The domestic benchmark indices opened flat on Wednesday, with selling observed in sectors such as auto, IT, PSU bank, financial services, FMCG, metal, realty, and media.
By 9:28 am, the Sensex stood at 78,014.77, down by 184.34 points, or 0.24%. Meanwhile, the Nifty was trading at 23,662.2, a drop of 45.70 points, or 0.19%.
On the National Stock Exchange (NSE), 749 stocks were in the green, while 826 stocks were in the red. The Nifty Bank index dropped by 117.25 points, or 0.23%, to 50,084.90. The Nifty Midcap 100 index declined by 463.95 points, or 0.82%, settling at 56,405.35. Additionally, the Nifty Smallcap 100 index fell by 105.35 points, or 0.56%, to 18,568.10.
US Macros Impacting Indian Markets
Market experts point out that strong US macroeconomic data continues to pressure emerging markets. The US 10-year bond yield surged to 4.67%, driven by better-than-expected job numbers and a thriving services sector. This suggests that the Federal Reserve may keep interest rates unchanged in January, further strengthening the dollar and pushing bond yields higher.
Experts anticipate that the Reserve Bank of India (RBI) might hold rates in February, contrary to market expectations of a rate cut. Consequently, foreign institutional investors (FIIs) are expected to continue selling, adding downward pressure on the Indian market.
Among Sensex stocks, Zomato, Tech Mahindra, Tata Motors, Infosys, IndusInd Bank, HCL Tech, and HDFC Bank were the biggest losers. On the other hand, Maruti, Sun Pharma, Nestle India, L&T, PowerGrid, ITC, M&M, Axis Bank, and Kotak Mahindra Bank emerged as the top gainers.
In global markets, the Dow Jones dropped by 0.42%, closing at 42,528.36. The S&P 500 declined by 1.11%, ending at 5,909, and the Nasdaq lost 1.89%, closing at 19,489.68 in the previous trading session.
In Asia, Jakarta and Seoul traded in the green, while Hong Kong, China, Bangkok, and Japan saw losses.
Foreign institutional investors (FIIs) sold equities worth Rs 1,491.46 crore on January 7, while domestic institutional investors (DIIs) bought equities worth Rs 1,615.28 crore on the same day.
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