Indian Stock Market Starts Lower, Nifty Below 24,200
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Mumbai, Dec 2 (NationPress) The Indian stock market commenced trading on a negative note on Monday, as there was a noticeable sell-off in the PSU bank and financial services sectors during the early hours.
At approximately 09:42 am, the Sensex stood at 79,661.99, down by 140.80 points or 0.18 percent, while the Nifty was at 24,118.85, decreasing by 12.25 points or 0.05 percent.
The overall market sentiment remained optimistic. On the National Stock Exchange (NSE), 1,254 stocks were in the green, while 1,076 stocks were in the red.
Market analysts suggested that the Q2 GDP figures might influence market performance, although a significant impact is not anticipated.
Should there be a sharp market correction, it could represent a buying opportunity, as domestic institutional investors (DIIs) are expected to continue purchasing during dips. Sectors like pharma, telecom, and digital companies, which are less affected by the economic slowdown, are recommended for buying on dips, they noted.
Regarding the current economic slowdown, the RBI might consider a CRR cut on December 6.
"With the CPI inflation standing at 6.2 percent, the MPC is unlikely to reduce rates. A CRR cut would benefit banks, making banking stocks likely to remain robust," experts stated.
The Nifty Bank index fell by 177.45 points or 0.34 percent, reaching 51,878.15. Meanwhile, the Nifty Midcap 100 index rose by 178.90 points or 0.32 percent, trading at 56,571.55. The Nifty Smallcap 100 index was at 18,731.80, up by 80.85 points or 0.43 percent.
Commenting on the daily Nifty trends and the market's short-term outlook, Akshay Chinchalkar, Head of Research at Axis Securities, remarked, "The rebound of the Nifty on Friday created a bullish belt-hold pattern, as the losses from the previous day were largely recovered—this pattern occurs when a bullish day follows a long bearish day with the opening matching the lows of the prior day."
This makes Thursday's lows at 23,873 crucial for both bulls and bears, with resistance firmly positioned at 24,360, followed by the 24,540 level," he added.
Within the Sensex pack, the major losers included Indusind Bank, Bajaj Finance, Reliance, L&T, HDFC Bank, Hindustan Unilever, NTPC, TCS, Infosys, and Asian Paints. In contrast, the top gainers were Maruti, Sun Pharma, Adani Ports, AltaTech Cement, Tata Motors, Tech Mahindra, M&M, and JSW Steel.
Looking at the broader Asian markets, those in Seoul and Bangkok were trading in the red, while markets in China, Hong Kong, Japan, and Jakarta reported gains. The US stock markets had a positive close in the previous trading session.
On November 29, foreign institutional investors (FIIs) sold equities worth Rs 4,383 crore, whereas domestic institutional investors purchased equities valued at Rs 5,723 crore on the same day.
