Stock market traded largely flat on Friday, October 30, as gains in IT stocks and select heavyweight shares helped offset pressure from elevated crude oil prices and weakness in broader markets. Investors also remained focused on quarterly earnings from key companies, including Reliance Industries and Sun Pharma, due later in the day.
At around 10.23 am, the BSE Sensex was trading at 74,157.19, up just 6.15 points or 0.01%. The NSE Nifty 50 was at 22,921, down 15.75 points or 0.07%.
The benchmarks recovered from a muted opening but struggled to build on the gains made in the previous session, when both indices advanced more than 1% following strong quarterly results from key constituents and the US Federal Reserve’s decision to keep interest rates unchanged.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, “The crude oil headwind is getting stronger with Brent rising above $117. There are reports of the US likely resuming strikes against Iran after the mid-term elections which is due on November 3rd. Even though FII selling has turned weak with occasional buys in recent days, the market construct appears unfavourable for a rally.”
IT STOCKS LEAD SECTORAL GAINS
IT stocks were among the key supports for the market. The Nifty IT index gained 1.60%, with Infosys rising 1.91%, Tech Mahindra advancing 1.88%, TCS gaining 0.81% and HCLTech up 0.94%.
The gains came amid weakness in global AI-linked stocks in Asia, as concerns grew over whether the massive investments being made in artificial intelligence would generate adequate returns. Indian IT companies are being viewed as relatively defensive beneficiaries of this trend, as businesses may increasingly prioritise cost savings, automation and outsourcing over expensive in-house AI investments.
The Nifty Pharma index also advanced 0.77%, while PSU Bank and healthcare stocks traded higher.
Trent was among the top Nifty gainers, surging 5.76%, while InterGlobe Aviation, which operates IndiGo, rose 3.34%. Eternal gained 1.84% and Sun Pharma advanced 1.54%.
However, selling in several heavyweight stocks limited the benchmarks’ gains. State Bank of India fell 1.67%, while BEL declined 1.56%, and Tata Steel lost 1.09%.
Broader markets remained under pressure. The Nifty Midcap 100 fell 1.02%, while the Nifty Smallcap 100 declined 1.57%. The Nifty 100, Nifty 200 and Nifty 500 were also trading lower. India VIX, the market volatility gauge, rose 3.55% to 15.66.
CRUDE OIL REMAINS A CONCERN
Elevated crude oil prices continued to weigh on sentiment. Brent crude rose 1.06% to $116.10 per barrel, while WTI crude gained 1.20% to $103.22.
Oil prices have remained firm amid supply concerns and worsening geopolitical tensions in the Middle East, following attacks by Yemen’s Houthis on Saudi Arabia. Higher crude prices are a concern for India because of its dependence on oil imports and the potential impact on inflation, the rupee and corporate costs.
Investors will also track earnings from heavyweight companies Reliance Industries and Sun Pharma later in the day, which could influence the market’s near-term direction.
