.60, and the CAC 40 in Paris shed 0.8 per cent to 6,860.72. Britain's FTSE 100 was down 0.7 per cent at 7,361.04.

The futures for the S&P 500 dropped 0.7 per cent and that for the Dow Jones Industrial Average was down 0.2 per cent. On Wednesday, On Wednesday, the S&P 500 tumbled 1.4 per cent, back back to where it was in May. Some of the heaviest losses hit Big Tech stocks, which dragged the Nasdaq composite to its second-worst drop of the year. It gave up 2.4 per cent. The Dow industrials fell 0.3 per cent. 

The yield on the 10-year Treasury has nudged back up towards 5 per cent. It was at 4.95 per cent early Thursday after dipping to 4.82 per cent late Tuesday.

(With agency inputs)

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