Stock market today: Sensex, Nifty 50 back in the red; Reliance, Bajaj Finance top drags | Stock Market News

Stock market today: Losses in shares of select heavyweights, including Reliance Industries, Bajaj Finance, and Bajaj Auto, dragged Indian stock market benchmarks—the Sensex and the Nifty 50—into negative territory on Tuesday, October 15, even as mid and small-cap segments of the market ended with gains. 

Weak global cues, unimpressive Q2 earnings and concerns over sticky inflation also weighed on market sentiment. However, a sharp fall in crude oil prices offered some comfort and capped the losses for the market.

There were no clear cues from global peers. European markets and US futures traded mixed, while oil prices crashed after reports that Israel will not strike Iranian energy targets.

The domestic market lacks new catalysts to sustain its gains, and the lacklustre September quarter earnings raise concerns that the Indian market’s stretched valuations may be unsustainable. 

The market needs good earnings to sustain its valuations. As earnings are a key driver of a company’s intrinsic value, earnings growth justifies higher prices and keeps valuation metrics like the P/E (price-to-earnings) ratio in check, supporting investor confidence. Without solid earnings, valuations become difficult to justify, and stock prices are at risk of a downturn.

Meanwhile, the spectre of inflation has come back to haunt investors. India’s retail inflation rose to a nine-month high in September due to higher food prices. Government data on Monday showed annual retail inflation, based on the all-India Consumer Price Index (CPI), rose to 5.49 per cent in September, higher than 3.65 per cent in August. This is the highest retail inflation rate since December 2023, when it was 5.69 per cent.

The Sensex slipped 153 points, or 0.19 per cent, to 81,820.12, while the Nifty 50 closed 71 points, or 0.28 per cent, lower at 25,057.35.

However, the mid and smallcap segments bucked the trend. The BSE Midcap index rose 0.25 per cent, while the BSE Smallcap index witnessed a smart gain of 1.05 per cent.

Thanks to gains in the mid and small-caps, the overall market capitalisation of BSE-listed firms inched up to nearly ₹463.9 lakh crore from about ₹463.6 lakh crore in the previous session.

Meanwhile, as many as 258 stocks, including Infosys, HCL Tech, Tech Mahindra, Persistent Systems, Divi’s Labs and HDFC Asset Management Company, hit their fresh 52-week highs in intraday trade on the BSE.