Indian Stock Market Declines as Investors Remain Cautious Amid Mixed Global Cues
The Indian stock market's bullish momentum slowed down on Friday after a strong start to the New Year, as investor sentiment turned cautious amid mixed global cues.
Mumbai: The Indian stock market’s bullish momentum slowed down on Friday after a strong start to the New Year, as investor sentiment turned cautious amid mixed global cues. Heavy selling pressure was seen across key sectors, including IT, financial services, and pharmaceuticals.
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The Sensex ended the day at 79,223.11, down by 720.60 points, or 0.90%, while the Nifty closed at 24,004.75, falling by 183.90 points, or 0.76%. The Nifty Bank index ended at 50,988.8, losing 616.75 points, or 1.20%. The Nifty Midcap 100 index fell by 177.15 points, or 0.30%, and the Nifty Smallcap 100 index closed lower by 46.65 points, or 0.24%.
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Key Sectors and Stock Performance
Experts attribute the downturn to losses in major sectors like IT, pharmaceuticals, healthcare, and banking. Despite initial optimism regarding earnings growth for the upcoming quarter, weak economic indicators have dampened expectations, contributing to the volatility in the market.
On the Bombay Stock Exchange (BSE), a total of 2,115 stocks closed in the green, while 1,871 stocks ended in the red, and 117 stocks remained unchanged. Sectors that saw positive movement included PSU Banks, FMCG, Metals, Media, Energy, and Commodities.
Top Gainers and Losers
Among the top Sensex losers were Zomato, HDFC Bank, Tech Mahindra, TCS, ICICI Bank, Sun Pharma, HCL Tech, ITC, L&T, M&M, and Bharti Airtel. On the other hand, Tata Motors, Titan, Nestle India, Hindustan Unilever, Maruti Suzuki, NTPC, IndusInd Bank, and Tata Steel emerged as the top gainers.
Market Outlook
Foreign Institutional Investors (FIIs) bought Rs 1,506.75 crore worth of equities on January 2, while Domestic Institutional Investors (DIIs) bought Rs 22.14 crore worth of stocks on the same day.
According to Rupak De from LKP Securities, Nifty faced resistance at the 50 EMA on the daily chart, leading to a market correction. However, sentiment remains positive, as the index closed above the 24,000 level. De suggests that if Nifty breaks above 24,220, it could move toward 24,500, while a decline below 24,000 could push the index to 23,700.
