Indian Stock Market Opens Lower Amid Weak Global Cues
"Indian stock market opens lower as Sensex drops 325 points and Nifty declines 86 points amid weak global cues. IT and banking sectors see selling pressure; experts highlight positives like declining dollar index and strong Q3 results. Stay updated!"
Mumbai: The Indian stock market opened on a negative note on Friday, influenced by weak global cues and selling pressure in the IT and private banking sectors. As of 9:30 a.m., the Sensex was trading at 76,717.03, down 325.79 points or 0.42 percent, while the Nifty stood at 23,225, declining by 86.80 points or 0.37 percent.
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Market Overview
On the National Stock Exchange (NSE), the market displayed mixed sentiment with 1,118 stocks trading in green and 1,039 stocks in red. The decline was led by key sectors such as IT and banking, which saw significant selling pressure.
Key Indices Performance
- Sensex: Dropped by 0.42% to 76,717.03.
- Nifty: Declined by 0.37% to 23,225.
- Nifty Bank: Down 470.55 points or 0.95% to 48,808.15.
- Nifty Midcap 100: Fell by 208.65 points or 0.38% to 54,275.15.
- Nifty Smallcap 100: Marginally down by 18.20 points or 0.10% to 17,625.10.
Top Gainers and Losers
- Top Losers (Sensex Pack): Infosys, Axis Bank, TCS, HCL Tech, M&M, Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, and IndusInd Bank.
- Top Gainers (Sensex Pack): Reliance Industries, Zomato, L&T, Sun Pharma, Adani Ports, ITC, and Tata Motors.
Global Market Cues
The Indian market’s weak opening mirrored trends from global indices:
- Dow Jones: Declined by 0.16% to close at 43,153.13.
- S&P 500: Fell by 0.21% to 5,937.34.
- Nasdaq: Dropped by 0.89% to 19,338.29.
Asian Markets:
- Trading in the red: Seoul, Bangkok, and Japan.
- Trading in the green: China, Jakarta, and Hong Kong.
Positives for the Market
Despite the downward trend, experts pointed out two key positives that could drive a recovery:
- Decline in Dollar Index and US Bond Yields: A continued downward trend provides relief to emerging markets like India.
- Strong Q3 Results from Reliance Industries and Infosys: Better-than-expected performance by these heavyweights has the potential to lead a minor market recovery.
Also Read | Sensex and Nifty Decline Amid Global Weakness and Foreign Fund Outflows
Expert Insights
Market analysts believe the current correction has made large-cap valuations more reasonable. “Nifty is now trading at around 19 times the estimated FY26 earnings. Long-term investors who can look beyond the volatility caused by foreign institutional investor (FII) selling should consider using dips to buy high-quality large-cap stocks,” they noted.
Institutional Activity
- Foreign Institutional Investors (FIIs): Sold equities worth Rs 4,341.95 crore on January 16.
- Domestic Institutional Investors (DIIs): Bought equities worth Rs 2,928.72 crore on the same day.
Outlook for Investors
According to market watchers, the bounce-back of high-quality large-cap stocks is only a matter of time. They recommend long-term investors to take advantage of the current dips to strengthen their portfolios with fundamentally strong companies.