Indian equity benchmarks closed significantly lower on Thursday, with the Sensex plunging around 1,248 points to close at 73,581 and the Nifty 50 shedding 384 points to end at 23,063. According to market reports, the Nifty Midcap 100 fell more than 2% and the Nifty Smallcap 100 declined 1.5%, indicating broad-based selling pressure across market segments. The GIFT Nifty on the NSE IX traded lower by 35.5 points, or 0.15% at 23,153, signaling that Dalal Street was headed for a negative start on Monday. Broader markets came under even greater pressure, with the Nifty Midcap 100 falling more than 2% and the Nifty Smallcap 100 declining 1.5%, as reported by market sources.
Brent crude surged above $105 a barrel after renewed uncertainty over US-Iran negotiations and the future of the Strait of Hormuz, triggering a broader sell-off in domestic equity markets. As per The Hindu BusinessLine, Brent crude crossed USD 100/bbl in September and reached around USD 108–109/bbl in mid-September, adding significant pressure to global markets. US index futures were lower while European index futures were trading higher during Asian trading hours, creating mixed signals for global markets. The US-Iran standoff fuelled oil-market volatility and weighed on stocks amid concerns that inflation could prompt Federal Reserve rate hikes. European markets opened higher despite a sharp increase in Brent Crude oil prices, with the November futures for Brent Crude oil rising more than 3% to $107.51 per barrel, as reported by Informist Media. Brent crude was trading 0.31% higher at $102.90 a barrel, while WTI Crude was trading 0.1% lower at $89.28 a barrel according to Bloomberg, with the slight dip in crude oil prices boosting stocks across sectors that typically face higher energy and raw material costs.
According to Pabitro Mukherjee, deputy vice president of research at Bajaj Broking, the Nifty 50 has formed a small bullish candle following a strong bearish candle, indicating absorption of selling pressure and rejection of lower levels. The support for the Nifty 50 is seen at 23020, while the resistance is pegged around 23500–23600. Put sellers built a large position at the 22800 strike price of the Nifty 50 index and the open interest at the strike rose over 15 million contracts to more than 24 million contracts, indicating strong support at this level. The November futures contract for the Nifty 50 index traded 1.3% lower at 22891.10 points, while the Nifty 50 was also 1.3% lower at 22844.80 points. Over 72% of the stocks were in the red, while over 24% of the stocks were in the green, with the fear gauge, India VIX, rising nearly 15% to 13.96975.
Barring Nifty Media, all sectoral indices were in the red, with the Nifty Bank, Nifty Realty, and Nifty Private Bank, being the major laggards, each falling nearly 2%. The Nifty Media was up 0.4%, with Sun TV Network and Prime Focus gaining over 3%. Som Distilleries & Breweries rose nearly 7% to a three-month high at ₹83.80 after the Madhya Pradesh High Court asked it to renew excise licences. Tata Motors shares hit a record low amid macroeconomic concerns, with the blue-chip index down 1.4% at 22,822.60 points and the BSE Sensex down 1.4% at 72,869.19 points. Dr. Reddy's Laboratories was the top gainer, up 1% and lending support to the index, while Hindalco Industries slid 2.5% and was the top loser.
Tonbo Imaging has received SEBI approval for its proposed IPO, comprising an offer for sale of up to 18.09 million shares. The defence electronics maker has a global footprint, with more than 28,000 systems deployed across 24 countries. Orient Cables, a networking and specialty cable manufacturer, plans to raise ₹320 crore through a fresh issue of equity to fund capacity expansion and debt repayment. The IPO will also include an offer for sale of ₹232 crore, with the promoter stake expected to decline to 82.2% from 100% post-issue. Four mainboard and 16 SME IPOs are set to open this week, seeking to raise a combined ₹1,257 crore, coming after a busy previous week that saw 11 mainboard and 17 SME issues hit the market and raise a total of ₹7,260 crore.
