Sensex snaps 7-day rally; HUL weighs on FMCG stocks

Benchmark indices ended their seven-day winning streak on Thursday, with the Sensex closing 315.06 points or 0.39 per cent lower at 79,801.43, while the Nifty 50 declined 82.25 points or 0.34 per cent to 24,246.70.

Hindustan Unilever Limited (HUL) emerged as the biggest laggard among blue-chip stocks, plunging 4.12 per cent to ₹2,324 following underwhelming quarterly results. The FMCG giant’s poor performance weighed heavily on the sector, which dropped over 1 per cent during the session.

“After an impressive seven-day winning streak, the Nifty experienced a downturn on the monthly derivative expiry session, falling 82 points to close at 24246, while remaining within the previous day’s trading range,” said Vinay Rajani, Senior Technical & Derivative Research Analyst at HDFC Securities.

IndusInd Bank emerged as the top gainer on the NSE, climbing 3.17 per cent to ₹819.35, followed by UltraTech Cement which rose 1.89 per cent to ₹12,175. Other notable gainers included Grasim Industries (up 1.67 per cent to ₹2,730.50), Dr. Reddy’s Laboratories (up 1.59 per cent to ₹1,204.90), and Cipla (up 1.32 per cent to ₹1,554).

Among major losers, Bharti Airtel dropped 1.89 per cent to ₹1,846.10, Eicher Motors fell 1.88 per cent to ₹5,632, ICICI Bank declined 1.64 per cent to ₹1,401, and Eternal followed with a 1.02 per cent decrease to ₹236.80.

Sectoral performance was mixed, with the Nifty Pharma index bucking the trend and gaining nearly 1 per cent, while other sectors like Auto, Bank, IT, and Realty ended in the red with losses between 0.4 per cent and 1.4 per cent.

“Markets took a breather in today’s session with all major indices ending lower. While the global trade developments remained optimistic with the US signalling de-escalation with China, domestic focus remained on earnings,” noted Satish Chandra Aluri of Lemonn Markets Desk.

The weakness extended to broader markets as well, with the Nifty Midcap 100 dipping 0.13 per cent to 54,969.85. The overall market breadth remained negative with 2,063 declining stocks against 1,887 advances on the BSE. Seventy-five stocks hit their 52-week highs, while 25 touched their 52-week lows.

The rupee appreciated 16 paise against the US dollar to settle at 85.26, resuming its upward trajectory.

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, “The current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders.” He added that the market could move up to 24,450-24,500 levels if it breaks above the 24,350 resistance, but could face a correction to 24,000 if it falls below 24,200.

Technical analysts maintain an optimistic outlook despite the day’s losses. “The index has formed a small bear candle which remained enclosed inside previous session price range signaling consolidation after recent strong up move,” Bajaj Broking Research noted in its market commentary. Their analysis points to potential upside targets of 24,550 and then 24,850 in the upcoming weeks, as long as the market holds above Wednesday’s low of 24,120.

Looking ahead, market watchers expect the consolidation phase to continue before the next leg of upward movement begins. “Since key oscillators continue to hover in the overbought zone, a phase of consolidation may persist before the next leg of the up-move begins,” said Rajesh Bhosale of Angel One, suggesting a likely trading range of 23,900 to 24,500 in the near term. Traders are advised to maintain a positive bias and consider buying on dips toward key support levels as the Q4 earnings season progresses.

Published on April 24, 2025