Sensex Pares Morning Gains, Nifty Slips Below 24,500 Amid Volatility; Auto, Metal Stocks Drag

 In a day marked by heightened volatility, Indian equity benchmarks struggled to maintain their early momentum. The BSE Sensex erased morning gains, closing with a marginal dip, while the Nifty 50 index fell below the critical 24,500 mark. Investor sentiment remained cautious amidst global uncertainties and mixed domestic cues.

Market Snapshot

• Sensex closed 0.3% lower at 82,340 points.
• Nifty 50 ended at 24,490, declining 0.5%.

Sectoral Performance

Auto and metal stocks were the biggest laggards in today’s trade:

• Auto Index fell by 1.8%, with Maruti Suzuki and Tata Motors witnessing declines of 2.3% and 1.5%, respectively.
• Metal Index dropped by 2.2%, as Vedanta and Tata Steel shed over 3%.

On the other hand, IT and FMCG stocks provided some support. Infosys rose by 0.7%, and Hindustan Unilever added 1.1%.

Key Drivers

1. Global Cues: Asian markets traded mixed, with concerns over China's economic recovery weighing on investor sentiment.
2. Domestic Factors: Persistent FII outflows and anticipation around upcoming Reserve Bank of India policy announcements added to the volatility.
3. Commodity Prices: Weakness in global commodity prices dragged metal stocks, further pressuring the indices.

Analysts' Take

Market analysts point to cautious optimism. "The market is reacting to both global uncertainty and specific domestic concerns. While there are pockets of strength in defensive sectors like IT and FMCG, cyclical sectors are under pressure," said a senior analyst at Motilal Oswal.

Outlook

With the earnings season approaching and geopolitical tensions still influencing global markets, volatility is likely to persist in the near term. Experts advise investors to remain cautious and focus on fundamentally strong stocks.

Stay tuned for more updates on market movements and analysis.