The Indian stock market closed lower on Wednesday, with both benchmark indices shedding 0.49 per cent amid profit booking in auto and energy stocks. The BSE Sensex ended the day at 81,523.16, down 398.13 points, while the NSE Nifty closed at 24,918.45, losing 122.65 points.
Tata Motors led the decline, plunging 5.73 per cent on the NSE. Other major losers included ONGC (-2.94 per cent), Wipro (-1.85 per cent), L&T (-1.56 per cent), and Adani Enterprises (-1.55 per cent). On the flip side, Bajaj Auto emerged as the top gainer, surging 4.03 per cent, followed by Asian Paints (2.23 per cent) and Bajaj Finance (1.65 per cent).
Market breadth favored decliners, with 2,345 stocks falling compared to 1,619 advances on the BSE. The session saw 303 stocks hitting 52-week highs, while 35 touched 52-week lows.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented on the day’s performance: “Today, the benchmark indices witnessed profit booking at higher levels… Technically, after muted open one more time market took resistance near 25100 and reversed sharply. On daily charts it has formed small bearish candle on intraday charts it has formed lower top formation which suggest temporary weakness.”
Sector-wise, oil and gas stocks faced the brunt of selling pressure, with the Nifty Oil & Gas Index declining 2 per cent. PSU Bank and Metal indices also retreated, shedding 1.8 per cent and 1.5 per cent respectively. The FMCG sector provided some respite, gaining 0.3 per cent.
Ajit Mishra, SVP of Research at Religare Broking Ltd, noted, “Excessive volatility, driven by mixed global cues, is likely to persist, especially with upcoming US data releases. On the technical front, Nifty is hovering around the support of its short-term moving average, the 20-day EMA, at 24,900. Sustaining this level is crucial for any potential rebound; otherwise, profit-taking may resume.”
The India VIX, a measure of market volatility, rose 6.16 per cent to close at 13.6275, indicating increasing investor uncertainty.
Foreign institutional investors (FIIs) remained net buyers on September 10, 2024, with a net purchase of ₹2,208.23 crore in the capital market segment across BSE, NSE, and MSEI. However, domestic institutional investors (DIIs) were net sellers, offloading stocks worth ₹275.37 crore. On the same day, proprietary investors also showed positive activity with a net buy of ₹611.91 crore, while Non-Resident Indian (NRI) investors were net sellers by ₹11.29 crore.
As the market continues to navigate choppy waters, analysts advise caution and recommend a stock-specific approach for traders.