Indian Markets Trade Flat As IT Stocks Weigh On Sentiment

Indian stock markets witnessed subdued trading activity on Thursday morning as investors reacted to mixed cues from overseas markets and evaluated the potential impact of future US monetary policy decisions.

In early trade, the BSE Sensex fell 59 points to 77,095.99, while the NSE Nifty slipped 8.75 points to 24,076.95, reflecting a cautious market mood.

Selling pressure in information technology stocks affected overall market performance, with the Nifty IT index emerging as the worst-performing sector during the session.

Select sectors registered gains. Consumer durables and FMCG stocks attracted buying interest, while metal and chemical shares also traded in positive territory.

Infosys, HCLTech, Tata Consultancy Services, Tech Mahindra, Wipro, Bajaj Finance, and Bajaj Finserv featured among the major decliners on the Nifty index.

Market participants continued to track developments following the US Federal Reserve’s latest policy announcement.

Although the central bank left interest rates unchanged, it signalled that inflationary pressures could necessitate further rate increases later in the year.

Despite these indications, analysts believe Indian equities remain well-positioned and are unlikely to experience major disruptions solely because of the Fed’s stance.

Experts highlighted declining crude oil prices and currency stability as positive factors for domestic markets.

Brent crude remained close to $78 per barrel, while the rupee traded steadily against the US dollar.

Experts also observed a slowdown in foreign institutional investor selling, with overseas investors returning as net buyers in recent sessions, albeit in limited volumes.

Trading across Asian markets remained uneven. Japan’s Nikkei and South Korea’s KOSPI advanced strongly, whereas Hong Kong’s Hang Seng, China’s Shanghai Composite, and Indonesia’s Jakarta Composite moved lower.

US markets ended the previous session on a weaker note, with losses in both the S&P 500 and Nasdaq contributing to cautious sentiment among investors worldwide.