Sectoral Snapshot Today: IT, Banking, FMCG Shares Drag; Media, Auto, Realty Gain

Mumbai, October 12: Information technology and banking stocks led losses in the Indian equity market on Monday, while consumer staples shares also weighed on the benchmarks as investors remained cautious despite the Reserve Bank of India’s (RBI) measures to support the rupee and an initial decline in crude oil prices. Media, auto and real estate stocks bucked the trend, helping broader markets outperform the frontline indices.

The Nifty 50 fell 157.10 points, or 0.70%, to close at 22,363.35, while the BSE Sensex declined 547.65 points, or 0.76%, to 71,924.68. Although most sectoral indices advanced, losses in heavyweight IT and financial stocks contributed to the benchmarks’ decline. Persistent foreign investor selling, elevated crude oil prices and concerns over inflation kept sentiment fragile.

IT Stocks Fall; Tech Mahindra Leads Losers

Information technology stocks came under pressure, with the Nifty IT index falling around 0.8%. Tech Mahindra was among the biggest losers in the Nifty 50, declining 2.8% amid concerns that growing competition from satellite-based mobile services could constrain telecom spending.

The decline followed a strong previous session, when IT stocks had rallied 3%. Investors continued to assess the outlook for technology spending and earnings growth as companies navigate changing client budgets and emerging competition.

Banking Stocks Weaken Despite Rupee Support Measures

Banking stocks also retreated, with the Nifty Bank index falling 0.6% after gaining 1.4% on Friday. The RBI’s latest measures to curb dollar demand and support the rupee offered some relief to currency markets, but failed to provide a sustained boost to equities.

The central bank has redirected oil companies’ dollar purchases away from the spot market and tightened foreign-exchange hedging rules. The rupee rose at the start of Monday’s session, but investors remained concerned about foreign fund outflows, inflation and the RBI’s recent shift to a calibrated tightening stance. ICICI Bank fell 1%, SBI declined 1.9% while Axis Bank fell 0.5%.

FMCG Stocks Under Pressure; Avenue Supermarts Slides

Fast-moving consumer goods stocks remained under pressure, with ITC and Hindustan Unilever among the biggest Nifty 50 losers. Weakness in consumer-facing stocks reflected concerns over the impact of elevated energy prices, inflation and pressure on household purchasing power.

Avenue Supermarts, which operates the DMart retail chain, fell 4.3% after brokerages flagged margin pressure following its September-quarter results. The stock’s decline added to the weakness in the broader consumer segment, with investors assessing whether sales growth can translate into stronger profitability.

Healthcare Stocks Decline; Apollo Hospitals, Max Healthcare Fall

Healthcare stocks also witnessed selling. Apollo Hospitals fell 3.2%, while Max Healthcare declined 2% and Medanta edged down 0.3%. The declines followed scrutiny of high drug mark-ups after the Supreme Court questioned the government over why it could not control the drug market.

The selling weighed on select hospital stocks despite the broader market’s relative resilience outside large-cap equities.

Media, Auto, Realty Stocks Gain; Smallcaps Outperform

Media, auto and real estate stocks moved higher, bucking the weakness in IT and banking shares. The Nifty Media index surged 4.6%, while Realty gained 1% and Auto advanced 0.9%. Pharma stocks edged up 0.3%.

Poonawalla Fincorp was among the individual gainers, rising 0.4% after reporting a five-fold year-on-year increase in consolidated net profit for the September quarter to Rs 375 crore.

Broader markets outperformed the benchmarks, with the Nifty Smallcap index rising 1.4% and the Midcap index gaining around 0.1%, supported by domestic fund inflows. Investors will now track crude oil prices, foreign fund flows, inflation data and quarterly earnings for further direction.

Source:

• NSE