FINAL TRADE: Sensex flat, Nifty slips below 24,400 as FIIs continue to sell; HUL tanks over 5%

Indian equity markets closed in the red on Thursday, October 24, as persistent foreign selling and weak global cues kept investors on edge.

The Sensex ended 94 points lower at 79,987, while the Nifty shed 57 points to close at 24,378. Foreign institutional investors (FIIs) were the key driver behind the decline, having offloaded a hefty Rs 93,088 crore from Indian equities so far this month.

Elevated valuations in India, compared to more attractive markets like China and Hong Kong, continue to drive this exodus.

Top gainers and losers

On the NSE, UltraTech Cement was the top gainer, rising 2.90 per cent, followed by Shriram Finance (1.47 per cent), M&M (1.42 per cent), and Titan (1.29 per cent). However, the losses were more pronounced, with Hindustan Unilever (HUL) plunging 5.62 per cent, making it the top laggard. 

SBI Life (-4.68 per cent), Hindalco (-3.41 per cent), and Nestle India (-3.27 per cent) were among the other major losers.

Deepak Jasani, Head of Retail Research at HDFC Securities said, that Nifty settled at over a two-month low on October 24 falling for a third consecutive session as earning reports failed to uplift investors' sentiment. Nifty witnessed a 139-point high-low range with volumes falling 17% compared to the previous session. This suggests that constant selling pressure could be close to an end for the time being. Smallcap index fell more than the Nifty as retail investors continued to unload their holdings in small-caps as the overall market does not seem to be stabilising soon. Asian markets followed the Wall Street lower while European markets rose as corporate earnings reports surprised positively while macro numbers (PMI) disappointed.

The HSBC Flash India Composite Output Index — a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors — rose to 58.6 in October, from a final reading of 58.3 in September. The HSBC Flash India Manufacturing PMI recovered from September's eight-month low of 56.5 to 57.4 in October.

Nifty formed a doji after a fall on October 24 suggesting that for the time being sellers may be running out of steam while buyers have begun tiptoeing in. Nifty could now begin its upward correction soon and run into resistance in the 24568-24604 band while 24196 could provide support for the near term.

Sectoral performance

FMCG stocks took a significant hit, with HUL and Nestle India leading the decline. Metal stocks were also under pressure, dragged down by a 3.41 per cent drop in Hindalco. On the flip side, the banking sector provided some relief, with HDFC Bank managing to stay in the green. The healthcare sector also saw selective buying, as Cipla posted modest gains.

"Despite persistent selloffs by FIIs, the benchmark indices recorded only a minor loss, as India’s October PMI data continued to indicate healthy growth, which also supports the RBI's growth guidelines for FY25. The broader market exhibited a mixed response due to valuation corrections in sectors such as PSUs and banking & financials. Meanwhile, the FMCG sector faced declines attributed to delayed demand recovery and margin pressures, according to Analyst Vinod Nair, Head of Research, Geojit Financial Services.

The Nifty slipped below the critical support level of 24,400, closing at 24,378. Analysts recommend a "sell on rally" strategy until stronger bullish signals emerge, with key resistance seen at 24,600. Global markets added to the downbeat sentiment, as Wall Street saw its biggest drop since early September, further dampening investor confidence.