Indian Markets Decline Over 1% as Realty Shares Weigh Down Amidst Mixed Signals
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Mumbai, Jan 13 (NationPress) The Indian stock market experienced a drop of more than 1% on Monday, influenced by a blend of global and domestic signals, particularly the strong US employment statistics suggesting fewer rate cuts in 2025.
Additional factors contributing to the market's downturn included escalating crude oil prices, a weakening rupee, and significant foreign capital outflows, which collectively resulted in a loss of approximately Rs 12 lakh crore for investors.
Notable sell-offs were observed in the realty, PSU banks, metal, auto, and pharma sectors. The realty sector closed in the negative, with a decline of over 6%.
The Sensex concluded at 76,330.01, down by 1,048.90 points, or 1.36%, while the Nifty settled at 23,085.95, falling by 345.55 points, or 1.47%.
Experts noted that global markets faced a significant sell-off, leading to a parallel reaction in domestic markets due to the strong US payroll data indicating fewer rate cuts in 2025. This has bolstered the dollar, increased bond yields, and rendered emerging markets less appealing.
Rupak De from LKP Securities stated, "Bears are in control as the Nifty continues to cross critical levels. The index fell below its previous swing low on the daily chart, signaling escalating bearish sentiment."
"Nevertheless, it managed to maintain the 23,000 mark, which is a crucial level to monitor. If the Nifty remains above 23,000 in the coming days, it could indicate a possible recovery. Conversely, a significant decline below this level might initiate a deeper correction," he added.
The Nifty Bank closed at 48,041.25, down by 692.90 points, or 1.42%. The Nifty Midcap 100 index finished at 52,390.4 after a drop of 2,195.35 points, or 4.02%, while the Nifty Smallcap 100 index ended at 16,922.10 after a decrease of 723.45 points, or 4.10%.
Within the Sensex ensemble, Zomato, Power Grid, Tata Steel, NTPC, Tata Motors, Tech Mahindra, M&M, Asian Paints, Sun Pharma, L&T, SBI, Bajaj Finance, HDFC Bank, and ICICI Bank were among the principal losers. In contrast, Axis Bank, TCS, IndusInd Bank, and Hindustan Unilever Limited were noted as the major gainers.
Foreign Institutional Investors (FIIs) continued as net sellers for the sixth consecutive day, offloading equities worth Rs 2,254.68 crore on January 10, while domestic institutions purchased equities valued at Rs 3,961.92 crore on the same date.
