Sensex and Nifty remained flat; Nifty Bank declined ahead of the monthly F&O expiry.

Sensex and Nifty Trade Steady; Nifty Bank Slips as Monthly F&O Expiry Looms

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: September 25, 2024

Summary: Right before the expiry of September futures and options contracts, the gauge of banking shares on the National Stock Exchange, or Nifty Bank, was trading flat.

The benchmarks for Indian equities are trading in a narrow range, resisting a global market rally sparked by China's stimulus policies to boost its flagging economy. The Nifty 50 index has intraday highs of 25,954 and lows of 25,891, while the Sensex is trapped in a range of 253 points.

The Chinese government helped the global markets and the declining economy by releasing a stimulus plan. To bring the nation out of the deflation and lead it towards the growth target, the Central Bank of China revealed its largest economy-boosting plan since the COVID-19 outbreak.

After the Chinese government announced its stimulus plans, the global markets declined, with many hitting new records.

The US Dow Jones and S&P 500 reached all-time highs thanks in part to mining equities, since China is one of the world's largest markets for raw commodities used in mining, like iron ore.

Before the September futures and options contracts expire for the month, the measure of banking shares on the National Stock Exchange Nifty Bank index traded on a flat in India.

There is widespread selling pressure as eleven of the thirteen sector gauges that the National Stock Exchange has collected were trading lower, with the Nifty FMCG index seeing a 1% decline. The PSU Bank, real estate, consumer durables, healthcare, and oil and gas indices declined 0.5%.

The sell-off in mid- and small-cap stocks is helped by a 0.7% decline in the Nifty Midcap 100 index and a 2.2% decline in the Nifty Smallcap 100 index.

Tata Consumer Product is the biggest loser, as their shares dropped from 2.12% to Rs 1,186. LTI Grasim Industries, Nestle India, Britannia Industries, Tech Mahindra, Mindtree, Tata Motors, Shriram Finance, and Hindustan Unilever were among the notable losers.

The top scorers included Power Grid, Divi's Labs, HDFC Bank, Hindalco, Mahindra & Mahindra, Tata Steel, and Axis Bank.

On the BSE, 1,986 equities were rising while 1,649 were falling, indicating a negative total market breadth.

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