The S&P BSE Sensex declined 0.41% to 84,211.88, shedding 344.52 points, while the NSE Nifty 50 slipped 0.37% to 25,795.15.
On the 30-stock Sensex, Hindustan Unilever, Ultratech Cement, Kotak Mahindra Bank, Adani Ports, and Titan led the declines, falling between 1.5% and 3%.
Financials weighed the most on the benchmarks, with the Nifty Bank index down 0.7%. The FMCG gauge slipped 0.8%, dragged lower by Hindustan Unilever’s 3.3% drop and a 2.1% slide in Colgate-Palmolive (India) after both companies posted lackluster September-quarter results.
Broader markets also eased, with midcap and small-cap shares each slipping 0.2%.
For the week, both the Sensex and Nifty gained 0.3%, extending a six-session advance that lifted them about 3%.
Expert views
The domestic economy had largely reaped benefits from earlier reductions in crude prices throughout the year and the recent rise in crude prices has spurred continuation of profit booking in India, said Vinod Nair, Head of Research at Geojit Investments, adding that investor sentiment took a hit after the HSBC Composite PMI for October dropped to its lowest level since May, primarily due to a slowdown in the services sector. On a brighter note, the manufacturing PMI indicated some improvement, with companies experiencing a modest uptick in new orders and easing input cost pressures in October, attributed to the recent GST relief.
“However, the current subdued trend is likely to persist in the short term until there is more clarity on the impact of the US sanctions on Russia and the overall availability of crude in the market,” said Nair.
In technical terms, the Nifty remained weak during the session as traders continued to book profits and on the lower end, it slipped below the initial support of 25,850, leading to a decline towards 25,700, said Rupak De, Senior Technical Analyst at LKP Securities.
“The next 1–2 sessions might remain volatile; however, a sustained rally looks possible thereafter. On the higher end, resistance is placed at 25,850, above which a rally towards 26,000–26,200 looks possible,” said De.