Markets End in Red Amid Earnings Disappointment and Budget Caution

Stock markets closed lower with the BSE Sensex dropping 102 points due to selling in Reliance Industries and Kotak Bank amid muted earnings and anticipation of the Union Budget. Gains in HDFC Bank and Infosys helped limit losses. Broader market indices showed mixed performance, with some sectors declining and others advancing.

Stock markets closed lower on Monday with the benchmark Sensex dropping 102 points due to selling in heavyweight stocks like Reliance Industries and Kotak Bank, spurred by muted earnings and caution ahead of the Union Budget.

Falling for the second consecutive day, the 30-share BSE Sensex fell by 102.57 points or 0.13 per cent to settle at 80,502.08. It had earlier hit an intra-day low of 80,100.65 but managed to recover most of its losses thanks to gains in Infosys and HDFC Bank.

Meanwhile, the broader Nifty of the NSE dipped 21.65 points or 0.09 per cent to 24,509.25, having earlier dropped 168.6 points or 0.68 per cent to 24,362.30 during intra-day trading.

Reliance Industries declined over 3 per cent after it reported a 5 per cent drop in its June quarter net profit. Kotak Mahindra Bank also fell more than 3 per cent after its June quarter earnings failed to impress investors. Other laggards included ITC, State Bank of India, HCL Technologies, and IndusInd Bank.

Conversely, HDFC Bank climbed over 2 per cent following a 33.17 per cent growth in its consolidated net profit for the June 2024 quarter. NTPC, UltraTech Cement, and Mahindra & Mahindra also posted gains.

Analysts attributed spikes in volatility to a conservative economic growth forecast for FY25 and below-estimated Q1 results from key index players. They anticipate sector-based action and further volatility in the markets on Tuesday, the day of the Union Budget announcement.

The broader market exhibited mixed performance as the BSE midcap gauge jumped 1.27 per cent, and the smallcap index climbed 0.83 per cent. Energy, realty, FMCG, and banking sectors saw declines, while commodities, consumer discretionary, financial services, healthcare, industrials, utilities, and power sectors were among the gainers.