Why Did Sensex and Nifty Open Lower Today?

Mumbai, May 13 (NationPress) Indian equity markets commenced trading lower on Tuesday, with significant contributors to the decline being major players such as Infosys, Zomato, and Kotak Mahindra Bank, which dominated the list of losers in the BSE benchmark.

At approximately 9:25 am, the Sensex fell by 444 points or 0.54 percent to reach 81,985, while the Nifty dropped 105 points or 0.42 percent to settle at 24,817.

Following a negative start, analysts suggest that the Nifty could find support levels at 24,800, 24,700, and 24,500. Conversely, resistance is anticipated at 25,000, followed by 25,100 and 25,200.

Within the Sensex portfolio, the top gainers included Sun Pharma, IndusInd Bank, Tech Mahindra, Bajaj Finance, Maruti Suzuki, Titan, HUL, and Axis Bank. The major laggards were Infosys, Zomato, Tata Steel, HCL Tech, Power Grid, UltraTech Cement, Asian Paints, ITC, NTPC, and HDFC Bank.

From a sectoral perspective, losses were widespread in sectors including auto, IT, financial services, FMCG, metals, real estate, and media. In contrast, gains were observed in PSU banks, pharma, real estate, and PSE sectors.

There was modest buying activity in smallcap and midcap stocks, with the Nifty midcap 100 index rising 20 points to 55,437 and the Nifty smallcap 100 index increasing by 38 points to 16,805.

After a robust rise in previous sessions, the Indian benchmark indices are expected to stabilize, with sustained interest anticipated in mid-cap and small-cap stocks at lower valuations, according to Devarsh Vakil, Head of Prime Research at HDFC Securities.

Asian stock markets predominantly traded in positive territory, with notable gains in Tokyo, Bangkok, Seoul, and Shanghai, although Hong Kong faced a downturn.

The U.S. markets concluded positively as investors reacted favorably to a significant easing of tensions in the U.S.-China trade conflict. The Dow surged by 2.81 percent, while the technology index Nasdaq climbed by 4.35 percent during the last trading session.

On May 13, foreign institutional investors (FIIs) acquired equities worth Rs 1,246 crore, while domestic institutional investors (DIIs) also purchased shares valued at Rs 1,488 crore.

“In light of the current market conditions, traders are encouraged to maintain a disciplined trading strategy with robust risk management practices, concentrating on short-term trading prospects. Given the ongoing global uncertainties, it is advisable to steer clear of large overnight positions and implement strict risk controls,” advised Hardik Matalia, Derivative Analyst at Choice Broking.