Indian Stock Market Begins on a Weak Note, Nifty Dips Below 22,850

Synopsis

On February 17, 2023, the Indian stock market opened lower, with benchmark indices reflecting a bearish sentiment due to global cues and sector sell-offs. Key sectors like auto, IT, and PSU banks faced significant pressure amid investor concerns about upcoming US trade tariffs.

Key Takeaways

Market opened lower due to global cues.
Sectoral sell-off in auto, IT, and PSU banks.
Potential breakdown could lead to increased volatility.
FIIs continued selling, while DIIs were net buyers.
Technical indicators suggest further declines are possible.

Mumbai, Feb 17 (NationPress) The Indian benchmark indices commenced the trading day on a negative note on Monday, influenced by mixed signals from global markets. Selling pressure was particularly evident in the auto, IT, and PSU bank sectors during early trading sessions, with the impending reciprocal trade tariffs announced by the US government weighing heavily on investors' minds.

At approximately 9:34 am, the Sensex was down by 423.88 points or 0.56 percent, standing at 75,515.33, while the Nifty fell by 126.45 points or 0.55 percent to reach 22,802.80.

The Nifty Bank index recorded a drop of 177.75 points or 0.36 percent, settling at 48,921.70. Meanwhile, the Nifty Midcap 100 index was at 49,503.50, down by 150.65 points or 0.30 percent. The Nifty Smallcap 100 index, however, saw a modest increase of 23.55 points or 0.15 percent, reaching 15,430.75.

Market analysts noted that the current price movements are testing both the swing low and the lower boundary of the 'Falling Wedge' pattern, which suggests a bearish outlook.

“A breakdown could lead to a considerable sell-off, increasing volatility and pushing asset prices lower,” stated Sameet Chavan from Angel One.

Technically, a decisive breakdown below the 22,800-22,700 range (the lower band) could open the door for a potential decline to 22,500-22,400, which could represent a drop of nearly 15 percent from the all-time high, he warned.

Within the Sensex constituents, major losers included M&M, Tata Steel, Infosys, TCS, Nestle India, NTPC, ICICI Bank, and Kotak Mahindra Bank. Conversely, the top gainers were Bajaj FinServ, Sun Pharma, Asian Paints, Tata Motors, and IndusInd Bank.

In the previous trading session, the Dow Jones fell by 0.37 percent, closing at 44,546.08. The S&P 500 saw a slight dip of 0.01 percent to 6,114.63, while the Nasdaq gained 0.41 percent, ending at 20,026.77.

Looking at the Asian markets, Jakarta, Seoul, and Japan were trading positively, while Bangkok, China, and Hong Kong faced declines.

On the institutional front, foreign institutional investors (FIIs) continued their selling streak, offloading equities worth Rs 4,294.69 crore on February 14 for the eighth consecutive session. In contrast, domestic institutional investors (DIIs) remained net buyers, acquiring equities worth Rs 4,363.87 crore on the same day.