Nifty slips, Sensex sheds 800 points as all sectors slide; India VIX up 3%

 

On November 12, after initially showing strength, the Nifty and Sensex indices reversed course, closing in negative territory. The Sensex dropped by 820.97 points, or 1.03 percent, to end at 78,675.18, while the Nifty shed 257.80 points, or 1.07 percent, to close at 23,883.50. The broad market decline was influenced by underperformance in the auto and FMCG sectors, alongside cautious investor sentiment ahead of the October Consumer Price Index release expected later in the day.

Mid- and small-cap indices followed suit, losing 1 percent and 1.3 percent, respectively, as signs of fatigue emerged in these segments. Although mid- and small-caps have outperformed Nifty with a 25 percent year-to-date gain compared to Nifty’s 13 percent, today’s drop showed a pullback across sectors. Meanwhile, the India VIX volatility index rose over 1 percent, settling just above 14, indicating heightened market uncertainty.

Auto stocks faced the brunt of the decline, with Nifty Auto tumbling nearly 2 percent. Notable decliners included Tata Motors, M&M, Maruti Suzuki, and Bajaj Auto. FMCG stocks also weighed down the market, led by losses in Britannia Industries, Nestle, and HUL. Nifty Bank, Energy, Infra, Metal, and PSU Bank sectors were down over 1 percent each.

Hyundai Motors, a recent entrant to the market, extended its morning losses due to disappointing Q2 results. The company reported a 16 percent drop in consolidated net profit to Rs 1,375 crore for Q2FY25, compared to Rs 1,628 crore in the same period last year, largely due to reduced domestic sales and exports. Revenue from operations also declined by 7.5 percent to Rs 17,260 crore year-on-year.

Britannia Industries was among the biggest laggards, with its stock plunging nearly 8 percent after reporting weaker-than-expected earnings. The FMCG company’s Q2 net profit dropped 9.4 percent year-on-year to Rs 531.5 crore, while revenue grew modestly by 5 percent to Rs 4,667.6 crore.

Real estate stocks managed to buck the trend, though their gains were modest by the end of the day. The Nifty Realty index edged up 0.2 percent, losing most of its early gains when it had been up 2 percent. DLF, Macrotech Developers, and Godrej Properties contributed to this resilience. Real estate stocks have seen a strong year so far, with the Nifty Realty index gaining 26 percent year-to-date.

The Nifty IT index also posted a slight gain of 0.3 percent, providing some relief amid the broader selloff.

The day’s biggest losers included Britannia Industries, HDFC Bank, NTPC, Asian Paints, and Bharat Electronics. Among the gainers were Trent, HCL Technologies, Sun Pharma, Infosys, and Reliance Industries.