Indian Stock Market Opens Flat Amid US Fed Comments, Sectoral Rotation Observed
Mumbai: The Indian stock market opened flat on Friday, with minor losses as the market began to digest the recent hawkish comments from the US Federal Reserve. On the National Stock Exchange (NSE), buying activity was observed in sectors like auto, media, and energy, while the overall market sentiment remained mixed.
At around 9:32 am, the Sensex was trading at 79,122.61, down by 95.44 points, or 0.12%. The Nifty was at 23,932.10, declining by 19.60 points, or 0.08%. Despite the early losses, the market showed positive trends with 992 stocks advancing, while 694 stocks were in the red.
Sectorally, the market saw pressure in the PSU Bank, Financial Services, FMCG, and metal sectors, while the Nifty Midcap 100 index gained 0.35%, reflecting a 207.45-point increase to 58,763.70. The Nifty Smallcap 100 index also saw an uptick of 0.49% at 19,227.60.
In the Sensex pack, stocks like Axis Bank, ITC, JSW Steel, Power Grid, M&M, Ultra Tech Cement, and L&T were among the top losers. Conversely, TCS, Infosys, Tata Motors, Bharti Airtel, HCL Tech, Tech Mahindra, and Kotak Mahindra Bank led the gains.
The US market closed mixed with the Dow Jones adding 0.04% to close at 42,342.24, while the S&P 500 dropped 0.09% to 5,867.10, and the Nasdaq declined 0.10% to 19,372.77.
Asian markets were also diverse in their performance, with markets in Hong Kong, China, and Japan trading in green, while Jakarta, Bangkok, and Seoul saw declines.
Foreign Institutional Investors (FIIs) continued to reverse their buying spree witnessed earlier in December, with a net selling of ₹12,229 crore this week, a shift that has pressured large-cap stocks, particularly in the financials sector. However, experts believe this trend may not sustain, with quality large-caps expected to recover soon.
On December 19, FIIs sold equities worth ₹4,224.92 crore, while domestic institutional investors (DIIs) bought ₹3,943.24 crore, maintaining some balance in the market.
Experts recommend retail investors to consider adopting a counter-strategy to the FII trend, focusing on quality large-cap stocks, which are expected to bounce back in the near future.
