Indian Stock Market Closes Down Amid Global Optimism
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Synopsis
On January 24, the Indian stock market faced volatility, ending lower as selling pressures outweighed initial gains. Key stocks dragged indices down, and concerns over corporate earnings overshadowed global optimism. Foreign institutional investors continued to sell, impacting large-cap stocks.
Key Takeaways
- Markets ended on a weak note due to selling pressure.
- Key indices like BSE Sensex and Nifty 50 declined by 0.49%.
- FIIs have been net sellers for 15 consecutive days.
- Bank of Japan raised interest rates impacting sentiment.
- Concerns regarding corporate earnings overshadowed global positivity.
Mumbai, Jan 24 (NationPress) The Indian stock market experienced fluctuations on Friday as selling pressure at elevated levels impacted the benchmark indices.
By the end of the trading session, the BSE Sensex settled at 76,190.46, down 329.92 points or 0.49 percent, while the Nifty 50 fell 113.15 points or 0.49 percent to conclude at 23,092.2.
The exchanges opened positively with the Nifty gaining 0.31 percent to 23,277, and the 30-stock Sensex rising by 0.31 percent to 76,765. During the initial trades, seven out of twelve sectors on the NSE showed gains.
Both indices reached intraday peaks of 76,985.95 and 23,347.30, respectively, before losing steam.
Significant stocks such as M&M, Zomato, Tata Motors, IndusInd Bank, Reliance Industries, Bajaj Finserv, Sun Pharma, and L&T contributed to the decline of the Sensex during the session.
Top decliners on the Nifty included Dr Reddy, Trent, Mahindra & Mahindra, among others.
In the broader market, the trend was bearish. The Nifty SmallCap index dropped 1.7 percent, while the Nifty MidCap index fell 1 percent. Among sectors, Nifty Pharma was the worst performer, declining by over 1.5 percent.
Indian equities concluded a tumultuous session on a weak note as global optimism did not uplift domestic markets.
“The market's weakness is linked to concerns regarding a potential slowdown in corporate earnings, overshadowing optimism regarding lower US interest rates and stable oil prices,” stated Vikram Kasat, Head-Advisory, PL Capital-Prabhudas Lilladher.
Foreign Institutional Investors (FIIs) continued to sell shares, putting pressure on large caps, especially in the banking sector.
On January 23, FIIs sold equities worth Rs 5,462.52 crore and have been net sellers for the 15th consecutive day, while domestic institutional investors purchased shares worth Rs 3,712 crore on the same day.
Additionally, global developments impacted market sentiment. The Bank of Japan increased its interest rates by 25 basis points to 0.5 percent, marking its highest policy rate since 2008.
