The Nifty 50 declined 47 points while the Sensex dropped 265 points at opening bell, reflecting consolidation amid lack of fresh triggers even as FIIs maintained buying momentum
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After a sudden surge in market indices over the last few days, selling pressure returned to the Indian stock markets on Thursday. Nifty and Sensex both opened in the red amid the absence of any fresh trigger, even as foreign investors continued to show positive interest in the markets.
As reported by news agency ANI, the Nifty 50 index opened at 25,906.70, declining by 47.15 points or 0.18 per cent, whereas the BSE Sensex opened at 83,968.43, down by 265.21 points or 0.31 per cent.
Chief Investment Strategist VK Vijayakumar, while speaking about the drop on Thursday, said, “Support to the market has to come from earnings growth, and there are sectors like automobiles, jewellery, hotels, segments of capital goods, telecom and financials that are doing well on the earnings front and have the potential to continue to do well. Even with occasional profit booking, the undertone of the market will remain resilient, mainly because there is a trend of FIIs turning buyers."
Vijayakumar further added, “The fact that FIIs were buyers in six of the last seven trading sessions indicates that at least the trend of sustained selling is over. In the near term the market is likely to consolidate around the current levels with an upward bias,” as cited by ANI.
Nifty Midcap declined by 0.45 per cent
Apart from the Nifty 50 and Sensex, the Nifty 100 also slipped 0.33 per cent, while the Nifty Midcap 100 declined 0.45 per cent. The Nifty Smallcap 100 also fell 0.69 per cent, indicating weakness across segments, reported ANI.
Among sectoral indices on the NSE, Nifty IT faced major pressure, falling more than 2 per cent. Nifty Auto declined 0.34 per cent, Nifty Metal lost 0.26 per cent, Nifty PSU Bank fell 0.54 per cent, and Nifty Realty dropped 0.66 per cent.
Gold prices also decline
Along with the market indices opening in red during the early hours of Thursday, gold prices also declined by 0.43 per cent to Rs 158,079 per 10 grams for 24-carat gold. Moreover, silver prices also fell by 0.77 per cent to Rs 261,000 per kilogram on Thursday.
FIIs invested Rs 943.8 crore
As per fund flow data for Wednesday, FIIs were net buyers at Rs 943.8 crore, while DIIs were net sellers at Rs 125.4 crore in the cash market, as per ANI.
Global markets
Along with the Indian stock market, other Asian markets on Thursday also experienced a downward trajectory. Hong Kong's Hang Seng index declined 0.92 per cent to 27,016. However, other major indices traded in the green. Japan's Nikkei 225 rose 0.14 per cent to 57,744, Singapore's Straits Times gained 0.61 per cent to 5,015, and South Korea's markets surged 2.70 per cent to 5,498. Taiwan's market remained closed for a holiday.
In the US markets on Wednesday, the S&P 500 closed almost flat at 6,941. The Nasdaq declined marginally by 0.11 per cent to 23,076 at closing, while the Dow Jones index ended on a flat note with a marginal fall of 0.13 per cent to 50,121.
(With inputs from ANI)
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