The Indian stock market snapped its two-day winning streak on Thursday, with benchmark indices closing sharply lower amid a broad-based sell-off. The market gave up its early gains as investors booked profits after the U.S. Federal Reserve's cautious commentary on future rate cuts dampened global sentiment. Heavy selling in banking, pharma, and telecom stocks dragged the indices down.
The S&P BSE Sensex plunged 593.13 points (0.69%) to close at 84,404.00. The NSE Nifty 50 also saw a significant decline, falling 175.75 points (0.67%) to end the day at 25,878.15.
Key Market Highlights
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Sensex: Closed at 84,404.00, down 593 points.
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Nifty 50: Ended the session below the 25,900 mark.
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Market Sentiment: The mood on Dalal Street turned bearish after a positive start. The market failed to hold its opening gains as investors reacted to the U.S. Federal Reserve's decision to cut rates but signal a pause, which tempered expectations for further easing. The market breadth was negative, with declines outnumbering advances.
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Broader Markets: The broader markets also faced selling pressure, mirroring the decline in the main indices.
Top Gainers and Losers
Gains in the capital goods sector were unable to offset widespread losses, particularly in pharma and telecom stocks.
| Top Gainers |
Top Losers |
| Larsen & Toubro (+1.48%) |
Dr. Reddy's Laboratories (-4.56%) |
| Bharat Electronics (+1.42%) |
Bharti Airtel (-1.79%) |
| UltraTech Cement (+1.30%) |
Power Grid (-1.39%) |
| Coal India (+0.79%) |
Tech Mahindra (-1.30%) |
| Shriram Finance (+0.61%) |
Sun Pharma (-1.28%) |
Sectoral Performance
It was a day of widespread losses, with most sectoral indices ending in the red.
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Top Loser: The Nifty Pharma index was the biggest laggard, facing significant selling pressure. The Banking, Financial Services, and Telecom sectors also ended with notable losses.
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Sole Gainer: The Nifty Capital Goods index was a rare outperformer, closing in the green, largely due to strong Q2 earnings from L&T.
Q2 Earnings Bonanza
Today was one of the busiest days of the earnings season, with over 85 companies, including several heavyweights, announcing their results for the September quarter.
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ITC: The FMCG major reported a consolidated net profit of ₹5,186.55 crore, up 2.6% year-on-year, while revenue grew by 6%.
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Larsen & Toubro (L&T): The infrastructure giant posted a strong 15.6% year-on-year rise in its consolidated net profit to ₹3,926 crore, driven by robust order execution.
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Hyundai Motor India: The automaker reported a 14.3% jump in its Q2 profit to ₹1,572 crore, with a 1.2% increase in revenue.
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Adani Power: The company's net profit declined by 12% year-on-year, despite growth in power sales.
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Dabur India: The consumer goods company posted a 9% year-on-year rise in its consolidated net profit.
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Bandhan Bank: The private lender's Net Interest Income (NII) fell by 11.8% to ₹2,589 crore.
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Swiggy: The food delivery platform's loss widened for the second quarter.
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Motilal Oswal Financial Services: The firm's net profit fell sharply by 68% year-on-year to ₹362 crore, with revenue also declining by 35%.
Major News and Market Events
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US Fed Rate Cut: The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points, as expected. However, Fed Chair Jerome Powell's comments suggesting a likely pause in the rate-cutting cycle tempered market enthusiasm and led to a sell-off in global equities.
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Dividend Announcements: Several companies declared dividends along with their Q2 results. Hindustan Unilever announced an interim dividend of ₹19 per share, while Coal India declared a dividend of ₹10.25 per share.
Frequently Asked Questions (FAQs)
Why did the market fall today?
The market's decline was primarily triggered by the U.S. Federal Reserve's cautious commentary after its interest rate cut. This signalled a pause in the rate-cutting cycle, which dampened investor sentiment globally and led to profit-booking in the domestic market after a strong rally.
Which sectors were the most affected?
The Nifty Pharma, Banking, and Telecom indices were among the worst performers, facing significant selling pressure. The Nifty Capital Goods index was the only major sectoral gainer.
What were the key Q2 results announced today?
It was a very busy day for earnings. L&T reported strong profit growth, while ITC's profit rose modestly. Adani Power and Bandhan Bank reported a decline in their quarterly profits, and Swiggy's loss widened.
What was the US Federal Reserve's decision?
The Fed cut its key interest rate by 25 basis points but indicated that it would now adopt a wait-and-see approach, signalling that further rate cuts are not guaranteed. This cautious stance led to a sell-off in equity markets.