Sensex Today: Nifty Falls Below 24,100 as Market Trends Mix
Indian stock market indices started the trading session on Thursday in positive territory, with Nifty 50 opening at 24,274.15 and Sensex at 80,281.64. The momentum did not last too long, though, as Infosys and Mahindra & Mahindra (M&M) were the major contributors to the downside, driving Nifty below the 24,100 mark.
Trading currently is 2,003.2 points below all-time highs of 26,277.35 at Nifty 50 on cautious investors’ sentiment triggered by international and domestic market cues.
Global Market Trends Add Pressure
The overnight performance of US markets has left a footprint on Indian equities during opening bell. Wall Street indices have finished in the red on Wednesday. S&P 500 and Dow Jones fell 0.3 percent while the Nasdaq Composite slid by 0.6 percent. Asian markets had been largely mixed during early trade. Indices moved in a relatively flat trajectory.
These global cues, along with domestic concerns, have set a cautious tone for investors, leading to profit booking in major stocks.
Stocks Dragging the Markets
Infosys and Mahindra & Mahindra were the key laggards that put significant pressure on Nifty 50. Investors are closely monitoring Infosys due to global IT demand trends, while M&M faces challenges in its automotive and farm equipment segments amidst volatile input costs.
Other notable movers include:
Godrej Properties: Trading muted with apprehensions over rising real estate prices.
Bank of India: Gaining marginally as it moves on from recent lows.
NBCC and Ashoka Buildcon: Both the stocks are in focus due to new project announcements.
Hero MotoCorp: Trading lower as sales growth is expected to be muted.
Vedanta: Under selling pressure as commodity market volatility continues.
Broad Market Focus
Midcap and smallcap stocks saw selective buying. Stocks like Waaree Renewable, Sonata Software, and KEC International were seen on the positive side, with sector-specific developments.
The pharmaceutical companies, such as Natco Pharma, drew investors’ attention as the stock showed resilience due to strong demand for niche drugs in export markets.
Sentiment Drivers
1. Global Uncertainty: The market has been under pressure due to geopolitical tensions and Federal Reserve policies, which have been a persistent concern.
- Domestic Earnings Reports: Investors are still awaiting clarity from corporate earnings about the health of key sectors.
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Rupee Performance: The Indian rupee is under pressure, which increases difficulties for export-driven sectors.
Sector Performance
IT Sector: The sector witnessed headwinds as Infosys and other key players corrected on global uncertainties in tech spending.
Real Estate: Stocks like Godrej Properties underperformed on the back of rising borrowing costs and weak demand.
Automobile: Drag on M&M’s highlighted woes in the space, but some of the two-wheeler companies have shown resilience.
Inside Story
Market experts argue that the correction at this point offers selective buying but warn against overexposure as uncertainties prevail. “Investors should focus on companies that have strong fundamentals and should not chase momentum,” said one of the leading market analysts.
Outlook for the Day
The volatility at the stock market level is likely to persist. Key levels on Nifty would be at the bottom 24,000 and top 24,300. The direction, going ahead, will hinge on global indices movements and developments from the corporate space as also sectoral updates.
Through trading, the eyes of traders would remain glued to Infosys, Reliance Industries, and ITC, as the trends may go in the way the three big stocks behave.
The Indian stock market opened in the green but quickly turned volatile with the impact of both global and domestic factors coming into play. With Nifty slipping below the 24,100 mark and Sensex under pressure, investors are advised to tread cautiously. Broader market trends suggest that this is the time to wait and watch and not look to exploit selective stock opportunities.
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