Mumbai: The Indian stock market opened on a subdued note on Thursday, with investors turning cautious as the Q3 FY25 results season kicks off.
Sectors such as auto, IT, PSU banks, and financial services witnessed selling pressure, weighing on the overall market sentiment.
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Market Performance Overview
As of 9:27 a.m., the benchmark indices reflected the dampened mood:
- Sensex: Trading at 77,879.72, down by 268.77 points or 0.34%.
- Nifty: At 23,610.55, declining 78.40 points or 0.33%.
On the National Stock Exchange (NSE), market breadth was mixed, with 1,177 stocks trading in the green and 958 in the red.
Other indices also showed declines:
- Nifty Bank: Down 202.90 points or 0.41% at 49,632.15.
- Nifty Midcap 100: Dropped 98.20 points or 0.17% to 56,172.40.
- Nifty Smallcap 100: Slipped 7.70 points or 0.04% to 18,357.95.
Key Drivers Behind the Market Movement
Q3 Results Season Begins
The Q3 results season has started, with TCS among the key companies set to announce its performance. Experts believe these results will set the tone for market expectations, particularly for the IT sector. Positive cues for IT include the strength of the U.S. economy and the rupee’s depreciation.
Sectoral Insights
Premium segments such as hotels, jewelry, premium automobiles, and airlines are expected to post robust numbers, as per market analysts. However, overall market volatility is anticipated due to uncertainties surrounding global economic policies and the upcoming Indian Union Budget.
Top Gainers and Losers
In the Sensex pack, the following were notable performers:
- Top Losers: SBI, Zomato, Sun Pharma, L&T, HDFC Bank, ICICI Bank, UltraTech Cement, Nestle India, Tata Steel, Bajaj Finance, and Power Grid.
- Top Gainers: Kotak Mahindra Bank, Tata Motors, M&M, Asian Paints, TCS, Infosys, and Hindustan Unilever.
Also Read | Indian Stock Market Opens Flat, Nifty Slips Below 23,700 Amid Weak Global Sentiment
Global Market Trends
U.S. Markets
- Dow Jones: Gained 0.25% to close at 42,635.20.
- S&P 500: Increased by 0.16% to 5,918.30.
- Nasdaq: Declined marginally by 0.06% to 19,478.88.
Asian Markets
Performance in Asian markets was mixed:
- Trading in green: Jakarta, Hong Kong, and Seoul.
- Trading in red: China, Bangkok, and Japan.
Foreign and Domestic Investment Activity
Foreign Institutional Investors (FIIs) continued their selling spree in January:
- FIIs sold equities worth Rs 10,419 crore so far this month, including Rs 3,362.18 crore on January 8 alone.
- Domestic Institutional Investors (DIIs) provided some support, buying equities worth Rs 2,716.28 crore on the same day.
With the dollar index at 109 and the 10-year U.S. bond yield at 4.67%, experts expect FIIs to maintain their selling strategy, potentially exerting more pressure on Indian equities in the short term.
Market Outlook and Expectations
The Q3 results will play a pivotal role in shaping market sentiment in the coming weeks. Analysts are keenly watching TCS’s performance to gauge the health of the IT sector. Meanwhile, other premium sectors are expected to show resilience, buoyed by consumer demand.
Volatility may remain high due to the anticipation of U.S. policy decisions and the forthcoming Indian Union Budget. Investors are advised to tread cautiously, keeping an eye on sectoral trends and global market cues.