NIFTY50 and SENSEX trade in red, Nifty Bank outperforms, gaining over 400 points

The Indian markets slipped into the red after Monday's gains. NIFTY50 continued to hover around the 24,200 level, and the SENSEX slipped below the major psychological level of the 80,000 mark after snapping a six-session losing streak on Monday.

The Indian stock market was weighed down by auto and pharma stocks, while caution prevailed due to a largely tepid earnings season and persistent foreign selling. By midday, the NIFTY50 was down by 150 points at 24,195, and the SENSEX was down by 440 points at 79,562. India Vix jumped by 2.34, showing an increase in volatility. The Nifty Bank remained steady after a gap-up start. The Nifty Bank trades at 51,650 up by over 400 points.

Markets started the week on a positive note, though a cautious stance persists due to uncertainty around the U.S. presidential election, rising treasury yields, a muted domestic earnings season, and ongoing FII selling in the domestic market.

The NIFTY50 index has dropped more than 7.5% from its record high on September 27, weighed down by foreign outflows over the last 21 sessions. The 14-period RSI touched 30 last week for the first time since October 2023.

On the sectoral front, five out of 13 sectors were trading in the green, led by Nifty Bank (+0.7%) and Nifty Financial Services (+0.6%). Conversely, Nitfy Auto was down 2% to emerge as the top loser. All the 15 stocks in the index declined. Meanwhile, Nifty Pharma lost 1.8%. Broader markets were in red following the frontline indices, with the Nifty Smallcap 100 and Nifty Midcap 100 plunging 0.46% and 0.5%, respectively. Market breadth seemed nearly equal, with 1,129 advancing stocks compared to 1,462 declining ones.