Stock market opens on a downturn amid global uncertainties

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Mumbai (Maharashtra) [India], January 19 (ANI): The stock market opened on a negative note on Thursday, experiencing a continuous decline in early trading hours.

The benchmark Sensex was down by 757.36 points, settling at 70,751.77, while the Nifty faced a decline of 279.80 points, reaching 21,292.15.

The market dynamics indicated a challenging start, with a notable number of companies registering declines. In the Nifty index, only five companies showed advances, while a significant 45 companies faced declines.

Among the gainers were Axis Bank, Sun Pharma, Kotak Bank, Bharti Airtel, and ICICI Bank. Conversely, LTIMindtree, Power Grid, Divi’s Lab, Asian Paints, and ONGC were among the top losers during the opening session on Thursday.

The negative trend in the Indian stock market was influenced by global uncertainties, with Wall Street mirroring the downturn.

Positive economic indicators in the United States, such as a 0.6 per cent rise in retail sales and a 5.6 per cent annual increase, did not evoke a positive response from the markets. This robust economic data challenged expectations of a more dovish Federal Reserve.

Varun Aggarwal, founder and managing director, Profit Idea, said, “On the previous trading day, the Nifty experienced a significant single-day fall of 2.09 per cent, marking the most substantial percentage drop in the last 18 months. From a technical standpoint, NIFTY faced intraday support at 21407 and hurdles at 21807”.

Multiple negative catalysts contributed to the cautious sentiment in the markets. These included HDFC Bank ADR’s 6.5 per cent decline, uncertainty regarding the consensus for six Fed rate cuts, weaker-than-expected GDP figures from China, Middle East tensions, a strengthening US dollar trading at 103.65, and a surge in INDIA VIX to 15.08 levels.

Despite the short-term challenges, the medium-term outlook for Nifty favored the bulls on steep corrective declines.

Notably, the Nifty IT index resisted the selloff, outperforming as Q3 results from top IT firms exceeded expectations.

Aggarwal said, “Investors closely monitored Q3 corporate results from companies like IndusInd Bank, Polycab India, Jindal Stainless, Tata Communications, Poonawalla Fincorp, IndiaMART, Mastek, Home First Finance Company India, Shoppers Stop, and South Indian Bank”.

Key indicators, including the dollar index breaking above its 13-day range, Brent Crude remaining steady between USD 80-75 a barrel, and US 10-year Bond yields sustaining above 4.05 per cent, hinted at a potential shift in sentiment in the financial markets.

As the trading day progressed, the market remained sensitive to global developments, with investors navigating through short-term challenges and focusing on corporate results for cues about the market direction in the coming days. (ANI)

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