Indian Stock Market Starts Lower Due to Weak Global Signals
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Synopsis
The Indian stock market began with a decline on Friday, influenced by weak global signals and selling pressure in key sectors. Experts note potential recovery from major stocks despite ongoing volatility.
Key Takeaways
- Indian stock market opens lower
- Weak global cues impact trading
- IT and private bank sectors see selling
- Experts see potential recovery with Reliance and Infosys
- FIIs continue to sell, domestic institutions buy
Mumbai, Jan 17 (NationPress) The Indian stock market commenced on a negative note on Friday, influenced by weak global cues with notable sell-offs in the IT and private banking sectors.
As of approximately 9:30 am, the Sensex traded at 76,717.03, reflecting a drop of 325.79 points or 0.42 percent, while the Nifty was at 23,225, down by 86.80 points or 0.37 percent.
On the National Stock Exchange (NSE), 1,118 stocks were in the green, compared to 1,039 stocks in the red.
Experts cite two positive indicators for the market: firstly, a declining trend in the dollar index and US bond yields, and secondly, Q3 results from major players Reliance Industries Limited and Infosys that surpassed expectations.
"These two stocks hold the potential to initiate a minor market recovery," they noted.
The Nifty Bank index fell by 470.55 points or 0.95 percent to 48,808.15. The Nifty Midcap 100 index stood at 54,275.15, down by 208.65 points or 0.38 percent. Meanwhile, the Nifty Smallcap 100 index was at 17,625.10, down by 18.20 points or 0.10 percent.
Within the Sensex basket, Infosys, Axis Bank, TCS, HCL Tech, M&M, Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, and IndusInd Bank were among the top losers. Conversely, Reliance, Zomato, L&T, Sun Pharma, Adani Ports, ITC, and Tata Motors emerged as the top gainers.
The Dow Jones fell by 0.16 percent to close at 43,153.13, the S&P 500 decreased by 0.21 percent to 5,937.34, and the Nasdaq dropped by 0.89 percent to end at 19,338.29 in the previous trading session.
In Asian markets, Seoul, Bangkok, and Japan were trading lower, while China, Jakarta, and Hong Kong were in positive territory.
"The market correction has rendered large-cap valuations attractive. Currently, Nifty is trading at about 19 times the estimated FY 26 earnings. Therefore, long-term investors who can withstand the volatility from foreign institutional investors (FIIs) selling should consider purchasing quality large-caps during dips. A rebound in this segment is merely a matter of time," commented market analysts.
Meanwhile, FIIs sold shares worth Rs 4,341.95 crore on January 16, while domestic institutions purchased equities worth Rs 2,928.72 crore on the same day.
