The domestic benchmark indices opened lower on Tuesday, with selling observed across several key sectors. The Nifty saw declines in IT, realty, auto, financial services, FMCG, media, and private banking stocks, leading to a mixed market trend.
At around 9:25 am, the Sensex was trading at 77,813.49, down by 434.64 points or 0.56%. Similarly, the Nifty dropped 108.90 points, or 0.46%, to stand at 23,536. Despite the declines in the indices, the market showed a mixed trend overall. On the National Stock Exchange (NSE), 1,096 stocks were in the green, while 1,040 stocks traded in the red.
Market experts highlighted that December has been weak for equity markets globally. The S&P 500 is down by 2.34%, while the Nifty has declined by 2.6%. Experts noted that the markets are entering the New Year with caution, citing high uncertainty and stretched valuations as key factors influencing investor sentiment.
Sectoral Trends And Indices Performance
Among the sectoral indices, Nifty Bank fell by 191.50 points, or 0.38%, settling at 50,761.25. The Nifty Midcap 100 index dropped by 244.95 points, or 0.43%, to 56,944.80, while the Nifty Smallcap 100 index saw a minor decline of 21 points, or 0.11%, standing at 18,618.95.
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On a more positive note, buying was seen in sectors such as PSU Bank, Pharma, Metal, Energy, Commodities, PSE, and Healthcare.
In the Sensex pack, Tech Mahindra, HCL Tech, TCS, Infosys, Zomato, and NTPC were among the top losers. Meanwhile, Tata Motors, ITC, Tata Steel, SBI, Kotak Mahindra Bank, and Nestle India emerged as the top gainers.
Globally, the Dow Jones dropped by 0.97%, closing at 42,573.73. The S&P 500 also fell by 1.07%, ending at 5,906.94, while the Nasdaq declined by 1.19%, closing at 19,486.79 in the previous trading session.
In Asia, China was trading in the red, while Hong Kong saw a positive trend, trading in the green.
FIIs And DIIs Impact On Market Sentiment
Experts pointed out that the high US bond yields and a strong dollar are likely to keep foreign institutional investors (FIIs) on the selling side, especially on every rise. Domestic institutional investors (DIIs) were not expected to buy in strong enough volumes to push the market significantly higher.
On December 30, FIIs sold equities worth Rs 1,893.16 crore, while DIIs bought equities worth Rs 2,173.86 crore.
As the year draws to a close, caution remains the dominant sentiment in the market.
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