Mumbai: The Indian stock market opened flat on Friday, with significant action in the IT sector following Tata Consultancy Services’ (TCS) robust Q3 results.
The TCS stock jumped 3.7% in early trade, reaching Rs 4,186 per share, fueling gains in the IT sector, which rose over 2%.
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Market Performance Overview
As of 9:34 AM, the BSE Sensex was trading at 77,442.68, down by 177.53 points or 0.23%, while the NSE Nifty stood at 23,458, declining 68.50 points or 0.29%. Despite the subdued opening, market activity highlighted stock-specific movements driven by quarterly results.
- Nifty Bank: Down 67.95 points (-0.14%) at 49,435.55.
- Nifty Midcap 100: Dropped 273 points (-0.49%) to 55,472.90.
- Nifty Smallcap 100: Declined 101.50 points (-0.56%) to 18,016.85.
On the National Stock Exchange (NSE), 656 stocks traded in green, while 1,477 stocks were in red, indicating a bearish sentiment.
Top Gainers and Losers in Sensex Pack
Top Gainers:
- TCS: +3.7% at Rs 4,186.
- Tech Mahindra
- Infosys
- HCL Tech
- Tata Motors
- Nestle India
- Bajaj Finance
Top Losers:
- IndusInd Bank
- Zomato
- NTPC
- SBI
- Power Grid
- Kotak Mahindra Bank
- Tata Steel
- Axis Bank
- Titan
- Asian Paints
Expert Insights on Market Trends
Market experts attribute the subdued opening to global uncertainties and ongoing earnings season. “TCS’s strong Q3 results reaffirm the resilience of the IT sector, which is likely to attract continued investor interest,” analysts noted. They anticipate increased stock-specific actions as more companies release their quarterly earnings.
However, concerns persist regarding sustained foreign institutional investor (FII) selling. FIIs offloaded equities worth Rs 7,170 crore on Thursday, putting pressure on the broader market. In contrast, domestic institutional investors (DIIs) purchased equities worth Rs 7,639.63 crore, providing some support.
Also Read | Indian Stock Market Ends Lower as Q3 Results Season Kicks Off
Global Market Update
The global markets displayed mixed trends:
- Dow Jones: Gained 0.25% to close at 42,635.20.
- S&P 500: Rose 0.16% to 5,918.30.
- Nasdaq: Declined 0.06%, closing at 19,478.88.
In Asian markets:
- Jakarta and Seoul: Trading in green.
- Hong Kong, China, Bangkok, and Japan: Trading in red.
Market Outlook Amid Uncertainty
Experts caution against expecting a rally in the near term due to global uncertainties, particularly around potential policy actions by the US President-elect. “With sustained FII selling and looming geopolitical concerns, market recovery might take longer,” they warned.
Sectoral Performance
- IT Sector: Leading gains driven by TCS, Tech Mahindra, Infosys, and HCL Tech.
- Banking Sector: Facing pressure, with Nifty Bank and major banks like SBI and Kotak Mahindra Bank declining.
- Midcap and Smallcap Indices: Experiencing broader weakness, reflecting bearish sentiment among retail and domestic investors.
Why TCS’s Q3 Results Matter
TCS’s strong quarterly performance has positioned the IT sector as a key market driver. The robust earnings indicate sustained demand for IT services globally, bolstering investor confidence in the sector. Analysts suggest that IT stocks could continue to outperform in the coming sessions.