New Delhi, 21 October (H.S.): The domestic stock market surrendered its early gains and closed in the red for the second consecutive trading session on Wednesday, despite the ongoing festive season. After opening on a strong note, both benchmark indices came under sustained selling pressure as investors booked profits at higher levels, dragging the Sensex and Nifty sharply down from their intraday peaks.

Although information technology (IT) stocks helped the market stage a strong recovery from its lows during the session, the rebound failed to hold amid global pressures and profit-booking in other heavyweight stocks. At the close of trading, the Sensex was down 0.19 per cent, while the Nifty ended 0.34 per cent lower.

The selling pressure drove the Sensex down more than 1,450 points from its intraday high. The Nifty also fell more than 470 points from its peak and closed below the psychologically significant 23,000 mark. The sharp swings and widespread selling wiped approximately Rs 6.73 lakh crore off investors’ wealth during the session.

The BSE Sensex opened at 74,337.93, gaining 485.03 points, or 0.66 per cent, against its previous close of 73,852.90. Buying continued in the early minutes of trading, lifting the index by 829.29 points, or 1.12 per cent, to an intraday high of 74,682.19.

However, the rally proved short-lived. Profit-booking began within the first 20 minutes of trading, erasing the Sensex’s initial gains and pushing it into negative territory.

As selling intensified, the index plunged 1,452.74 points from its intraday high to a low of 73,229.45, down 623.45 points, or 0.84 per cent. It subsequently recovered some ground, supported by buying in IT stocks at lower levels. After recovering 480.24 points from its intraday low, the Sensex eventually closed at 73,709.69, down 143.21 points, or 0.19 per cent.

The NSE Nifty followed a similar trajectory. It opened at 23,016.00, gaining 127.05 points, or 0.55 per cent, from its previous close. Supported by early buying, the index climbed 231.95 points, or 1.01 per cent, to an intraday high of 23,120.90.

Selling pressure subsequently intensified, wiping out the index’s initial gains and pushing it into negative territory. The Nifty dropped more than 471 points from its intraday peak, touching a low of 22,649.90, down 239.05 points, or 1.04 per cent.

Buying in heavyweight IT stocks provided some support later in the session, allowing the index to attempt a recovery shortly before the close. The Nifty eventually settled at 22,811.35, down 77.60 points, or 0.34 per cent, after recovering 161.45 points from its intraday low.

IT Stocks Defy the Downtrend

IT stocks were the standout performers during Wednesday’s session, with the Nifty IT index surging 2.88 per cent. In contrast, banking and automobile stocks witnessed sustained profit-booking. The Nifty Bank index declined 0.92 per cent, while the Nifty Auto index fell 1.54 per cent.

The Nifty Financial Services index slipped 1.18 per cent, and the FMCG index ended 0.58 per cent lower. Selling pressure was also pronounced in the broader market, with the Nifty Midcap 100 index declining 1.58 per cent and the small-cap index falling 2.37 per cent.

Investors’ Wealth Shrinks by Rs 6.73 Lakh Crore

The market decline resulted in a substantial erosion of investors’ wealth. The combined market capitalisation of companies listed on the BSE fell to a provisional Rs 461.78 lakh crore at the end of Wednesday’s session, compared with Rs 468.51 lakh crore on the previous trading day, Monday.

The difference amounted to approximately Rs 6.73 lakh crore, reflecting the sharp decline in the overall market valuation.

Market Breadth Remains Overwhelmingly Negative

Trading activity on the NSE remained broad-based, with 3,297 stocks actively traded during the session. Of these, 459 shares closed higher, while 2,838 ended in negative territory.

Among the 30 Sensex constituents, 10 stocks advanced, 19 declined and one remained unchanged. On the Nifty, 13 of the 50 constituent stocks closed in positive territory, while 37 ended lower.

Top Gainers and Losers

Among the market heavyweights, Infosys led the gainers with a rise of 3.30 per cent. HCL Technologies advanced 3.21 per cent, Tech Mahindra gained 3.13 per cent, Tata Consultancy Services (TCS) climbed 2.77 per cent, and UltraTech Cement rose 1.87 per cent. These stocks were the top five gainers of the session.

On the losing side, Bajaj Finance fell 3.27 per cent, followed by Eternal, which declined 2.45 per cent. Eicher Motors dropped 2.43 per cent, Adani Enterprises lost 2.37 per cent, and Nestlé India slipped 1.51 per cent. These stocks featured among the session’s five biggest losers.

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Hindusthan Samachar / Jun Sarkar