Indian Stock Market Opens Lower as Auto and IT Shares Weigh Down
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Mumbai, Dec 16 (NationPress) The Indian stock market commenced the day on a negative note this Monday as there was notable selling pressure in Nifty's auto, IT, PSU Bank, pharma, and metal sectors.
By around 9:32 am, the Sensex was recorded at 81,876.95, reflecting a decrease of 256.17 points or 0.31 percent, while the Nifty stood at 24,705.60, down by 62.70 points or 0.25 percent.
The overall market trend retained a positive outlook. On the National Stock Exchange (NSE), 1,170 stocks were trading positively, whereas 571 stocks faced declines.
According to Akshay Chinchalkar of Axis Securities, Friday's trading session was highly volatile, witnessing a drop in Nifty during the early hours; however, the day's lowest point coincided with the falling neckline of the bullish head-and-shoulders pattern that was activated on December 3, which has a projected target of 25,500.
This target remains achievable as long as the market stays above 23,873. However, the more crucial support level is now the Friday low of 24,180, he noted.
The Nifty Bank index fell by 168 points or 0.31 percent, reaching 53,415.80. The Nifty Midcap 100 index rose to 59,234.85, gaining 243.30 points or 0.41 percent, while the Nifty Smallcap 100 index was at 19,515.40, increasing by 108.10 points or 0.56 percent.
Market analysts suggest that substantial positions in the F&O segments are driving the current market volatility. The 500-point fluctuation in Nifty from its lowest to highest point indicates significant short covering activity.
Among the Sensex constituents, NTPC, JSW Steel, M&M, Titan, Kotak Mahindra Bank, Infosys, TCS, Hindustan Unilever Limited, Axis Bank, and Tech Mahindra were the leading losers. Conversely, Tata Steel, UltraTech Cement, L&T, ITC, Tata Motors, IndusInd Bank, and HCL Tech emerged as the top gainers.
In the Asian markets, all except China saw declines, with Hong Kong, Bangkok, Seoul, Jakarta, and Japan trading in the red.
In the U.S. stock markets, the Nasdaq Composite closed 0.12 percent higher, whereas the Dow Jones Industrial Average fell by 0.20 percent compared to the previous trading day.
On December 13, foreign institutional investors (FIIs) purchased equities worth Rs 2,335.32 crore, while domestic institutional investors sold equities amounting to Rs 732.20 crore during the same period.
