Indian Stock Markets Open Lower as Selling Pressure Mounts Across Sectors
The domestic benchmark indices opened lower on Tuesday, with widespread selling observed across multiple sectors including IT, realty, auto, financial services, FMCG, media, and private banks. The market sentiment remained mixed as global trends reflected weak performance, further affecting domestic indices.
At approximately 9:25 AM, the BSE Sensex was trading at 77,813.49, marking a decline of 434.64 points or 0.56%. Meanwhile, the NSE Nifty was trading at 23,536, down by 108.90 points or 0.46%. Despite the broad-based selling, there were 1,096 stocks in the green on the National Stock Exchange (NSE), while 1,040 stocks were in the red.
Market experts attribute the sluggish start to the weak performance of global equity markets in December. The S&P 500, for instance, has dropped by 2.34%, and the Nifty has fallen by 2.6%. As a result, the markets are entering the New Year with caution, with investors concerned about high valuations and growing uncertainty.
On the sectoral front, the Nifty Bank index declined by 191.50 points or 0.38%, standing at 50,761.25. The Nifty Midcap 100 index also took a hit, down by 0.43% at 56,944.80, while the Nifty Smallcap 100 index saw a marginal drop of 0.11%, standing at 18,618.95.
However, there were some bright spots in certain sectors. The PSU Bank, Pharma, Metal, Energy, Commodities, PSE, and Healthcare sectors saw some buying interest, helping limit the overall market decline.
In the Sensex pack, major IT stocks like Tech Mahindra, HCL Tech, TCS, and Infosys led the losers’ list. Other stocks such as Zomato and NTPC also faced significant losses. On the other hand, Tata Motors, ITC, Tata Steel, SBI, Kotak Mahindra Bank, and Nestle India were among the top gainers.
Globally, the Dow Jones dropped by 0.97%, closing at 42,573.73. The S&P 500 lost 1.07%, closing at 5,906.94, while the Nasdaq dropped by 1.19%, ending the session at 19,486.79. In Asian markets, China was trading in the red, while Hong Kong saw a positive trend.
Market analysts have pointed out that the high U.S. bond yields and a strong dollar are likely to keep foreign institutional investors (FIIs) selling on rallies. Domestic institutional investors (DIIs) are providing some support, but their buying is not sufficient to reverse the market’s downward momentum.
On December 30, FIIs sold equities worth Rs 1,893.16 crore, while DIIs made purchases totaling Rs 2,173.86 crore. With global uncertainty and a cautious domestic outlook, market participants will be closely monitoring the upcoming months for signs of stability.
