Sensex ends 150 points lower, Nifty slips below 25,100; RIL falls 2.3%

Stock market news: Benchmark indices ended Tuesday on a weak note amid investor concerns following higher inflation data. The domestic consumer price inflation data, released post market hours on Monday, escalated to a nine-month high of 5.49 per cent on high food prices. Mukesh Ambani -led Reliance Industries also witnessed a year-on-year slump in quarterly profit that was released yesterday after market hours.

At close, the 30-share S&P BSE Sensex was trading 152.93 points lower at 81,820.12 and the broader NSE Nifty 50 index was trading 70.6 points lower at 25,057.35.

“Nifty opened higher than the previous day's high, however, it was sold off from the day's high, indicating weakness in the index. The momentum indicators are indicating a move on the upside although today's was a sell-off. The ADX DI- line is dropping and the ADX DI+ line is sloping upside, indicating the upside momentum might continue. Options writer's data showed increased call writing for weekly and monthly expiry, however, it can be due to today's fall. The short-covering of these calls can result in an immediate rally in coming trading sessions,” said Praveen Dwarakanath, Vice President of Hedged.in.

“Banknifty continues to be stronger than Nifty. It opened higher than the previous day's high and was bought on every drop during the day. The momentum indicators show bullishness to continue up to its resistance level at 52500 level. The ADX DI- line is dropping and the ADX DI+ line is sloping upside, indicating the upside momentum might continue. Options writer's data showed increased writing in calls and puts at 52000 levels, indicating a pause at these levels. Also, increased call writing at 52500 and short covering at 51500 levels indicate bullishness in the index,” Dwarakanath added.

Market analysts indicated that the likelihood of interest rate cuts being pushed back to early 2025—following a spike in September's retail inflation—contributed to the negative market atmosphere. Out of 13 sub-sectors, eight closed in the red.

Automaker stocks, which are sensitive to consumer borrowing, experienced a decline of 0.8 per cent. The metals sector also suffered, falling 1.4 per cent as it mirrored global price declines amid uncertainties regarding China's economic recovery following a modest stimulus announcement.

Reliance Industries, the second-largest component of the Nifty 50, reported a 2 per cent drop in share price after revealing a decrease in second-quarter profits. Similarly, HDFC Life Insurance Company saw its stock fall by 3.6 per cent after reporting a lower value for its new business margin for the half-year period ending September 30, making it the biggest percentage loser on the Nifty 50.

Concerns about inflation overshadowed gains in oil marketing companies and paint manufacturers, which had initially benefited from a drop in global oil prices. A media report suggesting that Israel might refrain from striking Iranian oil targets eased supply disruption fears, which is positive for India, the world’s third-largest oil importer.

In capital markets news, Hyundai India's $3.3 billion IPO , the largest in the country’s history, opened for retail investors and was 16 per cent subscribed as of 3:30 p.m. IST. The bidding process will continue until Thursday.

Among notable stock movements, Garuda Construction and Engineering surged 12 per cent in its debut trading session.