Autos, FMCG Lead While Metals, Energy Lag as Nifty Ends Higher

Mumbai, June 25: Indian equities ended Thursday’s session with modest gains, but the sectoral trend revealed a clear divide between winners and losers. Falling crude oil prices boosted sentiment in automobiles, aviation and consumer stocks, while metals, energy and information technology shares came under pressure. The Nifty Auto index emerged as the top sectoral performer, while commodity-linked sectors weighed on the broader market as investors rotated into domestic consumption plays. 

Autos accelerate as crude prices retreat 

The auto pack was the undisputed leader of the day, with the Nifty Auto index surging more than 2%. The sector benefited from Brent crude slipping below pre-Iran conflict levels, easing concerns around fuel costs and inflation.

Nifty Auto index revved up as crude cooled down. Source: NSE

Among the top gainers were Mahindra & Mahindra, Maruti Suzuki, Tata Motors Passenger Vehicles, Bajaj Auto, Eicher Motors and TVS Motor Company. Hero MotoCorp ended flat after rising on positive brokerage commentary shrugging off El Niño concerns. 

Airline stocks also stood out, with InterGlobe Aviation climbing sharply as investors priced in the prospect of lower aviation turbine fuel costs and stronger margins. 

Automobile manufacturers also drew buying interest on expectations that lower fuel prices could support vehicle demand and improve consumer sentiment, especially in rural and semi-urban markets. 

FMCG stocks attract defensive buying 

Nifty FMCG index advanced on discretionary spending hopes as cooling crude eased inflationary outlook. Source: NSE 

Consumer-focused stocks were another bright spot. The Nifty FMCG index gained around 0.7%, with investors favouring companies seen as beneficiaries of easing inflationary pressures. 

Tata Consumer Products featured among the benchmark’s top gainers, while other FMCG names such as Hindustan Unilever, Nestle India, and Godrej Consumer Products also traded higher. 

The sector’s performance reflected growing optimism that lower energy costs could support discretionary spending and strengthen consumption trends in the coming quarters.

Healthcare index helped to the flatline by Max  

Nifty Healthcare index ended flat, with Max Healthcare Institute ranking among the best-performing Nifty constituents and bringing the sectoral index all the way the flatline. Apollo Hospitals edged up while Fortis Healthcare fell over 2%.

Metals continue to feel the heat from profit booking 

Metal stocks emerged among the biggest losers of the session, their index declining 1.4%. The Nifty Metal index ended in the red as investors continued to sell shares and remained cautious on the outlook for global industrial demand. 

Hindalco Industries was among the top laggards on the Nifty, while Tata Steel, JSW Steel, Jindal Steel & Power, National Aluminium Company and Vedanta also faced selling pressure. The weakness reflected concerns about slowing global manufacturing activity and uncertainty surrounding commodity demand. 

Energy, oil & gas counters under pressure 

Energy stocks also struggled. ONGC was among the biggest drags on the benchmark, as softer oil prices can weigh on earnings expectations for upstream producers. 

Other stocks including Oil India, GAIL, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation traded weak as investors reassessed the implications of lower energy prices across the value chain. 

Power stocks were also subdued, with Power Grid Corporation featuring among the day’s notable losers. 

IT declines after rebound 

Technology shares declined after the rebound yesterday. Tech Mahindra was among the worst-performing Nifty stocks, while Infosys, HCLTech, and LTIMindtree also saw selling interest. 

Nifty IT index declined after rebounding yesterday as fears came flooding back. Source: NSE  

The sector continued to face headwinds from concerns over global growth, corporate technology spending and demand visibility in key overseas markets.

Overall, Thursday’s trade reflected a rotation into sectors tied to domestic demand and lower oil prices, while commodity producers and export-oriented technology stocks remained on the back foot. The market’s preference for autos, aviation, and FMCG underscored investors’ focus on earnings beneficiaries of a softer crude environment. 

Source

•  NSE