Sensex, Nifty extend losses amid weak rupee and IT sector decline

Benchmark stock market indices continued their losing streak as they closed in red, dragged down by a fall in IT, energy, and pharma stocks.
The S&P BSE Sensex lost 241.30 points to close at 77,339.01, while the NSE Nifty50 was down 78.90 points to end at 23,453.80.
Vinod Nair, Head of Research, Geojit Financial Services said that consolidation continued in the market; a slowdown in earnings growth and a weak rupee due to inflation impacted sentiment.
“IT stocks reacted negatively today due to a reduced expectation of a FED rate cut in December, which may pose a delay in spending in the BFSI segment. On the other hand, metal stocks gained some ground after China decided to reduce tax rebates on aluminium and copper,” he added.
Metal stocks led the gainers with Hindalco surging 3.79%, followed by Tata Steel which advanced 2.33%. Auto sector showed strength with Hero MotoCorp gaining 2.69%. Consumer goods companies also performed well, with Nestle India rising 1.47% and Hindustan Unilever adding 1.46%.
IT major TCS faced the steepest fall of 3.11%, while pharmaceutical stocks were under pressure with Dr Reddy’s dropping 2.75% and Cipla declining 2.38%. Technology giant Infosys fell by 2.65%, and BPCL slipped 2.62%.
“Sector-wise, there was a mixed performance, with metals, FMCG, and auto gaining, while IT and energy sectors remained under pressure. The broader indices also showed mixed results, as the midcap index remained flat while the smallcap index declined by nearly half a percent. Nifty has now fallen below its major support at the 200-day EMA after a brief pause, indicating that the bears are in control. However, oversold conditions in heavyweight stocks across sectors are currently slowing the pace of the decline. We recommend maintaining a cautious outlook on the index and focusing selectively on stock-specific opportunities,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
10 of the sectoral indices closed in green, with metal stocks gaining the most.