Indian Markets Open Lower, Enter New Year with Caution
Domestic benchmark indices opened on a weaker note on Tuesday, with significant selling pressure seen in IT, realty, auto, financial services, FMCG, media, and private banking sectors on the Nifty.
At 9:25 am, the Sensex was down 434.64 points or 0.56%, trading at 77,813.49, while the Nifty dropped 108.90 points or 0.46% to 23,536. Market sentiment remained mixed, with 1,096 stocks trading in green and 1,040 in red on the National Stock Exchange (NSE).
Market experts attributed the decline to global trends, noting, "December has been weak for equity markets worldwide. The S&P 500 is down by 2.34%, and the Nifty has declined 2.6%." They further highlighted the cautious approach as markets prepare for the New Year amid heightened uncertainty and stretched valuations.
Sectorally, gains were observed in PSU Banks, Pharma, Metals, Energy, Commodities, PSE, and Healthcare. However, Nifty Bank fell 191.50 points or 0.38% to 50,761.25, while the Nifty Midcap 100 and Smallcap 100 indices declined by 0.43% and 0.11%, respectively.
Top losers in the Sensex pack included Tech Mahindra, HCL Tech, TCS, Infosys, Zomato, and NTPC. Meanwhile, Tata Motors, ITC, Tata Steel, SBI, Kotak Mahindra Bank, and Nestle India emerged as the top gainers.
Internationally, the Dow Jones dropped 0.97% to close at 42,573.73, while the S&P 500 and Nasdaq fell by 1.07% and 1.19%, respectively. In Asia, China’s markets were trading in red, while Hong Kong traded in green.
Experts noted that high U.S. bond yields and a strong dollar are likely to sustain foreign institutional investor (FII) selling on market upswings. On December 30, FIIs sold equities worth ₹1,893.16 crore, while domestic institutional investors (DIIs) bought equities worth ₹2,173.86 crore.
The market is expected to tread cautiously as it transitions into the New Year, balancing global pressures and domestic factors.
