Tuesday’s slump in Indian equities was led by banking and real estate companies, which followed a dip in Asian peers due to conflicting trade data from China.
Of the 13 key sectors, nine collapsed. Financials with a high weighting dropped 0.5%. In the past three sessions, financials had increased by 2.05%.
Realty saw a drop of 4% in Sobha after reporting a decline in September-quarter profit, which contributed to a nearly 1% loss. The real estate index has increased for seven consecutive sessions, gaining about 14%.
Small- and mid-cap stocks, which have a stronger domestic emphasis, did better than the blue-chip index, rising 0.2% apiece.
Asian markets fell, with the MSCI Asia ex-Japan index down 1.2% after statistics revealed that October saw an unexpected increase in imports but a decrease in China’s exports.
After the recent increase, analysts anticipate that the benchmark Nifty will settle around present levels. Following the U.S. Federal Reserve’s rate pause and better rate outlook, the Nifty 50 and Sensex increased by more than 2% each in the previous three days.
“While the interest rate outlook has improved, we do not expect a rate cut in the U.S. in the next six months” Amit Kumar Gupta, founder of Fintrekk Capital, “benchmark Nifty will trade in a narrow range, while foreign outflows would likely continue till the expectations of a rate cut gets priced in the U.S.”
Varun Beverages had a 3% increase in value among individual stocks following a target price increase by CLSA and Jefferies, which cited robust performance in the packaged beverage sector. Strong volumes helped the Pepsi India bottler surpass its profit projection for the September quarter.
Divi’s Laboratories had a 3% loss after the company was downgraded by multiple brokerages due to lower-than-expected quarterly profits. One of the biggest loses on the Nifty 50 was Divi’s Laboratories.