Indian Stock Market Opens In Red Amid Sectoral Losses

The Indian stock market opened in the red on Monday, with selling pressures seen across multiple sectors, including auto, IT, PSU Bank, pharma, and metal stocks. As of 9:32 am, the Sensex was trading at 81,876.95, down by 256.17 points or 0.31%. Similarly, the Nifty was at 24,705.60, having dropped by 62.70 points or 0.25%.

Despite the overall downturn, the market displayed mixed trends. On the National Stock Exchange (NSE), 1,170 stocks were trading in the green, while 571 stocks were in the red, indicating some pockets of optimism amid the broader market sell-off.

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Akshay Chinchalkar of Axis Securities noted that Friday’s volatile session saw the Nifty decline early in the day. However, the day’s low occurred at the falling neckline of the bullish head-and-shoulders pattern, which was activated on December 3. The pattern’s upside target remains at 25,500, as long as the market stays above 23,873. Chinchalkar emphasized that the critical support now lies at the Friday low of 24,180.

Sector-Specific Performance

The Nifty Bank index was down by 168 points or 0.31%, reaching 53,415.80, while the Nifty Midcap 100 index saw a modest rise of 0.41%, reaching 59,234.85. The Nifty Smallcap 100 index performed slightly better, rising 0.56% to 19,515.40.

Market experts suggest that heightened volatility in the market is being driven by large positions in the Futures & Options (F&O) segments. The sharp 500-point move in the Nifty, from its day’s low to high, indicates massive short covering, further contributing to market fluctuations.

Among the top losers in the Sensex pack were NTPC, JSW Steel, M&M, Titan, Kotak Mahindra Bank, Infosys, TCS, Hindustan Unilever Limited, Axis Bank, and Tech Mahindra. In contrast, Tata Steel, UltraTech Cement, L&T, ITC, Tata Motors, IndusInd Bank, and HCL Tech emerged as the top gainers.

Global Market Trends

Asian markets were mostly in the red, with the exception of China. Stock markets in Hong Kong, Bangkok, Seoul, Jakarta, and Japan all saw declines during the session. In contrast, the US stock markets showed mixed results. The Nasdaq Composite ended 0.12% higher, while the Dow Jones Industrial Average closed 0.20% lower.

Foreign Institutional Investors (FIIs) bought equities worth Rs 2,335.32 crore on December 13, while Domestic Institutional Investors (DIIs) sold equities worth Rs 732.20 crore on the same day. This divergence in activity underscores the ongoing dynamic between foreign and domestic investors in the market.

In conclusion, while the Indian stock market faced downward pressure in early trading, mixed sectoral performances and significant market volatility suggest that investors will need to closely monitor the unfolding trends for potential opportunities and risks.