Sensex, Nifty decline amid fading RBI rate cut optimism

The domestic share market traded lower on Tuesday despite early optimism, as the gains were reversed within hours, dragging the Nifty closer to the 25,000 mark as selling pressure dominated the rest of the trading session,weighed down by losses in oil & gas, automobile, and metal stocks.Investor optimism faded following a higher- than-anticipated inflation report released a day earlier,reducing expectations of a rate cut from the RBI in December.
At close, the Sensex was down 152.93 points or 0.19 percent at 81,820.12, and the Nifty was down 70.60 points or 0.28 percent at 25,057.35.
India's retail inflation surged to a nine-month high in September, driven primarily by rising food prices, according to the latest government data. Annual inflation spiked to 5.5 percent in September, up from 3.7 percent in August.
ICICI Bank, Bharti Airtel, BPCL, Britannia Industries and Bharat Electronics were the top gainers on the Nifty, while losers included Bajaj Auto, Wipro, Bajaj Finance, Hindalco and HDFC Life.
Mixed trend was seen on the sectoral front, with metal index down 1.5 percent, auto down nearly 1 percent, pharma shed 0.5 percent, while realty index rose 2 percent and media index was up 0.7 percent. Broader indices outperformed, with BSE midcap index was up 0.3 percent and smallcap index added 1 percent.
Rupee Close:
On 15 Oct'24,the Indian rupee witnessed range-bound trade and appreciated 1 paisa to 84.04 against the US dollar on Tuesday, as weak crude oil prices and suspected intervention by the Reserve Bank supported the local currency at lower levels.
Forex traders reportedly stated the rupee was weighed down by significant foreign fund outflows, a negative trend in domestic equities and the overall strength of the American currency in the overseas market.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the domestic market experienced a downturn, influenced by a mixed global trend and partial profit-booking. Although declining crude prices are beneficial for the domestic economy, they signal weakening global demand. Additionally, India’s CPI surged driven by food prices, which will delay expected rate cuts. Furthermore, subdued corporate Q2 results are leading to a cautious stance.
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( Business Correspondent)