Why Did the Stock Market Open Lower Today?

Synopsis
Key Takeaways
- Indian stock market faced selling pressure today.
- Auto stocks led the losses.
- India-UK FTA could boost trade.
- Foreign institutional investors were net sellers.
- Mixed trends observed in Asian markets.
Mumbai, July 25 (NationPress) The Indian stock market experienced selling pressure in the early hours of trading on Friday, influenced by mixed global cues.
At 9:23 am, the Sensex dropped by 290 points or 0.35 percent, settling at 81,894, while the Nifty fell by 110 points or 0.44 percent, reaching 24,943.
Leading the losses were auto stocks, which recorded a 0.70 percent decline. FMCG and metal stocks followed as other significant losers. The Nifty Bank index decreased by 0.14 percent, standing at 56,983 points.
Overall, broad cap indices experienced greater declines than the benchmark indices, with the BSE smallcap index falling by 0.68 percent and the BSE midcap index down by 0.45 percent.
Among sectoral indices, all sectors remained flat except for auto, media, metal, FMCG, oil, and gas.
In early trading, the top gainers included SBI Life Insurance, Dr. Reddy’s Laboratories, Bharat Electronics, NTPC, SBI, and Apollo Hospitals. Conversely, major losers were Bajaj Finance, Bajaj Finserv, Axis Bank, Jio Financial, and TCS Titan.
Market analysts noted that the India-UK FTA could significantly enhance trade between the two nations, a development likely to be viewed positively by investors.
They commended the timing of this FTA amidst ongoing tariff conflicts, expressing hope that it could improve India's prospects for a fair trade agreement with the US.
Sectors poised to gain from the FTA, including textiles, leather, food processing, automobiles, pharmaceuticals, and gems and jewellery, are now on the market's radar.
In the Asian markets, Hong Kong's Hang Seng Index fell by 0.99 percent, while South Korea's KOSPI Index rose by 0.46 percent. Japan's Nikkei 225 Index also saw a decline of 0.61 percent, and China's market was similarly down.
In the US markets, the Dow Jones closed in the red, while both the NASDAQ and the S&P 500 finished in the green.
On July 24, foreign institutional investors (FIIs) were net sellers for the fifth consecutive day, offloading equities worth Rs 2,134 crore. In contrast, domestic institutional investors (DIIs) continued strong buying for the twelfth day, purchasing equities worth Rs 2,617 crore.
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