Sensex and Nifty Slip as IT and Banking Stocks Weigh Down Markets
Indian Markets Open Lower Amid IT and Banking Stock Declines
Indian blue-chip indices, Sensex and Nifty, opened slightly lower on Wednesday after four consecutive sessions of record highs, weighed down by IT stocks and banking stocks. The BSE Sensex was down 64 points, or 0.08%, at 84,850, while the Nifty50 fell 30 points, or 0.12%, to 25,910 around 9:17 am. The benchmark indices have hit record highs in every session since the U.S. Federal Reserve cut interest rates by 50 basis points last week.
- In the Sensex pack, HCL Tech, Asian Paints, Tech Mahindra, Bajaj Finance, Bajaj Finserv, Infosys, and SBI opened lower, while Power Grid, Tata Steel, JSW Steel, UltraTech Cement, and Titan posted early gains.
Sector Movements and Stock Highlights
On the sectoral front, Nifty Metal gained 1.2%, extending its rally for the second consecutive day following China's announcement of several measures to boost its slowing economy. Meanwhile, Nifty Financial Services, FMCG, IT, PSU Bank, Realty, and Healthcare indices opened in the red.
- Among individual stocks, Easy Trip Planners fell 7.4% in early trade amid reports that promoter Nishant Pitti sold up to 8.5% stake in the company through block deals.
- Delta Corp shares surged 10% after announcing the demerger of its real estate and hospitality businesses.
Experts View: The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday, and if the rally continues, it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations. In India, metal stocks rallied in response to the Chinese stimulus measures, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. If Nifty is to go past 26,000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment, Vijayakumar added.
Deepak Jasani, Head of Retail Research at HDFC Securities, stated that Nifty formed a spinning top-like pattern on September 24 after remaining in a 125 points range. Nifty could face resistance from 26,250 while 25,611-25,791 band could offer support.
Global Market Trends
Chinese stocks surged on Wednesday, lifting regional markets and helping extend a stimulus-fueled global rally. Mainland Chinese blue chips advanced 3.1%, following a 4.3% jump in the prior session. Hong Kong's Hang Seng climbed 2.2%, adding to Tuesday's 4.1% surge.
- FII/DII Tracker: As per provisional figures, FIIs sold shares worth net Rs 2,784.14 crore, and Domestic institutional investors bought shares worth net Rs 3,868.31 crore on September 24, 2024.
Crude Oil: Oil prices fell on Wednesday after rising in the previous session on fading excitement for the economic stimulus in China, the world's biggest crude importer. Brent crude futures fell 14 cents at $74.31 a barrel, while U.S. West Texas Intermediate crude lost 22 cents at $71.35 per barrel.
Rupee Movement: The Indian rupee rose 6 paise to 83.57 against the US dollar in early trade. The dollar index declined 0.21% to the 100.25 level.
(With inputs from agencies)
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.