After opening the day on a negative note, Indian share markets Slipped as the session progressed and ended the day weak.

Benchmark equity indices, BSE Sensex, and NSE Nifty50 ended in red amid the expiry of Nifty50 contracts, mirroring its Asian peers, on Thursday.

At the closing bell, the BSE Sensex stood lower by 495 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 220 points (down 0.9%).

Infosys, L&T, and SBI were among the top gainers today.

Bajaj Auto, Nestle, and M&M on the other hand, were among the top losers today.

The GIFT Nifty ended at 24,836 down by 166 points.

Broader markets ended the day negative. The BSE Mid Cap ended 1.7% lower and the BSE Small Cap index ended 1.4% lower.

Barring the IT sector and media sector, all other Sectoral indices are trading on a negative note with stocks in the metal sector, the auto sector, and the power sector witnessing buying most selling pressure.

Shares of Indigo Paints, CAMS, and Tech Mahindra hit their respective 52-week highs today.

The rupee is trading at 84.06 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% higher at Rs 76,789 per 10 grams.

Meanwhile, silver prices are trading 0.6% lower at Rs 91,660 per 1 kg.

Here are three reasons why Indian Markets are falling today

#1 Auto Index Drags

Shares of Bajaj Auto dropped 12% in trade after the 2 wheeler company said it expects weak festive season sales due to rising inflation, especially in food prices, which has forced consumers to limit their purchases. This statement also impacted other automakers and dragged the broader market.

#2 FII Selling

The FII diverting their funds into Chinese markets worsened the market sentiment. On Wednesday, as per NSE data, FII sold Rs 34.4 bn worth of equities in the Indian markets.

#3 Weakness in Asian Stocks

China's mainline CSI 300, Shanghai, and Hong Kong's Heng Seng were down over 1% in trade as the housing policy briefing in China failed to excite investors and property stocks slumped.

Similarly, Japan's Nikkei last seen was trading lower by 0.6% after weak September trade data.

#4 Big IPO withdrawing liquidity

The big IPOs like Hyundai Motor India IPO are impacting the liquidity in the secondary market. Hyundai Motor India IPO size is Rs 280 bn.

#5 Delayed Rate Cut Expectations

With a sharp rise in domestic inflation, the interest rate cut expectations are to be delayed.

India's annual retail inflation came in at 5.5% in September, its highest level in nine months, due to rising food prices.
 

Nestle Falls 4%. Here's Why

Moving on to news from the FMCG sector, Nestle India's share price dropped 3.9% on Thursday to its intraday low of Rs 2,365 per share on the NSE after the FMCG major reported a marginal fall in the September quarter profit.

The company reported a decline of 0.9% in its net profit at Rs 8.9 bn for the quarter that ended September 2024, in which it faced high commodity prices and some of its key brands faced softer consumer demand.

The company posted a net profit of Rs 9.1 bn in the July-September period a year ago.

Its shares have delivered negative returns of 13% in 2024 so far. The benchmark Sensex outperformed the scrip advancing over 12 percent in the same period.

Nestle India, the maker of popular brands like Maggi, Nescafe, and Kit Kat, reported a flat total income of Rs 51.1 bn, impacted by a decline in revenue from other income sources.

Meanwhile, its parent company, Nestle SA, has lowered its sales and profit forecast for the year, facing challenges in regaining market share as higher prices have led consumers to shy away from branded products.
 

Nalco Jumps 5%. Here's Why

Moving on to news from the aluminum sector, shares of domestic aluminum maker Nalco are higher by nearly 5% in early trade, helped by global major Alcoa Corporation's robust quarterly profit, as well as strong alumina prices.

Lower raw material cost was also one of the factors helping Alcoa's quarterly results.

Futures prices of alumina - a key ingredient in making aluminum - have risen over 45% this year, as supply remains tight.

Alcoa's revenue for the quarter ended September was US$ 2.9 bn, 11.6% higher on YoY basis, while net income was US$ 90 million.

China, which accounts for about half of the world's aluminum output, has continued with record aluminum production, easing global supply risks.

Globally, there is a rising demand for aluminum from electric vehicles and solar cell manufacturers.

A push from China to rev up demand in its housing market and boost economic growth through stimulus is also expected to bode well for the sentiment in metal prices.

More By This Author:

Sensex Today Trades Flat; Nifty Below 25,000
Sensex Today Ends 319 Points Lowe; Nifty Below 25,000
Sensex Today Trades Lower; Nifty Below 25,100