Closing Bell: Market Ends Mildly Lower, Sensex & Nifty Volatile; Reliance & IndusInd Bank Drag Most

The Indian stock market witnessed a volatile trading session on October 1, with benchmark indices ending in the red for the third consecutive session. The Nifty closed below the 25,800 mark, and the Sensex slipped, reflecting growing concerns over a widening current account deficit and weaker-than-expected manufacturing data.

The Sensex ended the day down by 33 points, closing at 84,266, while the Nifty dipped by 14 points, settling at 25,797. Major drags included heavyweights Reliance Industries (RIL) and IndusInd Bank, both of which contributed significantly to the market's subdued performance. In contrast, IT stocks provided some support, helping prevent a steeper decline.

Note: Market participants will have a breather as trading will remain closed on October 2 in observance of Mahatma Gandhi Jayanti.

Sectorally, the market painted a mixed picture. Buying interest was prominent in the media, auto, and IT sectors, while the telecom, power, FMCG, Oil & Gas, and realty sectors witnessed selling pressure.

The BSE Midcap index managed to close 0.3% higher, while the Smallcap index outperformed, gaining 0.5%, showcasing resilience among mid and smallcap stocks. The Nifty Bank, however, slid by 56 points, closing at 52,923.

Amid the volatility, a total of 239 stocks on the BSE touched their 52-week highs. Notable names included Akzo Nobel, Balrampur Chini, BASF, Bombay Burmah, Britannia Industries, Deepak Fertilisers, EID Parry, Fortis Healthcare, Hindalco Industries, ICICI Prudential, JM Financial, Lloyds Metals, Metropolis, NALCO, Polycab India, Shree Renuka Sugars, Tata Communications, and V-Mart Retail.

The auto sector ended the day largely in the red following the release of monthly sales figures. Despite reporting strong monthly sales, Bajaj Auto shares fell by 2%. Tata Motors stock slipped 1% as September sales numbers fell short of market estimates. Mahindra & Mahindra (M&M) bucked the trend, with its shares rising by 2% on the back of healthy monthly sales and a positive outlook.

Tech Mahindra emerged as the top gainer on the Nifty, with a 3% uptick, following a positive note from a leading brokerage. Shares of upstream oil companies like ONGC dropped 2% due to a fall in crude oil prices. Manappuram and Muthoot Finance faced selling pressure, slipping 3-4% following the Reserve Bank of India's recent directives. Took a hit as Macquarie forecasted subdued demand for the sector, affecting companies in this space.

Angel One experienced a significant intraday surge, gaining as much as 7% following news of a revision in its brokerage rates. However, the stock failed to maintain its gains, closing 6% below its intraday highs.

Shares of airline companies, including IndiGo and SpiceJet, soared after oil marketing companies announced a cut in Aviation Turbine Fuel (ATF) prices. The sugar sector witnessed an upward trend, with Dalmia Bharat Sugar and Balrampur Chini both rising 4% each. Overall, the market breadth was positive, with the advance-decline ratio standing at 1:1.

PB Fintech managed to recover from its losses on Monday, ending the day with a gain of 7%, showcasing a remarkable reversal in sentiment. However, not all stocks fared as well, with some failing to sustain early momentum.