Sensex slips 109 points, Nifty ends below 17,900; broader markets rally

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After opening the green domestic benchmark equity indices turned volatile and pared all the gains by in noon trades as market participants absorbed positive macro data and Q2 earnings along with a possible tapering from the Federal Reserve. At close, Sensex lost 109 points or 0.18% to 60,029 while the Nifty 50 shut shop at 17,888 slipping 40 points or 0.23%.

“Succumbing to lacklustre global sentiments, domestic indices failed to gain ground oscillating between gains and losses in today’s rough session. Global markets remain jittery ahead of the upcoming Bank of England and Fed meetings where the central banks could cease the pandemic-era stimulus. Metal, oil and commodity stocks dragged, fuelled by profit booking while realty, PSU bank and consumer durables made frail attempts at lifting the indices. Auto sector managed to remain buoyant despite weak auto sales numbers reported by sectoral majors due to supply chain disruptions, fuel price hikes and rise in input costs,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

On the sectoral indices, the Nifty Realty index continued its uptrend for the second day in a row after on a strong demand outlook. The index surged 3.38% in today’s session. Besides the realty index, Nifty PSU Bank index rallied 2.37% ahead of SBI’s results that are slated to be released tomorrow November 03. That apart Nifty Auto, Nifty Bank and Nifty Media indices were up 0.44-0.95%.

On the downside, Nifty Metal index corrected 1.58% after a strong rally in yesterday’s session. While Nifty Pharma, Nifty FMCG and Nifty IT slipped anywhere between 0.11-0.50%.

The volatility gauge India VIX index cooled off further to 17.04 levels.

Broader markets

Unlike benchmark indices, the broader markets ended today’s session with gains. The BSE MidCap index rallied 149 points or 0.58% to 25,869 while the BSE SmallCap index settled at 28,606 surging 313 points or 1.11%.

Bulls had the markets in their grip as 1,952 shares advanced compared to 1,301 declining and 148 remained unchanged.

Global markets

Most shares in Europe and Asia declined on Tuesday, 2 November 2021. Investors are monitoring the US Federal Reserve’s two-day meeting Tuesday and Wednesday. The central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year.

US manufacturing activity slowed in October, with all industries reporting record-long lead times for raw materials. The ISM’s index of national factory activity slipped to a reading of 60.8 last month from 61.1 in September.