The domestic stock market once again started trading on a weak note on Tuesday morning. As soon as the market opened, the BSE Sensex fell by nearly 130 points, while the NSE Nifty also came into the red zone. Investors are keeping an eye on the market's movement, which appears to be under pressure from global cues.
At 9:19 am, the BSE Sensex was trading at 80760.93, down by 130.09 points. Meanwhile, the NSE Nifty was trading around 24,661, down by 19.55 points. The market mood appeared weak in the initial hour, and selling was observed in most sectors.
Number of Stocks Advancing and Declining
Within minutes of the market opening, 1061 stocks were seen gaining, while 1080 stocks recorded a decline. In addition, 146 stocks remained unchanged. These figures indicate that there is an environment of volatility in the market, and investors are clearly showing caution.
Which Stocks Showed Strength?
In this weak environment, some selected stocks made gains. In the Nifty 50, ONGC, JSW Steel, Maruti Suzuki, HCL Tech, and Jio Financial Services stocks saw initial gains.
- ONGC was influenced by a slight strengthening of crude oil prices.
- JSW Steel and other metal stocks received relief from global demand.
- Maruti Suzuki maintained buyer interest.
- HCL Tech IT remained b due to a slight recovery in IT stocks.
- Jio Financial maintained a slight gain.
Which Shares Were at a Loss?
On the other hand, shares of several major companies registered a decline. These include Bharat Electronics, Shriram Finance, Infosys, Tata Steel, and ICICI Bank.
- Bharat Electronics weakened due to profit booking.
- Shriram Finance faced pressure after recent gains.
- Infosys and other IT stocks saw renewed selling.
- Tata Steel and ICICI Bank were affected by weak investment sentiment.
Heavy Pressure on IT and Banking Sectors
In today's trading session, there was particular pressure on the IT and banking sectors. Selling was seen in large-cap stocks like Infosys, HDFC Bank, and Kotak Bank. Continuous outflows from foreign investors and the strengthening of the dollar have affected banking stocks.
Mixed Trend in Midcap and Smallcap
Midcap and smallcap stocks saw slight volatility. However, the selling pressure in these was slightly less compared to large-cap stocks. Investors' inclination seems limited to selected sectors for the time being.
Impact of Global Cues Continues
The US markets saw a mixed trend in the past trading day. There was also a slight decline in Asian markets. There was a weak environment in the markets of China and Japan, which also affected the domestic market. In addition, concerns about interest rates and inflation data in the US have also affected investor sentiment.
Selling by Foreign Investors Remains a Concern
For the past few days, continuous selling has been done by FIIs (Foreign Institutional Investors). This has emerged as a negative signal for the domestic market. On Monday as well, selling of more than ₹700 crore was recorded from FIIs, while domestic institutional investors (DIIs) did some buying.
Focus on Oil Prices and Dollar Movement
Crude oil prices have once again reached close to $84 per barrel, which may affect the economy of an oil-importing country like India. Also, the rupee has weakened against the dollar to around 83.60, which may make imports expensive and reduce returns for foreign investors.
Volatility Persists in the Market
The market has seen a lot of volatility in the past few days. Sometimes the Sensex falls by up to 1000 points, and sometimes it shows a slight recovery. But the trend is still weak. Investors are now watching the quarterly results of companies, global cues, and the trend of foreign investment.
Sectoral Performance
- Auto Sector saw some strength due to Maruti and Tata Motors.
- Metal Sector was supported by JSW Steel and Hindalco.
- IT Sector saw weakness again, with Infosys and TCS in the red.
- Financial Sector was pressured by stocks like Shriram Finance, ICICI Bank.
Caution Seen Among Investors
Due to the volatility in the market and uncertainty at the global level, investors' attitude remains cautious for the time being. Traders are seen booking profits even on small gains, due to which the rise in stocks is not lasting.
