Stay tuned for key updates from the RBI Monetary Policy Meeting and market trends
The Indian stock market started the day on a cautious note, with benchmark indices BSE Sensex and Nifty 50 opening with slight gains. However, by mid-morning, both indices slipped deeper into negative territory, reflecting market uncertainty.
Key Indices Performance
As of 11 AM:
BSE Sensex: Down 399.85 points (-0.49%) at 80,556.48.
Nifty 50: Down 133.05 points (-0.54%) at 24,334.40.
Despite early optimism, the decline in the indices highlighted profit-booking by investors and subdued sentiment in certain sectors.
Top Gainers and Losers
BSE Sensex
Top Gainers:
Infosys: Up 1.08%
UltraTech Cement
TCS
Tech Mahindra
Reliance Industries
Top Losers:
NTPC: Down 0.72%
JSW Steel
HDFC Bank
Maruti Suzuki India
Power Grid Corporation
Nifty 50
Top Gainers:
Apollo Hospital Enterprises: Up 1.22%
Infosys
UltraTech Cement
Tech Mahindra
Bharti Airtel
Top Losers:
NTPC: Down 0.75%
SBI Life
JSW Steel
HDFC Bank
Bajaj Auto
Sectoral Highlights
Gainers:
IT Index: Up 0.74%, leading sectoral gains due to strong performances from major IT companies.
Consumer Durables and FMCG: Marginal gains reflecting stable consumer demand.
Healthcare and OMCs: Showed resilience amidst market volatility.
Losers:
Media Index: Down 0.34%, leading sectoral declines.
Pharma and Metal Indices: Marginal losses impacted by global trends and subdued demand.
Broader Market Overview
The broader market outperformed the benchmark indices:
Nifty Smallcap 100: Up 0.44%
Nifty Midcap 100: Up 0.36%
India’s volatility index, India VIX, was up by 1.07%, indicating heightened market fluctuations.
Foreign Institutional Activity
Foreign institutional investors (FIIs) remained net buyers for the second consecutive day, purchasing Indian equities worth Rs 1,797.60 crore on Wednesday. Meanwhile, domestic institutional investors (DIIs) were net sellers, offloading shares worth Rs 900.62 crore.
The ongoing strength in the U.S. markets added to the cautious optimism among FIIs. However, investors awaited key updates from the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which concludes on Friday.
Wednesday Recap
On Wednesday, the BSE Sensex and Nifty 50 closed in the green for the fourth consecutive session:
Sensex: Gained 110.58 points (+0.14%) to close at 80,956.33.
Nifty 50: Rose by 10.30 points (+0.04%) to settle at 24,467.45.
The broader markets outshined the benchmarks, with the Nifty Midcap 100 gaining 1.05% and the Nifty Smallcap 100 up by 0.89%.
Sectoral Highlights:
Best Performers: Banking shares, led by the Nifty PSU Bank Index, which surged by 2.25%.
Worst Performers: Metal, Pharma, and FMCG sectors.
Global Market Trends
Global equity markets showed mixed performance amid geopolitical and economic developments:
U.S. Markets:
S&P 500: Up 0.6% to 6,086 (record high).
Nasdaq Composite: Up 1.3% to 19,735 (record high).
Dow Jones Industrial Average: Gained 0.7% to 45,014.
The rally was driven by tech stocks and dovish comments from Federal Reserve Chair Jerome Powell, indicating a cautious approach to interest rate adjustments.
European Markets:
European stocks gained 0.4%, supported by easing U.S. Treasury yields and optimism around interest rate stability.
Asian Markets:
Asian equities exhibited mixed performance. While most markets rose, South Korea lagged behind. MSCI’s Asia-Pacific index outside Japan fell by 0.15%.
Key Global Developments
Federal Reserve Policy:
Fed Chair Jerome Powell’s statement about a cautious approach to interest rate policy bolstered investor confidence. The yield on the 10-year U.S. Treasury fell to 4.188%.
Ongoing Political Uncertainty in Europe:
French lawmakers voted to dissolve the coalition government, heightening concerns about economic stability in the eurozone.
Oil Prices:
Oil prices dropped as traders awaited the OPEC+ decision on production levels:
U.S. Crude: Fell 1.62% to $68.81 per barrel.
Brent Crude: Down 1.48% to $72.53 per barrel.
Cryptocurrency Markets:
Bitcoin continued its rally, trading at $98,892 (+3%), while Ethereum surged by 7.4% to $3,881. Optimism around the incoming U.S. administration’s crypto-friendly policies fueled the uptrend.
Sector Spotlight: IT
The IT sector emerged as a bright spot in Thursday’s trading session:
Major IT stocks like Infosys, TCS, and Tech Mahindra showed resilience, supported by strong global demand and robust earnings expectations.
Positive sentiment in global tech stocks further strengthened the sector’s performance.
Investor Sentiment and Outlook
Domestic Factors:
Market participants remain cautious ahead of the RBI’s monetary policy announcement. The committee’s stance on interest rates and inflation will likely influence near-term market trends.
Global Factors:Global cues, particularly from the U.S. Federal Reserve, continue to impact sentiment. Lower treasury yields and dovish remarks from policymakers offer some relief to equity markets.
Broader Trends:
Passive Funds: Assets under management (AUM) for passive funds tracking the Nifty Next 50 have doubled over the past year, reflecting growing investor interest in diversified portfolios.
Mutual Funds: Online platforms are reshaping the mutual fund landscape, with direct plans gaining popularity.
The Indian stock market exhibited a mixed performance on Thursday, with benchmark indices slipping into negative territory while broader markets showed resilience. Global and domestic factors, including the RBI’s policy decisions and U.S. economic trends, are expected to shape market movements in the coming sessions. Investors are advised to stay vigilant and align strategies with evolving market conditions
