Sensex drops 548 points, Nifty slips below 22,400 as FMCG, PSU Bank stocks drag

Mumbai, October 12 (IANS) The benchmark equity indices ended sharply lower on Monday, weighed down by selling pressure in FMCG, PSU Bank and IT stocks. Weakness in heavyweight counters dragged the markets lower despite resilience in the broader segment.The Sensex declined 547.65 points, or 0.76 per cent, to settle at 71,924.68. The Nifty fell 157.10 points, or 0.70 per cent, to close at 22,363.35.Commenting on Nifty technical outlook, experts said that the Nifty’s failure to sustain levels above 22,600 turned the positive opening into another sell-on-rise session."The PCR slipped to 0.61, pointing to call-heavy positioning, while India VIX climbed to 15.23, signalling increased demand for downside protection," analysts stated."The Nifty’s immediate support lies in the 22,300–22,200 zone, with a decisive break potentially exposing the 22,000 mark. On the upside, a sustained recovery would require the index to reclaim the 22,500–22,600 band," maket watchers noted.Among the Nifty constituents, Apollo Hospitals Enterprise, ITC and Tech Mahindra emerged as the top laggards, contributing significantly to the benchmark's decline.While frontline indices remained under pressure, broader markets displayed relative strength. The Nifty MidCap index edged up 0.08 per cent, while the Nifty SmallCap index outperformed with a gain of 1.42 per cent.Sectoral performance remained mixed during the session. The Nifty FMCG and Nifty PSU Bank indices registered the steepest losses.On the other hand, the Nifty Media and Nifty Chemical indices bucked the negative trend and ended as the top sectoral gainers.Experts said that despite positive movement in select sectors and broader market indices, losses in key heavyweight stocks and sectors kept the benchmark indices firmly in negative territory by the close of trade."The Middle East remains a key overhang, with continued Houthi attacks on Saudi and regional energy infrastructure keeping concerns over potential supply disruptions and elevated crude oil prices alive," market watchers stated."Large-cap stocks remained under pressure from foreign fund selling, while mid- and small-caps outperformed on expectations of a stronger Q2FY27 earnings season," analysts noted.