Nifty, Sensex End 7-Day Winning Streak Amid Expiry-Driven Volatility; FMCG Stocks Weigh Heavily

After a robust seven-day rally, Indian equity markets cooled off on April 24, with the Nifty and Sensex ending lower due to monthly expiry-related volatility and disappointing earnings from key FMCG players.

At 12:01 PM, the Sensex was down 263.54 points (0.33%) at 79,852.95, while the Nifty slipped 72.60 points (0.30%) to 24,256.35. Market breadth was mixed, with 1,956 stocks advancing, 1,350 declining, and 111 remaining unchanged.

The FMCG index was the worst-performing sector, falling nearly 1%. Pressure came from weak quarterly numbers by heavyweights such as Hindustan Unilever, Nestle India, and Tata Consumer Products.

On the other hand, pharma stocks led the gains, with the Nifty Pharma index climbing 1.3%. Natco Pharma, Divi’s Laboratories, and Ajanta Pharma surged, with some rising as much as 12%.

Broader markets outperformed large-caps. The Nifty Midcap 100 saw marginal gains of 0.03%, and the Nifty Smallcap 100 rose by 0.5%.

Meanwhile, market volatility edged higher. The India VIX—a measure of market fear—climbed 3% to 16.43, signaling caution among traders ahead of the April F&O series expiry.

UBS Revises India Outlook to 'Neutral'

International brokerage UBS upgraded its stance on Indian equities from 'underweight' to 'neutral' in its Asia-Pacific equity strategy report. However, it noted a more favorable risk-reward setup in China in the near term. While India checks several strategic boxes—including low external debt and resilient earnings—UBS cited stretched valuations as a reason for its cautious view.

Market Outlook: Valuation Concerns, Global Risks

Analysts anticipate higher volatility in the near term due to the F&O expiry and ongoing corporate earnings announcements. Foreign investors have turned net buyers, with Rs 21,000 crore worth of inflows since April 7. They’ve also begun covering their short positions in index futures, though 67% remain net short—indicating that dips may attract buying interest.

"Despite near-term volatility, buying at lower levels is likely," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

However, market watchers warn that elevated valuations—Nifty is currently trading above 20x FY26 earnings—could cap further upside. Additionally, geopolitical developments, including India’s response to recent terror attacks, may impact sentiment.

"In the short run, earnings will drive moves, but investors must stay cautious amid potential external shocks," advised VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.