Sensex, Nifty marginally down as FMCG and energy stocks drag
The broader market showed resilience, with the BSE Midcap gaining 0.6 percent and the BSE Smallcap rising nearly 1 percent.
Sensex and Nifty remained flat in the final hour of trading on September 13. While FMCG and energy stocks exerted downward pressure on the Nifty, gains in banking and IT stocks helped limit the losses.
At 2.40 PM, the Sensex had dipped 102 points, or 0.1 percent, to 82,860, while the Nifty slipped 29 points to 25,359. Market breadth was negative with 2,178 shares advancing, 1,247 declining, and 67 unchanged.
Although pharma and healthcare stocks recovered from earlier losses, FMCG continued to face selling pressure, weighed down by ITC, HUL, and Godrej Consumer Products. Nifty Energy and Nifty Infra were also down by half a percent.
In a sluggish market, PSU banks, metals, and IT stocks stood out as outperformers. Nifty Realty, Nifty Media, and Nifty PSU Bank indices rose 1-2 percent.
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Metal stocks continued their upward momentum from the previous session, bolstered by expectations of a potential rate cut on mortgages in China aimed at boosting domestic consumption. Additionally, the Indian government’s decision to extend anti-dumping duties on select steel imports from China and Vietnam further supported the sector. The metal index, Nifty Metal was up 0.9 percent led by gains in Vedanta, Tata Steel, and Jindal Steel.
High volumes and positive updates from Wipro’s CEO Srini Pallia drove Wipro shares up nearly 4 percent, which in turn pushed the Nifty IT index to a new high. The Nasdaq Composite’s 1 percent surge overnight and growing expectations of a 25 basis point rate cut by the US Federal Reserve in the upcoming September 17-18 FOMC meeting provided further support to IT companies, which rely heavily on the US for their revenues.
However, the broader market showed resilience, with the BSE Midcap gaining 0.6 percent and the BSE Smallcap rising nearly 1 percent. Meanwhile, India VIX, a gauge of market volatility, eased by 5 percent to 12.5.
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