Sensex and Nifty Decline Over 1% Due to Mixed Signals, Realty Shares Weigh Down
Click to start listening
Mumbai, Jan 13 (NationPress) The Indian stock market witnessed a decline of over 1% on Monday, driven by mixed signals from both global and domestic fronts, including strong US employment data that suggests a decrease in rate cuts for 2025.
Additional reasons for the market's downturn include rising crude oil prices, a weakening rupee, and significant foreign capital outflows, collectively leading to a loss of approximately Rs 12 lakh crore for investors.
Substantial selling pressure was observed in the realty, PSU banks, metal, automotive, and pharmaceutical sectors, with the realty sector closing down by more than 6%.
The Sensex concluded at 76,330.01, declining by 1,048.90 points, or 1.36%, while the Nifty settled at 23,085.95, down by 345.55 points or 1.47%.
Experts noted a significant sell-off in global markets that influenced a similar trend in the domestic market, prompted by strong US payroll data suggesting fewer rate cuts in 2025. This development has bolstered the dollar, increased bond yields, and rendered emerging markets less appealing.
Rupak De from LKP Securities remarked, "Bears continue to dominate as the Nifty breaches critical levels. The index has fallen below its previous swing low on the daily chart, indicating heightened bearish sentiment."
He further added, "Despite this, the Nifty managed to hold the 23,000 mark, which is crucial to monitor. If the Nifty remains above 23,000 in the coming days, it could indicate a potential recovery. Conversely, a significant drop below this level may lead to a deeper correction."
The Nifty Bank closed at 48,041.25, down by 692.90 points, or 1.42%. The Nifty Midcap 100 index finished at 52,390.4 after a decline of 2,195.35 points, or 4.02%, while the Nifty Smallcap 100 index closed at 16,922.10, falling by 723.45 points, or 4.10%.
Within the Sensex pack, notable losers included Zomato, Power Grid, Tata Steel, NTPC, Tata Motors, Tech Mahindra, M&M, Asian Paints, Sun Pharma, L&T, SBI, Bajaj Finance, HDFC Bank, and ICICI Bank. Conversely, Axis Bank, TCS, IndusInd Bank, and Hindustan Unilever Limited were among the top gainers.
Foreign Institutional Investors (FIIs) remained net sellers for the sixth consecutive day, divesting equities worth Rs 2,254.68 crore on January 10, while domestic institutions purchased equities amounting to Rs 3,961.92 crore on the same day.
