Sensex tumbles 677 points, Nifty ends at 17,671; PSU banks rally

Domestic benchmark equity indices continued with their downtrend amid a high amount of volatility for the second day in a row, relentless selling by FIIs and weak European markets intensified selling in the second half of the session. At close, Sensex tumbled 677 points or 1.13% to 59,306 while the Nifty 50 settled at 17,671 declining 185 points or 1.04%. "The domestic market continued to witness selling as energy and private bank stocks remained under pressure following dull global sentiments. European markets opened weak even as the ECB decided to keep policy rates unchanged despite the inflationary pressure. US futures are trading in red following slow GDP growth and disappointing earnings from tech giants. Decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days," said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

[caption id="attachment_93048" align="alignnone" width="795"] Top gainers & losers on the Sensex.[/caption]

Sectoral strand

Sectoral indices ended in the mixed on the NSE  with the Nifty PSU Bank index advancing 1.45%, followed by Nifty Pharma index jumped 0.72% and the Nifty Media index rose 0.63%. While Nifty Realty, Nifty Metal, Nifty Auto and Nifty FMCG index rose anywhere between 0.04-0.45%. On the downside, Nifty Bank IT slipped 1.45% and Nifty Bank index lost 1%. The volatility gauge of India VIX cooled off by 2.72T to 17.42 levels.

Broader markets

Broader markets outperformed the benchmark indices as the BSE MidCap index was up 41 points or 0.16% to 25,277 whereas the BSE SmallCap index settled at 27,982 lower by 107 points or 0.38%. The market breadth was negative as 1,806 shares declined while 1,441 advanced and 152 remained unchanged.

Global markets

European stocks fell across the board while Asian stocks were mixed on Friday, 29 October 2021, as traders digested a raft of U.S. and domestic corporate earnings. The European Central Bank on Thursday decided to keep interest rates and its monetary policy stance unchanged, despite ongoing inflationary pressures. Japan's factory output shrank for the third straight month in September as production in the auto sector was hit by a global supply shortage. Factory production slumped 5.4% in September from the previous month, official data showed on Friday.