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The Indian stock market started the day on a subdued note, reacting to weak signals from the U.S. markets. Major banking stocks were hit hard, pulling down indices, though select sectors like technology showed resilience and gained traction in the face of a broader decline.
By mid-morning, the Sensex was down 142 points, or 0.17%, at 81,469, while the Nifty slipped by 36 points, or 0.12%, to 24,960. Banking stocks weighed heavily on the market, with the Nifty Bank index falling 204 points, or 0.40%, to 51,326. Despite this, some stocks like HCL Tech, Wipro, Tata Steel, Tech Mahindra, and Sun Pharma recorded gains, highlighting some sectoral strength.
A more detailed look at the market revealed a mixed sectoral performance. Tech stocks led the pack with positive movement, as IT giants like Infosys and TCS showed gains, while sectors like banking, auto, and FMCG faced losses. Notable decliners included ICICI Bank, HDFC Bank, Bajaj Finance, and Kotak Mahindra Bank.
However, not all was bleak—midcap and smallcap stocks provided a silver lining. The Nifty Midcap 100 index edged up 79 points, or 0.13%, to 58,995, while the Nifty Smallcap index increased by 39 points, or 0.18%, to 18,939. This points to a relative resilience among smaller firms, which have managed to maintain their momentum even in a challenging environment for larger companies.
Global and Sectoral Influences
The broader market sentiment reflected mixed global cues. While most Asian markets, including Tokyo, Seoul, and Hong Kong, were trading positively, the weak performance of U.S. markets on Thursday set the tone for a cautious opening in India. Experts suggest that the U.S. market’s dip, rather than Asian market gains, played a more significant role in driving the early declines in Indian equities.
Sectorally, IT, pharma, and metals fared well, while sectors like auto, financial services, FMCG, and energy underperformed. This uneven performance across sectors indicates that the market’s losses were not uniformly distributed.
But market experts predict heightened volatility due to external factors. Foreign institutional investors (FIIs) continue to sell, driven by more attractive valuations in other markets, particularly China. On Friday alone, FIIs offloaded Rs 4,926 crore in Indian equities though domestic institutional investors (DIIs) have stepped in to counterbalance the selling pressure, purchasing Rs 3,878 crore worth of equities.
