Indian stocks ended Tuesday’s session lower, reversing the previous day’s sharp gains, as weakness in realty, FMCG and technology stocks dragged the benchmarks lower, while metal stocks bucked the broader trend.
The Nifty 50 closed 0.64% lower at 24,614, while the Sensex ended with a comparatively modest decline of 0.27% at 78,428. The sharp divergence between the closing values of the two benchmark indices extended for a second consecutive session following the implementation of the Closing Auction Session (CAS).
Introduced on Monday, the Closing Auction Session pools all buy and sell orders after the end of regular trading and determines a single price at which the maximum number of shares can be matched. This auction price is then used as the official closing price for eligible stocks.
Meanwhile, the broader markets delivered a mixed performance, with the Nifty Midcap 100 index declining 0.62%, while the Nifty Smallcap 100 index bucked the trend to end 0.20% higher.
After opening on a flat note, the market witnessed brief buying interest before profit booking emerged and intensified through the session. Selling pressure in real estate, FMCG and consumer durable stocks deepened towards the close, dragging the Nifty Realty and Nifty FMCG indices down 2.15% and 1.60%, respectively.
Among the other sectoral losers, the Nifty Private Bank, Nifty IT, Nifty Oil & Gas and Nifty Cement indices also came under pressure, with each falling more than 1%. On the other hand, the Nifty Media and Nifty Metal indices outperformed the broader market, rising 2% and 0.50%, respectively.
“Market sentiment turned cautious as investors booked profits following Monday’s exceptional rally, which was partly driven by the newly introduced closing auction mechanism. Concerns over increased market volatility, mixed corporate earnings, and uncertainty surrounding global macro developments kept traders defensive, said domestic brokerage firm Lemonn.
LIC leads losers; FMCG, realty and new-age tech stocks under pressure
Life Insurance Corporation (LIC) emerged as the biggest laggard, plunging 8.7% to ₹391 apiece, marking its steepest single day fall in four months after the government’s 2.5% Offer for Sale (OFS) opened for subscription for non-retail investors.
Jain Resource Recycling, C.E. Info Systems, UPL, Prestige Estates Projects, Oberoi Realty and Motherson Sumi Wiring also came under heavy selling pressure, declining between 4.2% and 7.7%.
Dabur India shed nearly 4% to the ₹410 level after the Food Safety and Standards Authority of India (FSSAI) barred the FMCG major from selling certain food products carrying misleading “100%” claims.
Weakness was also visible across the FMCG pack, with peers such as Emami, Colgate-Palmolive (India) and Godrej Consumer Products falling 3.5%, 3.2% and 2.6%, respectively. Among new-age technology stocks, PB Fintech and Urban Company declined 3.2% and 2.7%, respectively.
Consumer durable stocks also remained under pressure, with Blue Star and Godrej Industries ending the session around 2.6% lower each. Kalyan Jewellers shares ended 2.7% lower ahead of the June quarter results.
Earnings optimism lifts Ather, KEI and Graphite India
Better-than-expected June quarter earnings boosted investor sentiment, with Ather Energy, KEI Industries, Graphite India, and Saregama India emerging among the top gainers. The stocks surged 14%, 9.5%, 7.9%, and 5.5%, respectively, after reporting strong quarterly performances.
Steel Authority of India (SAIL), Apar Industries, Syrma SGS Technology, and ZF
Commercial Vehicle Control Systems India also posted solid gains, rising 5.2%, 4.7%, 4.4%, and over 4%, respectively. Meanwhile, the earnings-led rally in PVR INOX gathered further momentum, with the stock advancing another 4% to ₹1,881, its highest level in seven months.
Other notable gainers included Godfrey Phillips India, Welspun Living, Netweb Technologies, Auctus Chemicals, Nippon Life India Asset Management, and Exide Industries, all of which climbed more than 3% during the session.
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