Sensex and Nifty End Lower After Volatile Session; Metals Drag as FMCG and IT Stocks Lend Support

Contents

Metals Lead Market Decline as Hindalco, Grasim Weigh on Indices FMCG, IT and Auto Stocks Offer Partial Relief Asian Paints Tops Gainers; Reliance, IndiGo, and UltraTech Firm Up Global Cues and FII Outflows Keep Market Mood Subdued Corporate Earnings Continue to Provide Underlying Support Outlook: Consolidation Likely, Stock-Specific Moves to Dominate

Indian equity markets ended a choppy session on a weak note on Thursday, as selling pressure in metal and select financial stocks dragged key indices lower for the third consecutive session. Despite early gains driven by strength in defensive and technology stocks, expiry-day volatility and sustained foreign fund outflows kept investor sentiment subdued.

At close, the BSE Sensex slipped 148 points, or 0.2%, to end at 83,311, while the NSE Nifty 50 declined 88 points, or 0.3%, to 25,510. Broader markets underperformed, with the Nifty Midcap 100 falling 0.7% and the Nifty Smallcap 100 losing 1.4%, reflecting risk aversion among investors.

Market breadth remained negative, as 2,855 stocks declined against 1,174 advancing on the NSE, indicating broader weakness across sectors.

Metals Lead Market Decline as Hindalco, Grasim Weigh on Indices

The Nifty Metal index was the biggest sectoral loser of the day, plunging 2.1%, as investors reacted to weaker global cues and disappointing earnings from key players.

Hindalco Industries fell over 5% after its US subsidiary Novelis Inc. reported flat shipments and a subdued margin outlook in its quarterly results. Grasim Industries also declined nearly 6%, emerging as the top Nifty loser, while JSW Steel and Tata Steel traded in negative territory amid profit-taking.

Analysts said that a strong US dollar and rising concerns about slowing demand in China further pressured metal stocks, which have been underperforming in recent sessions.

FMCG, IT and Auto Stocks Offer Partial Relief

While metals dragged the indices lower, FMCG and IT stocks provided some cushion to the fall. The Nifty FMCG index edged up 0.05%, supported by gains in Britannia Industries, Nestle India, and Hindustan Unilever.

In the technology space, the Nifty IT index rose 0.2%, led by Wipro, TCS, and Infosys, tracking firm cues from global tech markets and easing bond yields in the US.

The auto sector also remained resilient. Mahindra & Mahindra (M&M) advanced 1.2% to ₹3,625, after reporting strong Q2 FY26 earnings that surpassed Street estimates. Analysts remained bullish on the company, citing sustained demand in both the auto and farm equipment segments, and improved operating margins.

The Nifty Auto index closed marginally higher, up 0.1%, reflecting steady investor confidence in the sector.

Asian Paints Tops Gainers; Reliance, IndiGo, and UltraTech Firm Up

Among individual stocks, Asian Paints surged 4.7% to ₹2,603, emerging as the top Nifty gainer amid renewed optimism in the paint sector. Analysts at Nuvama Institutional Equities reiterated a ‘Buy’ rating, highlighting the company’s strong market position and the belief that demand had been deferred, not lost, due to seasonal factors like extended rains.

Reliance Industries gained 1.6%, while InterGlobe Aviation (IndiGo) and UltraTech Cement advanced over 1% each, contributing to partial recovery in late trade.

However, profit booking in banks and financials capped gains, with ICICI Bank, Axis Bank, and HDFC Bank closing marginally lower.

Global Cues and FII Outflows Keep Market Mood Subdued

Investor sentiment remained cautious amid weak global cues and continued foreign institutional investor (FII) selling. FIIs were net sellers for the fifth consecutive session, offloading equities worth ₹1,067 crore on Tuesday, according to provisional exchange data.

A strong US dollar, hovering near a five-month high, and concerns over potential delays in global rate cuts kept emerging market assets under pressure. The broader market also saw heightened expiry-day volatility, leading to intraday swings and profit-taking in select counters.

“Markets have entered a cooling period following the strong October rally. Given the current consolidation, investors are focusing on stock-specific opportunities rather than index-wide momentum,” said Rajesh Bhosale, equity analyst at Angel One.

Anand James, Chief Market Strategist at Geojit Financial Services, noted that the Nifty could see a pullback if it sustains above 25,630–25,650 levels, with resistance expected near 25,770–26,035.

Corporate Earnings Continue to Provide Underlying Support

Despite the muted session, analysts highlighted that robust corporate earnings from key companies such as State Bank of India (SBI), Mahindra & Mahindra, Britannia, and Paytm have so far prevented a deeper correction in the indices.

“The broader trend remains constructive, supported by healthy Q2 results and strong domestic macro fundamentals,” said a Mumbai-based fund manager. “However, persistent FII selling and global risk factors could keep markets volatile in the near term.”

Traders are now eyeing upcoming macroeconomic data, crude price movements, and commentary from global central banks for cues on near-term market direction.

Outlook: Consolidation Likely, Stock-Specific Moves to Dominate

Analysts expect Indian equities to remain range-bound in the coming sessions as markets digest quarterly earnings and global developments. The near-term trend will likely depend on foreign fund flows, US bond yield movements, and domestic inflation data.

While headline indices may consolidate, sector rotation is likely to continue, with IT, FMCG, and autos expected to attract buying interest on dips.

“Investors should focus on high-quality stocks with strong earnings visibility and robust balance sheets as volatility may persist in the short term,” said James.