Synopsis
The Indian stock market started the week on a downtrend, with the Sensex dropping below 75,000 due to unfavorable global cues and significant selling in the IT and financial service sectors. Analysts indicate ongoing challenges from foreign institutional investor selling and international uncertainties.Key Takeaways
- Indian benchmark indices opened lower.
- Sensex and Nifty experienced significant declines.
- Foreign institutional investors continued selling.
- Global uncertainties impact market performance.
- Gold prices reached record highs amidst volatility.
Mumbai, Feb 24 (NationPress) The Indian benchmark indices commenced the week on a negative note on Monday, influenced by unfavorable global signals, with significant selling observed in the IT and financial service sectors during the initial trading session.
As of approximately 9:34 am, the Sensex was down by 541.66 points or 0.72 percent, trading at 74,769.40, while the Nifty index fell by 158.40 points or 0.69 percent to reach 22,637.50.
The Nifty Bank was down by 447.55 points or 0.91 percent, settling at 48,533.65. The Nifty Midcap 100 index stood at 49,699.45 after a drop of 786.75 points or 1.56 percent. The Nifty Smallcap 100 index fell to 15,363.35 after decreasing by 273.55 points or 1.75 percent.
Market analysts suggest that the indices are facing challenges due to ongoing selling by foreign institutional investors (FIIs) and global uncertainties surrounding US President Donald Trump's trade tariffs.
After the initial decline, the Nifty could find support levels at 22,700, followed by 22,600 and 22,500. On the upside, immediate resistance may occur at 22,900, with further levels at 23,000 and 23,100, as per market observers.
Hardik Matalia from Choice Broking noted, "The Bank Nifty charts suggest potential support at 48,500, followed by 48,200 and 47,900. Should the index advance, 49,200 would represent the first key resistance level, with further resistance at 49,500 and 49,700."
Within the Sensex constituents, Zomato, HCL Tech, PowerGrid, NTPC, IndusInd Bank, HDFC Bank, Tech Mahindra, TCS, SBI, and Infosys were among the top losers. In contrast, Nestle India, Bajaj Finserv, Sun Pharma, and ITC emerged as the leading gainers.
In the previous trading session on Friday, the Dow Jones index fell by 1.69 percent, closing at 43,428.02. The S&P 500 decreased by 1.71 percent to settle at 6,013.13, while the Nasdaq dropped by 2.20 percent, closing at 19,524.01.
Across Asian markets, cities like Seoul, China, Bangkok, Japan, Jakarta, and Hong Kong were also trading lower.
Gold and silver prices experienced significant volatility last week amid global uncertainties tied to tariff apprehensions. Gold has reportedly risen for the eighth consecutive week in international markets, reaching record highs, according to experts.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, stated, "The dollar index witnessed profit-taking at elevated levels due to disappointing US services PMI data, which fell below the 50 threshold for the first time in 25 months. Additionally, the surge in US jobless claims contributed to a decline in the dollar index."
On February 21, FIIs continued to be net sellers for the third consecutive day, offloading equities worth Rs 3,449.15 crore. In contrast, domestic institutional investors (DIIs) maintained their net buying streak for the 13th day, acquiring equities worth Rs 2,884.61 crore.
