Sensex, Nifty stay flat at noon on monthly expiry day

The Sensex traded flat at 73,600.30 by noon on Tuesday, 27 October, while the Nifty stood at 22,774.75, as the monthly derivatives expiry kept the stock market choppy through the morning session. The flat noon reading followed a lower open, after both benchmarks had closed higher on Monday.

The BSE Sensex had closed at 73,606.75 on Monday and opened at 73,484.38 on Tuesday. By 9.20 am it had fallen to 73,276.08, down 330.67 points, or 0.45 per cent, from the previous close. The NSE Nifty had ended Monday at 22,753.20, opened at 22,708.80 and slipped to 22,671.25 by 9.20 am, a loss of 81.95 points, or 0.36 per cent.

Tuesday was the monthly derivatives expiry day on the National Stock Exchange. On expiry days, traders close, roll over or settle futures and options contracts, and that activity often produces sharp moves in both directions during the session. Gaurav Udani, founder of ThinCredBlu Securities, said in the morning report that extreme volatility was expected, with sharp intraday swings likely to dominate trade, and advised traders against chasing the first move.

Sensex recovers from the morning low

The Sensex clawed back most of its early loss by noon, returning to 73,600.30, close to the previous close of 73,606.75. The recovery showed that buyers stepped in after the first hour, even though the headline indices stayed near where they had started the day. The Nifty also moved back above its opening level, reaching 22,774.75 by noon, above its Monday close of 22,753.20.

Information technology and metals stocks dragged the market lower in early trade, while fast-moving consumer goods and defence shares held firm. That split set the tone for the morning. Stocks that rose early included Tata Consumer Products, Bharat Electronics and Max Healthcare, while Infosys, JSW Steel, Asian Paints and Tata Consultancy Services were among the early fallers.

Sensex and Nifty gainers and losers at noon

By noon, the list of Nifty gainers was led by Tata Consumer, up 5.01 per cent, followed by Bajaj Auto, up 2.58 per cent, Bharat Electronics, up 2.51 per cent, Trent, up 2.35 per cent, and Max Healthcare, up 2.35 per cent. The losers at the same time were Hindustan Unilever, down 2.14 per cent, Tata Consultancy Services, down 1.67 per cent, Grasim, down 1.35 per cent, ICICI Bank, down 1.17 per cent, and ITC, down 0.94 per cent.

The spread between the best and worst Sensex performers was wide, which is common on a monthly expiry day. The headline indices can look flat while individual shares move sharply, because gains in some heavyweight Sensex stocks offset falls in others. Traders watching the expiry therefore tracked stock-specific moves as closely as the index levels.

Monthly expiry keeps the Sensex on edge

The stock market opened on Tuesday with Gift Nifty at 22,760, against Nifty futures closing at 22,774 on the National Stock Exchange. Asian markets traded higher in early deals, which gave some support to sentiment, but domestic traders stayed cautious. Headwinds cited in the morning included inflation, rising crude oil prices, geopolitical tension and higher bond yields.

Attention also stayed on the September quarter results season, with several large companies due to report during the day. Investors were also waiting for the United States Federal Reserve policy decision, which can move Treasury yields and the dollar and, in turn, affect foreign capital flows into emerging market equities. Ponmudi R, chief executive of Enrich Money, said the near-term direction of the market was likely to stay sensitive to geopolitical headlines, crude oil prices and cues from the Fed, and that volatility was expected to persist.

For the rest of the session, the monthly expiry remained the main near-term driver. Positions built for the October contracts had to be settled or carried forward, and that process alone can move prices without any change in company news. The noon levels showed a market that had absorbed the morning fall and steadied, with the Sensex at 73,600.30 and the Nifty at 22,774.75, but with the expiry session still to run.