Indian Stock Market Declines as Investors Exercise Caution in the New Year
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Mumbai, Jan 3 (NationPress) After an impressive beginning to the New Year, the Indian stock market's rising trend faced a setback on Friday, influenced by mixed global signals and substantial selling pressure in the IT, financial services, and pharmaceutical sectors.
The Sensex closed at 79,223.11, reflecting a decline of 720.60 points or 0.90 percent, while the Nifty finished at 24,004.75, down by 183.90 points or 0.76 percent.
The Nifty Bank index concluded at 50,988.80, a drop of 616.75 points or 1.20 percent. Meanwhile, the Nifty Midcap 100 index ended at 57,931.05, losing 177.15 points or 0.30 percent, and the Nifty Smallcap 100 index closed at 19,033.70, down by 46.65 points or 0.24 percent.
Market analysts noted that the Indian stock market encountered a significant decline, primarily due to losses in critical sectors such as IT, pharmaceuticals, healthcare, and banking.
“Despite earlier optimism surrounding potential earnings growth for the upcoming quarter, recent economic data has tempered expectations, leading to increased market volatility as investors maintain a cautious stance entering the New Year,” they remarked.
On the Bombay Stock Exchange (BSE), 2,115 stocks recorded gains, while 1,871 shares fell, with 117 shares remaining unchanged.
Sector-wise, there was buying interest in the PSU Bank, FMCG, Metal, Media, Energy, and Commodities sectors.
Within the Sensex constituents, Zomato, HDFC Bank, Tech Mahindra, TCS, ICICI Bank, Sun Pharma, HCL Tech, ITC, L&T, M&M, and Bharti Airtel were among the major losers. Conversely, Tata Motors, Titan, Nestle India, Hindustan Unilever, Maruti Suzuki, NTPC, IndusInd Bank, and Tata Steel emerged as the top gainers.
Foreign Institutional Investors (FIIs) acquired equities worth Rs 1,506.75 crore on January 2, while domestic institutional investors bought equities valued at Rs 22.14 crore on the same day.
According to Rupak De from LKP Securities, the Nifty could not surpass the 50 EMA on the daily chart, leading to a market correction.
“Nonetheless, market sentiment remains optimistic as the index closed above 24,000. The RSI indicates a bullish crossover. On the upside, the index may target 24,200–24,220, and a breakout above 24,220 could propel it to 24,500. However, a decisive drop below 24,000 might send the index down to 23,700,” he added.
