The Indian stock market opened with gains today, but Sensex and Nifty slipped into the red within the initial minutes due to heavy profit-booking in banking stocks. The strength of IT shares could not sustain the market, while FPI selling continued.
Stock Market: India's stock market had a b start on Wednesday, but the sentiment shifted just minutes after opening, and both key indices slipped into the red. While IT shares showed strength, profit-booking in public and private banking stocks increased pressure on the market. Investors will continue to keep an eye on the RBI's Monetary Policy Committee (MPC) meeting and global cues today.
Sensex and Nifty Slip After a Weak Start
The BSE Sensex started the day with a slight gain at 85,150 points. However, the gains did not last long, and the market immediately slipped under pressure. At 9:30 AM, the Sensex was trading down 197 points, or 0.23%, at 84,941 points.
The Nifty-50 opened almost flat at 26,004 points but soon fell below the crucial 26,000 mark. At 9:31 AM, the Nifty was trading down 57 points, or 0.22%, at 25,974.
IT Sector Holds the Market's Grip
The primary reason for market weakness was heavy profit-booking in public and private banking stocks. On the other hand, the IT sector showed strength, providing support to the market in the initial minutes. However, the decline in banking stocks was so significant that it dragged the market down.
Mixed Signals from Asian Markets
Asian markets mostly traded higher on Wednesday. The surge in tech stocks on Wall Street and the recovery in the crypto market provided strength to Asian markets.
Japan's Nikkei 225 rose 0.76%, while the Topix Index fell 0.31%. South Korea's Kospi was up 1.06%. Australia's S&P/ASX 200 also strengthened by 0.32%.
US stock futures remained stable, and on Tuesday, the Dow, S&P 500, and Nasdaq – all three indices closed in the green. Investors are now awaiting the US Global Composite PMI and Services PMI data.
Investors Cautious Ahead of RBI MPC Meeting
Investors remain cautious regarding the RBI's three-day Monetary Policy Committee (MPC) meeting, which begins today. The meeting will run from December 3 to December 5. A major decision on the repo rate is expected from this meeting, which will directly impact EMIs for home and personal loans.
Over the past three trading sessions, Nifty and Sensex have fallen by up to 0.7%. Although both indices reached a 14-month high last week, continuous selling by Foreign Portfolio Investors (FPIs) has pushed the market down.
On Tuesday, FPIs engaged in significant selling worth Rs 3642 crore, which also put pressure on the rupee, causing it to fall to an historic low of 90 rupees per dollar.
Several Major IPOs Opened in the Primary Market Today
Amidst market volatility, activity continues in the primary market. Several major IPOs are opening today, and many are entering their second and third days of subscription.
Mainline IPOs Opening Today:
- Vidya Wires IPO
- Equus IPO
- Meesho IPO
Opening in the SME Segment Today:
- Shree Kanha Stainless IPO
- Entering Day Two:
- Neochem Bio IPO
- Helojee Holidays IPO
Entering Day Three:
- Revalcare IPO
- Clear Secure Services IPO
- Speb Adhesives IPO
- Invicta Diagnostic IPO
- Astron Multigrain IPO
Allotment Today For:
- Purple Wave IPO
- Logiciel Solutions IPO
- Exato Technologies IPO
