CHENNAI: Indian equity markets closed lower on Thursday (November 6), snapping a two-day winning streak as selling in metal, power, and realty counters outweighed gains in FMCG and auto stocks. The cautious mood was reinforced by weak midcap and smallcap performance, foreign investor outflows, and profit booking in key heavyweights.
The BSE Sensex slipped 148 points, or 0.18 percent, to close at around 83,311, while the Nifty 50 declined 0.34 percent to settle near 25,510. Broader market indices underperformed, with the Nifty Midcap 100 losing nearly 1 percent and the Nifty Smallcap 100 falling 1.3 percent, indicating pressure across non-index stocks.
Sectorally, metal, power, and realty stocks were the worst hit, declining between 1.5 percent and 2.5 percent. On the other hand, FMCG, auto, and IT indices managed modest gains, providing some cushion to the benchmarks.
Among key movers, Grasim Industries tumbled over 6 percent after its quarterly results disappointed investors, while Hindalco Industries slipped more than 5 percent on concerns related to its US subsidiary’s cost pressures. Adani Enterprises and Adani Power also ended lower. In contrast, Asian Paints gained nearly 4.5 percent, supported by positive sector sentiment following leadership changes in a rival company.
Despite strong earnings from select companies such as Mahindra & Mahindra, Britannia Industries, and State Bank of India, overall market sentiment remained cautious. Analysts attributed the weakness to profit-taking, lack of fresh triggers, and persistent foreign portfolio investor (FPI) outflows.
Technically, the Nifty formed a long bearish candle on the daily chart, suggesting selling pressure at higher levels. Immediate support is seen around the 25,400–25,500 zone, while resistance lies near 25,700–25,800. A breach below the support range could trigger further downside toward 25,000, while holding above it may keep the index in a consolidative phase.
Globally, mixed signals from US markets and steady Asian equities failed to lift domestic sentiment. While improving US economic data supported risk appetite overseas, expectations of delayed rate cuts by the Federal Reserve continued to cap enthusiasm among global investors.
Analysts believe the broader market may remain range-bound in the near term, with investors focusing on quality large-caps and strong quarterly performers. Continued FPI selling, global bond yields, and commodity price trends will be key factors to watch.
Overall, Thursday’s decline indicates that momentum in Indian equities has slowed, with traders likely to adopt a cautious, stock-specific approach until clear cues emerge on global rates and domestic earnings.