Indian Stock Market Opens Flat, Nifty Slips Below 23,700 Amid Weak Global Sentiment
Indian stock markets opened flat today, with Nifty slipping below 23,700 due to weak global sentiment. Investors are cautious amid global economic uncertainties.
Mumbai: The Indian stock market began Wednesday’s trading session on a cautious note, opening flat as selling pressure persisted in several key sectors, including auto, IT, PSU banks, financial services, FMCG, metals, realty, and media.
Amid weak global cues and cautious investor sentiment, benchmark indices showed a marginal decline.
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Market Opening Update
At 9:28 AM, the Sensex was trading at 78,014.77, down by 184.34 points or 0.24%. The Nifty 50 dropped 45.70 points or 0.19%, settling at 23,662.2.
On the National Stock Exchange (NSE), market breadth leaned towards negativity, with 749 stocks trading in green while 826 were in the red.
Sectoral Performance
- Nifty Bank: Declined 117.25 points or 0.23%, standing at 50,084.90.
- Nifty Midcap 100: Slipped 463.95 points or 0.82%, trading at 56,405.35.
- Nifty Smallcap 100: Registered a minor drop of 105.35 points or 0.56%, trading at 18,568.10.
Sectors witnessing the most selling pressure included auto, IT, PSU banks, and financial services, while some resilience was seen in selective stocks.
Key Drivers Impacting the Market
Global Macros Weigh on Indian Markets
Market experts attributed the lackluster performance to strong U.S. economic data, which has impacted emerging markets like India:
- US 10-Year Bond Yields: Spiked to 4.67%, driven by stronger-than-expected jobs data and robust performance in the services sector.
- Federal Reserve Policy Outlook: Rising bond yields suggest that the Fed may maintain its current interest rate levels in January, strengthening the U.S. dollar further and putting pressure on global equities.
Impact on Indian Macros
In response to global trends, the Reserve Bank of India (RBI) is now expected to hold interest rates in its February meeting, contrary to earlier market expectations of a rate cut.
FII and DII Activity
- Foreign Institutional Investors (FIIs): Sold equities worth ₹1,491.46 crore on January 7.
- Domestic Institutional Investors (DIIs): Purchased equities worth ₹1,615.28 crore, partially offsetting the selling pressure.
Also Read | Sensex and Nifty Plunge as Monday Blues Hit Indian Stock Market
Top Gainers and Losers
Top Losers:
- Zomato
- Tech Mahindra
- Tata Motors
- Infosys
- IndusInd Bank
- HCL Tech
- HDFC Bank
Top Gainers:
- Maruti
- Sun Pharma
- Nestle India
- Larsen & Toubro (L&T)
- PowerGrid
- ITC
- Mahindra & Mahindra (M&M)
- Axis Bank
- Kotak Mahindra Bank
Global Market Trends
In the previous trading session:
- Dow Jones: Declined 0.42%, closing at 42,528.36.
- S&P 500: Dropped 1.11%, settling at 5,909.
- Nasdaq: Slumped 1.89%, closing at 19,489.68.
Asian Markets Performance
- Green: Jakarta, Seoul.
- Red: Hong Kong, China, Bangkok, Japan.
Expert Analysis and Market Outlook
Experts believe that the current market trends reflect an overreaction to global economic cues. While the Indian market faces headwinds from international macroeconomic factors, the resilience of certain sectors like pharma, FMCG, and select banking stocks provides hope for stability.
“The current selling pressure may continue in the short term, driven by FII outflows and global uncertainties. However, DIIs’ active participation and improving domestic fundamentals could cushion the downside and help markets recover,” analysts stated.
