Indian equity markets finished in the red on Thursday, pressured by losses in Real Estate, Power and Capital Goods stocks that outweighed gains in a handful of large-cap names.
At the National Stock Exchange close, the Nifty 50 dropped 1.41%. Over on the Bombay Stock Exchange, the Sensex 30 fell 1.48%.
Winners and losers
Within the Nifty 50, Oil And Natural Gas Corporation Ltd (NSE:ONGC) was the session's strongest performer, climbing 3.84% - a rise of 10.15 points - to finish at 274.75. HDFC Life Insurance Company Ltd (NSE:HDFL) added 0.66% or 4.85 points to close at 734.45, and Hindalco Industries Ltd. (NSE:HALC) gained 0.44% or 4.00 points to end the session at 903.25.
At the other end of the spectrum, Hero MotoCorp Ltd (NSE:HROM) led declines, dropping 3.35% - down 187.50 points - to settle at 5,404.50. UltraTech Cement Ltd (NSE:ULTC) slipped 2.97% or 388.00 points to finish at 12,664.00, and Mahindra & Mahindra Ltd. (NSE:MAHM) retreated 2.85% or 100.50 points to close at 3,430.00.
BSE Sensex movers
On the Sensex 30 list, several large-cap names that remained among the index's top listings still recorded declines: Infosys Ltd (BO:INFY) eased 0.50% to 1,366.70, Tata Consultancy Services Ltd. (BO:TCS) fell 0.65% to 2,677.15, and Sun Pharmaceutical Industries Ltd. (BO:SUN) lost 0.83% to close at 1,710.00. The heaviest losses on the Sensex included Mahindra & Mahindra Ltd. (BO:MAHM), which dropped 2.97% to 3,425.80, UltraTech Cement Ltd (BO:ULTC), down 2.90% to 12,669.95, and Eternal Ltd (BO:ETEA), which fell 2.60% to 270.10 at the close.
Market breadth
Decliners outnumbered advancers across both exchanges. On the National Stock Exchange, 1,935 stocks fell while 577 advanced and 48 finished unchanged. On the Bombay Stock Exchange, 2,739 issues declined, 1,226 advanced and 155 ended flat.
Notable data point
Shares of Tata Consultancy Services Ltd. (BO:TCS) moved to five-year lows in the session, slipping 0.65% or 17.45 points to close at 2,677.15.
Volatility and macro indicators
The India VIX, which tracks implied volatility for Nifty 50 options, increased 11.70% to 13.65, indicating a rise in expected near-term market swings.
Commodities and currencies
In commodities trading, Gold Futures for April delivery dipped 0.07% or 3.26 to $5,006.24 a troy ounce. Crude oil for April delivery rose 1.06% or 0.69 to $65.74 a barrel, while the April Brent contract gained 0.97% or 0.68 to trade at $71.03 a barrel.
On the currency front, the Indian rupee weakened versus the U.S. dollar, with USD/INR up 0.40% at 91.14. EUR/INR was higher by 0.44% to 107.46. The US Dollar Index Futures was marginally higher by 0.01% at 97.64.
Summary
Benchmarks ended the session lower as sector-specific weakness in Real Estate, Power and Capital Goods pressured sentiment. Select heavyweights in energy and life insurance bucked the broader trend, while volatility and currency moves added to the market backdrop.
Key points
- Nifty 50 fell 1.41% and BSE Sensex declined 1.48% at Thursday's close.
- Real Estate, Power and Capital Goods sectors were primary drags; notable gains came from ONGC, HDFC Life and Hindalco.
- India VIX rose 11.70% to 13.65 and the rupee weakened, with USD/INR at 91.14.
Risks and uncertainties
- Elevated volatility - India VIX rose sharply, suggesting higher near-term market uncertainty, which could affect risk-sensitive sectors such as Real Estate and Capital Goods.
- Currency movement - the rupee's decline versus the U.S. dollar may pressure import-sensitive companies and impact foreign investor flows.
- Concentrated sector weakness - continued selling in Power, Real Estate and Capital Goods could weigh on broader market performance if the trend persists.