The Indian stock market began the week on a weaker note, opening lower on Monday due to selling pressure in the information technology (IT) sector.
By 9:29 AM, the Sensex had declined by 242 points (0.30%) to 81,220, while the Nifty slipped 63 points (0.26%) to trade at 24,773.
Banking stocks also saw weakness, with the Nifty Bank index dropping 0.28% to 56,384.
The IT and realty sectors underperformed the most, as the Nifty IT index lost 0.61% and the Nifty Realty index dropped sharply by 2.75%.
The previous trading session on Friday ended on a negative note, with the Nifty 50 closing below the immediate support level of 24,900, settling at 24,837.
Market weakness was attributed to global uncertainties and underwhelming earnings reports.
Mandar Bhojane from Choice Equity Broking Private Limited stated, “For any meaningful upside to resume, the index needs to decisively close above the 25,150 mark. A breakout above this level could pave the way for higher targets at 25,500 and 25,700 in the upcoming sessions. Until then, the broader outlook remains sideways to bearish.”
Meanwhile, the Nifty Midcap 100 index edged up by 0.26%, while the Smallcap 100 remained flat.
Among individual stocks, Paytm, Cyient, RBL Bank, and Indraprastha Gas (IGL) were early gainers.
On the flip side, Indian Energy Exchange (IEX) plunged 6.84%, and Kotak Mahindra Bank fell 6.18%. Lodha Developers, SBI Cards, and Central Depository Services (CDSL) also saw early declines.
Expert View: IT Sector Under Pressure
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The sharp cut in the IT index has been dragging the market down, and there is no respite in view of the 2 per cent cut in its global workforce announced by TCS. However, midcap IT names hold promise in view of their strong growth prospects.”
He further added, “Investors have to be cautious and stock-specific in this weak phase of the market. There is safety in banks like ICICI Bank and HDFC Bank which have come out with the best results in the segment with prospects of improvement going forward.”
In broader Asian markets, Japan’s Nikkei 225 slipped 0.74%, and South Korea’s Kospi edged down by 0.11%. However, markets in Shanghai and Hong Kong traded in the green.
Overnight performance in the US was positive, with the Nasdaq Composite gaining 0.24%, the Dow Jones climbing 0.47%, and the S&P 500 advancing 0.40%.
On the institutional front, foreign investors remained net sellers throughout the previous week, offloading shares worth ₹30,508 crore so far in July.
In contrast, domestic institutional investors continued their buying streak, purchasing stocks worth ₹39,825 crore during the same period.
Also Read: Adani Energy Solutions Posts 71% Profit Surge In Q1; Smart Metering And Transmission Lead Growth
To read more such news, download Bharat Express news apps
