Closing Bell: Sensex & Nifty End Mixed Following RBI Outcome; FMCG & Financials Weigh, Midcaps Shine

Indian equity markets closed on a mixed note on October 10, as key indices struggled in the final hour of trade, dragged down by losses in FMCG and financial heavyweights. Despite early gains following the Reserve Bank of India's (RBI) status quo policy announcement, the market was unable to sustain the momentum, with benchmark indices losing ground by the end of the session.

The Sensex dropped 168 points to close at 81,467, while the Nifty shed 31 points to end at 24,982. Broader markets, however, saw strong performance with the BSE Midcap index rising by 587 points to close at 59,123, reflecting a 1% gain. The NSE advance-decline ratio remained positive at 2:1, indicating that the majority of stocks traded in the green despite the underperformance of the benchmarks.

The market's downward slide was largely driven by significant losses in the FMCG sector. Four out of the top five Nifty losers were FMCG giants, with ITC, Nestle, Hindustan Unilever (HUL), and Britannia all ending lower. These stocks faced selling pressure amid expectations of subdued quarterly earnings in the sector. Financial stocks also contributed to the weakness, pulling the broader market lower.

In addition to FMCG majors, the cement pack remained under pressure due to expectations of a weak second quarter (Q2). The weak outlook weighed on investor sentiment in companies like UltraTech Cement and ACC, further impacting market performance.

While the Sensex and Nifty struggled, the midcap segment outshined, supported by strong buying interest across various sectors. The BSE Midcap index recorded a robust gain of 587 points, and market breadth tilted in favour of advances. Notable gainers in the midcap space included RITES, which surged over 8% after signing a Memorandum of Understanding (MoU) with Etihad Rail in the UAE.

Another standout performer was CDSL, which snapped an 11-day losing streak, gaining over 7%. Arvind SmartSpaces saw a 6% rise after signing a Rs 600 crore infrastructure project in Bengaluru. Phoenix Mills and Senco Gold also gained up to 4% each on the back of healthy business updates.

Among the losers, Tata Communications was down 11% from its life high reached last week, making it one of the top midcap laggards. The stock faced selling pressure amid concerns over its valuation after a sharp rally.

In addition to midcap outperformance, individual stocks saw notable movements driven by brokerage reports and corporate announcements. Divi's Laboratories, Torrent Power, and Escorts Kubota all rose by up to 8% following positive brokerage notes, while HDFC Asset Management Company (AMC) climbed 4% on similar optimism. Realty stocks also witnessed strong buying as quarterly trends pointed toward positive results, with Oberoi Realty emerging as the top gainer in the sector.

SpiceJet extended its gains by 5% after the company announced another settlement with a lessor, further improving its financial outlook. The announcement followed the airline's earlier settlements, which have been viewed positively by investors.

Meanwhile, Easy Trip saw a 3% rise after the company announced it would consider a bonus issue in its board meeting scheduled for October 14. Trent, a leading retail stock, extended its gains by 3%, hitting a record high for the second consecutive session.

While the broader markets and midcaps delivered a strong performance, sectoral indices showed a mixed picture. The Nifty Bank index closed 68 points lower at 51,089, weighed down by losses in key financial stocks. In contrast, the realty sector was one of the best-performing sectors of the day, buoyed by positive quarterly expectations and increased investor interest.

On the flip side, the FMCG and oil & gas sectors lagged behind, as they were the only sectors to end the day in the red. Stocks in these sectors faced selling pressure, contributing to the overall underperformance of the benchmark indices.

In the currency markets, the Indian Rupee ended flat at 83.96 per US Dollar, unchanged from its previous close. The currency remained stable despite volatility in the equity markets.