Indian Stock Market Opens Flat as Sectoral Selling Weighs on Indices
Mumbai: On Thursday, the domestic benchmark indices opened flat as sector-specific selling pressure impacted various segments, including PSU banks, pharma, FMCG, realty, media, energy, and metals on the Nifty.
At 9:31 am, the Sensex was trading at 78,573.16, up by 65.75 points or 0.08%. The Nifty was at 23,766.05, gaining 23.15 points or 0.10%.
Despite the sluggish start, the market trend remained generally positive. On the National Stock Exchange (NSE), 1,366 stocks were in the green, while 529 stocks were in the red.
Market experts remain cautious as Q3 corporate earnings are expected to remain weak, urging investors to focus on sectors that could buck the slowdown.
The Nifty Bank index showed modest gains, rising 21 points or 0.04% to 51,081.60. The Nifty Midcap 100 index was trading at 57,471.35, up by 20.45 points or 0.04%, and the Nifty Smallcap 100 index stood at 18,961.95, increasing by 2.15 points or 0.01%.
In terms of sectoral performance, buying was witnessed in Auto, IT, financial services, and private banks on the Nifty. On the other hand, sectors like PSU banks, pharma, and metals experienced selling pressure.
Among the top gainers in the Sensex pack were Bajaj Finance, Kotak Mahindra Bank, Tata Motors, Bajaj Finserv, UltraTech Cement, Maruti Suzuki, M&M, Infosys, Zomato, IndusInd Bank, and ICICI Bank. Meanwhile, NTPC, HDFC Bank, Asian Paints, Bharti Airtel, ITC, and Tech Mahindra were among the top losers.
On the global front, the Dow Jones Industrial Average declined by 0.07%, closing at 42,544.22, while the S&P 500 dropped 0.43% to 5,881.60, and the Nasdaq fell 0.90%, closing at 19,310.79 during the previous trading session.
Asian markets displayed mixed trends, with Jakarta trading in the green while Hong Kong, China, Bangkok, and Seoul were trading in the red.
Experts note that Foreign Institutional Investors (FIIs) are likely to maintain their selling stance as the dollar strengthens and US bond yields remain attractive. This makes emerging markets less appealing in the near term. However, domestic institutional investors (DIIs) are stepping in to support the market at lower levels. Despite this, DIIs’ buying may not be enough to push the market higher unless growth and earnings recovery signals emerge.
FIIs sold equities worth Rs 1,782.71 crore on January 1, while DIIs bought equities worth Rs 1,690.37 crore on the same day.
