Indian Markets Witness Volatility on October 16: Sensex and Nifty Close in the Red

The Indian stock market witnessed significant volatility on October 16, resulting in a decline for both Sensex and Nifty. Sensex experienced a dip of 115.81 points (0.17%) to close at 66,166.93, while Nifty closed at 19,731.80 with a 0.10% drop. The market commenced with a downward trend influenced by mixed global signals, with Nifty temporarily slipping below 19,700 during intraday trading. However, the market corrected and remained within a fluctuating range throughout the trading session, with the broader market performing comparatively better. The BSE Midcap Index closed 0.25% higher, and the Smallcap Index closed 0.3% higher.

Sensex and Nifty’s October 16 Performance

Looking into sectoral indices, the metal index showcased a 1.3% increase, the PSU Bank index saw a 0.7% gain, and the auto index closed with a 0.4% rise. Conversely, realty and healthcare indices experienced a decline. Notable Nifty losers included Divis Laboratories, Nestle India, TCS, IndusInd Bank, and Asian Paints. On the other hand, top Nifty gainers were Hero MotoCorp, JSW Steel, Tata Steel, Coal India, and UPL.

Gainers, Losers, and Notable Trends in the Indian Stock Market

Stocks such as GNFC, Multi Commodity Exchange of India, and NMDC observed a long build-up, while Divis Laboratories, Laurus Laboratories, and Vodafone Idea saw a short build-up. Additionally, the trading volume surged by over 300% for stocks like GNFC, Samvardhan Motherson International, and Balrampur Chini Mills.

Over 300 stocks on BSE, including TVS Motor Company, Bajaj Healthcare, Polycab India, and Federal Bank, touched their 52-week high, indicating notable market movements. Looking ahead to October 17, market experts predict consolidation and emphasize betting on green energy and smart metering stocks while suggesting caution with IT company stocks due to growth and valuation mismatch. Sharekhan’s Jatin Gedia notes a consolidation pattern in Nifty, suggesting a range of 19,500 – 20,100. Bank Nifty shows signs of recovery, with a potential pullback to 44,800 – 45,000 in the short term as long as key support levels are maintained.