Sensex, Nifty continue slide amid volatility; IndusInd Bank tumbles 15%

The S&P BSE Sensex was down 370.19 points to 79,694.97 at 10:02 am, while the NSE Nifty50 declined 141 points to trade at 24,258.40.

In Short

• Sensex, Nifty amid FII selling and weak earnings
• FII selling reaches Rs 98,085 crore in October alone
• IndusInd Bank drops 15% on disappointing Q2 results report

Benchmark stock market indices continued to slide on Friday and are set to end the week on a lacklustre note due to sustained selling by foreign institutional investors (FIIs) and dull Q2 results.

The S&P BSE Sensex was down 370.19 points to 79,694.97 at 10:02 am, while the NSE Nifty50 declined 141 points to trade at 24,258.40.

Most of the other broader market indices fell sharply in early trade due to persistently high volatility.

Banking stocks contributed significantly to the stock market slide in early trading, while some FMCG stocks, including ITC, gained.

The top five gainers on the Nifty50 were ITC, Britannia, Asian Paints, Axis Bank and Nestle India.

On the other hand, the top losers were IndusInd Bank, M&M, Adani Enterprises, Shriram Finance and NTPC.

IndusInd Bank shares tumbled 15% after reporting weak results for the second quarter of the ongoing financial year. It’s profit in Q2FY25 slumped 39% year-on-year.

On the other hand, shares of ITC rose 4% after it reported a 2% increase in net profit and 16% growth in revenue.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “A distinct change in the long-term market trend is discernible from the recent market movements. The overarching trend that took the Nifty from the COVID low of 7511 in March 2020 to above 26200 in September 2024 has been the ‘buy on dips’ strategy that worked well consistently.”

“With the massive, sustained and unprecedented selling by the FIIs, which has touched Rs 98,085 crore this month up to 24th, the buy on dips strategy is not working. More important, the consensus downward revision in FY25 earnings estimate and the weak Q2 numbers have soured the sentiments to slightly bearish mode,” he noted.

“The positive factor is the sustained flows into mutual funds that is helping DIIs absorb the massive FII selling. This can provide resilience to the otherwise weak market where even after the 7% correction there is no valuation comfort, except in pockets like largecap financials. Growth stocks are likely to be more resilient in this market where value is hard to come by,” Vijayakumar cautioned.