Indian Markets End In Red: Financials, FMCG Lead Losses While Broader Indices Show Relative Strength

Indian equities ended lower on Thursday, as weakness in financials, FMCG, and oil and gas stocks weighed on sentiment, despite broader markets outperforming slightly and select safe-haven names seeing buying amid geopolitical tensions.

The Nifty 50 ended down 152 points, or 0.6%, at 24,736, while the Sensex closed 525 points lower, or 0.6%, at 81,167.

The broader markets outperformed, with the Nifty Midcap index losing 0.3% and the Smallcap index ending nearly 0.7% lower.

Retail investor sentiment surrounding the Nifty 50 remained 'bearish.' 

Among sectors, capital goods eked out marginal gains, while financial services, oil & gas, and FMCG stocks led the drag, with the Nifty Financial Services index falling the most by 0.3%.

Nifty losers included HDFC Bank, ITC, Reliance Industries, and ICICI Bank, alongside BPCL and Hindustan Unilever, which also ended in the red.

Additionally, Gensol Engineering shares fell 2% after the National Company Law Tribunal's (NCLT) Ahmedabad bench admitted the company into corporate insolvency proceedings. 

The move follows a petition by state-run IREDA, which alleged loan defaults totaling ₹510 crore.

Meanwhile, Kernex Microsystems India jumped 5% after announcing that its joint venture with VRRC secured two Letters of Acceptance (LoAs) from Southern Railways, Chennai, worth ₹311.03 crore. 

The orders include deployment of the Kavach train collision avoidance system across Chennai Division sections and related infrastructure. 

Kernex holds a 60% stake in the JV, and the projects are slated for completion in 730 and 540 days, respectively.

Manappuram Finance rose 3.3% to hit an all-time high, while Muthoot Finance added 1.9%, as escalating tensions between Israel and Iran prompted investors to seek refuge in safe-haven assets.

From a technical perspective, SEBI-registered analyst Ashish Kyal said Nifty 50 showed a sharp bounce from the 24,460–24,490 zone, which was tested following a gap-down move triggered by the Israel-Iran conflict. 

He noted that prices are once again respecting this prior support zone. 

As long as 24,460 remains intact, he believes dips toward 24,600 can be used as a buying opportunity, with the potential for a gap-filling move toward 24,820.

Meanwhile, SEBI-registered analyst Praveen Girotra said that Nifty 50 is so far holding above the previous week's low, indicating a key support level remains intact.

European shares hit a three-week low after Israel struck Iranian nuclear and missile sites, prompting Iran to launch 100 drones in response.

Meanwhile, Dow futures pointed to a positive open on Wall Street.

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