The Sensex Nifty close on October 30 told two different stories. The headline indices finished higher for a second straight session, with the BSE Sensex up 308.49 points (0.42%) at 74,459.53 and the Nifty 50 up 116.35 points (0.51%) at 23,053.10. Go one layer below the large caps, though, and Friday looked a lot less cheerful.
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Sensex Nifty close October 30: what moved the benchmarks
IT did a lot of the lifting. The Nifty IT index rose 2.32% to 32,606.90, the best showing among the major sectoral indices, according to NSE’s index closing data. Infosys gained 3.37%, Tech Mahindra 1.23%, HCLTech 1.17% and TCS 0.62%, as per India Today’s market wrap.
The biggest Nifty gainers, though, were outside tech. Trent jumped 5.20% and IndiGo (InterGlobe Aviation) added 4.06%, a day after both reported September-quarter numbers. We covered those in our Trent Q2 results and IndiGo Q2 results posts. NTPC (up 2.23%), Power Grid (1.57%) and Eternal (1.54%) also helped.
Pharma was the other bright spot. The Nifty Pharma index rose 1.55% and the Nifty Healthcare index 1.58%.
The Nifty swung between 22,905.10 and 23,118.10 during the day, so it did trade above 23,100 at one point before settling a little lower.
The broader market bled
This is the part that matters if you hold mid and small caps. The Nifty Midcap 100 fell 0.93% and the Nifty Smallcap 100 dropped 1.85%, per NSE data. Even the Nifty 500 ended 0.21% lower, which tells you the gains were narrow and concentrated in a handful of heavyweights.
Several sectors closed in the red. Nifty Consumer Durables was the weakest major sector, down 1.78%, while Auto fell 0.87%, PSU Bank 0.93%, FMCG 0.62% and Metal 0.54%. Among large caps, SBI slipped 1.94%, M&M 1.93%, UltraTech Cement 1.47% and Tata Steel 1.06%.
India VIX, the market’s fear gauge, ended at 15.30, up 1.22% on the day according to NSE.
Why IT rallied while the rest wobbled
Business Standard linked the IT move to an unwinding of the AI trade in global markets, which pushed some money back towards Indian tech names. Vinod Nair of Geojit Investments said, in comments carried by both outlets, that renewed worries over AI valuations spilled into Asian markets, while rising crude prices on reports of fresh US-Iran tensions triggered selling in mid and small caps. Large caps held up better, he said, helped by IT and by pharma and healthcare on encouraging earnings.
Crude remains the sore point. India Today reported that Brent rose 2.18% to $117.38 a barrel on Friday. For an oil importer like India, that feeds straight into the import bill, inflation and the rupee. The rupee itself had a decent day, firming 0.3% to 94.95 against the dollar, which India Today said was its best monthly gain since February.
What it means for next week
Two up days in a row look good on the Sensex chart, but the breadth is weak. When the Nifty rises and the Smallcap 100 falls almost 2% on the same day, the rally is being carried by a few large stocks while most of the market sells off. That can change fast if crude keeps climbing.
For traders, the things to watch on Monday are simple: whether IT can hold Friday’s gains, where Brent goes over the weekend, and whether mid and small caps find buyers. Our October 29 market report has the backdrop to this two-day move.
Disclaimer: This article is for information only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.
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