Closing Bell: Market Ends Lower; Sensex & Nifty Shed Gains Led By Banks; Metal Stocks Shine This Week

The Indian stock market experienced a rollercoaster session on Friday, September 27, as the Sensex and Nifty hit fresh intraday highs before ultimately closing in the red. Despite touching record levels earlier in the day, the indices faced profit booking, leading to a downturn by the end of the trading session.

The benchmark indices reached intraday highs, with the Sensex hitting 85,978.3 and the Nifty touching 26,277.3. However, profit booking at these record highs led to a decline, and by the market close, the Sensex had fallen 264 points to settle at 85,572, while the Nifty dipped 37 points to end at 26,179.

The Midcap Index also felt the pressure, dropping 88 points to 60,381. Meanwhile, the Nifty Bank experienced a more significant decline, falling 541 points to close at 53,834.

Nearly 287 stocks, including major players like ITC, Mahindra and Mahindra (M&M), NTPC, Bajaj Finserv, Bajaj Auto, JSW Steel, Nestle, Sun Pharma, and UltraTech Cement, reached their one-year highs during intraday trading on the BSE.

Several other names, such as Apollo Hospitals, BPCL, Britannia Industries, Colgate-Palmolive (India), Marico, Eicher Motors, Hindalco, Persistent Systems, Pidilite Industries, Shriram Finance, Sun Pharma, Tata Power, and TVS Motor Company, also saw their shares hitting 52-week highs.

The market's lacklustre performance came amidst mixed global cues, with investors closely watching the release of the US core personal consumption expenditures (PCE) price index data due later in the day. Concerns about an economic slowdown in the US eased somewhat after the country's gross domestic product (GDP) grew at an annualized rate of 3% in the last quarter.

Reliance Industries saw a sharp surge in the final hour of trading, closing 2% higher. The IT sector also moved upward following Accenture's positive results and guidance, with stocks rising between 1-2%.

Oil Marketing Companies (OMCs) like BPCL and HPCL registered gains of up to 6% each in today's trade. Meanwhile, Power Grid Corporation experienced a 3% decline after Morgan Stanley downgraded the company to "equal-weight."

Edelweiss Financial Services rose by over 3% following the company's sale of nearly 14% in Nuvama Wealth. Sugar stocks also gained up to 5% on the back of news that the government is considering increasing ethanol and sugar prices.

Tata Power reached an all-time high after receiving a double upgrade from Morgan Stanley, while Westlife Foodworld jumped 6% after Goldman Sachs upgraded the stock to "buy." SJVN Limited rose 5% after signing Memorandums of Understanding (MoUs) with the Maharashtra government for investments worth Rs 48,000 crore.

In another move, Sequent Scientific soared by 12% on news of an Rs 8,000 crore merger with Viyash Life Sciences. Sterling & Wilson Renewable Energy gained 3% following a large trade where equity worth Rs 1,192 crore changed hands.

Weekly Market Wrap-Up

Despite the market ending in the red on Friday, it marked the third consecutive week of gains for the indices. Both frontline indices rose over 1% each, showcasing a generally bullish trend over the week. However, the broader markets underperformed, with the Midcap Index and Nifty Bank witnessing only minor gains.

All sectoral indices ended the week with gains, with the Nifty Metal Index leading the pack, rising by 7%, and the Nifty Auto Index up by 5%. Notably, 40 out of the 50 Nifty stocks saw buying interest, with BPCL, Tata Steel, M&M, and Hindalco emerging as the top gainers.

On the other hand, LTIMindtree, L&T, ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank were among the top losers on the Nifty.

The Nifty Metal Index stood out as one of the top sectoral performers on Friday, trading with a gain of 1%. A majority of its constituents, 13 out of 15, were in positive territory, making it one of the best-performing sectors.

Midcap stocks displayed resilience, with several ending in the green. Reliance Power, NALCO, and Strides Pharma were among the top gainers, showcasing investor interest in these counters despite the broader market volatility.

As the markets enter the final trading sessions of September, investor focus will likely shift to global cues, US economic data releases, and domestic corporate earnings. The continued strength in metal and auto stocks, as well as individual performance by companies in the financial, energy, and healthcare sectors, will be closely watched by market participants.