Indian markets opened weak today, pressured by global market sluggishness and a decline in US stocks. In early trading, the Sensex fell by 500 points, while the Nifty slipped below 25,400. There was also a selling mood across the broader market and several sectors.
Stock Market Today: Indian stock markets began the final trading day of the week on a weak note. In early trading, the Sensex opened at 83,150.15, below its previous closing level, and soon dropped by about 500 points. The Nifty also opened at 25,433.80 before slipping below 25,400. The weakness in global markets and the decline in the US market directly impacted the domestic market's movement.
Why Were Early Signals Weak?
In the morning, GIFT Nifty Futures were trading down 102 points at 25,525. This indicated a weak start for the market. Investor caution also stems from ongoing pressure in global stock markets and persistent concerns over the expensive valuations of technology and AI companies.
Pressure on Broader Market
Along with major market indices, small and midcap shares also witnessed declines. The Nifty Smallcap 100 fell by approximately 0.75%, and the Nifty Midcap 100 dropped by about 0.41%. The Nifty 500, Nifty 200, and Nifty 100 were also down. Meanwhile, India VIX registered a slight gain, indicating mild volatility in the market.
Sectoral Index Performance
At the sectoral level, the Nifty Consumer Durables and Nifty Metal indices showed the most weakness. However, the Nifty Pharma and Nifty Media indices saw slight gains. Sectors like IT, FMCG, Financial Services, and Auto remained under pressure today, limiting market recovery.
Top Gainers and Losers
In today's trading, Sun Pharma emerged as the best stock, recording a gain of over 1%. On the other hand, Bharti Airtel was under the most pressure, declining by over 3%. Additionally, shares of NTPC, HUL, HCL Tech, and TCS also performed weakly.
What Will Determine Market Direction?
Today, the market's movement will be significantly influenced by companies' second-quarter (Q2) results and IPO market activities. Internationally, China's trade figures and US employment data will also impact investor strategies. Investors are also keeping an eye on the latest foreign exchange reserve data in India.
Declining Trend in Asian Markets
Asia-Pacific markets also opened weak today. Japan's Nikkei 225, South Korea's Kospi, and Australia's S&P/ASX 200 all remained under pressure. This decline followed the weakness observed in US markets. Investor concerns are growing over high valuations in the AI sector.
Unease in US Markets
On Thursday, US markets also closed weak. The S&P 500, Nasdaq, and Dow Jones all three indices were down. Investors are currently moving towards safer investments and avoiding risk-taking, which has put pressure on the market.
FII and DII Activity
In the previous trading session, foreign institutional investors (FIIs) engaged in significant selling, while domestic institutional investors (DIIs) continued buying, providing some support to the market. This halted a sharp decline but did not entirely alleviate the pressure.
Today's Buzz in the IPO Market
On the main board, Pine Labs' IPO is opening today. Shares of Studds Accessories will be listed for the first time today. Meanwhile, today is the last day to apply for the Groww IPO. Several new IPOs have also opened in the SME segment, providing investors with new investment options.
Q2 Results Expected Today
Today, major companies like Tata Elxsi, Bajaj Finance, ICICI Prudential Life Insurance, LT Technology Services, Zensar Technologies, Happiest Minds, and Syngene International will release their second-quarter results.
