Sensex, Nifty start on choppy note; IT, bank stocks decline
The Sensex and Nifty opened on a choppy note on Tuesday, tracking weakness in index heavyweights Infosys, ICICI Bank, and HCL Tech amid a negative trend in global markets.
The 30-share Sensex was trading 34.62 points, or 0.06 percent, lower at 60,101.16 after swinging over 200 points in the opening session. Likewise, the Nifty fell 2.45 points, or 0.01 percent, to 17,943.50.
HCL Tech was the Sensex pack’s biggest loser, losing more than 2%, followed by M&M, Infosys, Tech Mahindra, ICICI Bank, Bajaj Finance, and IndusInd Bank.
Bajaj Auto, Titan, Dr. Reddy’s, SBI, and ITC, on the other hand, were among the gainers.
The 30-share index closed 76.72 points, or 0.13 percent, higher at 60,135.78, while the Nifty rose 50.75 points, or 0.28 percent, to its all-time closing high of 17,945.95.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth Rs 1,303.22 crore.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market’s resilience in general, and the broader market’s momentum in particular, can be explained by only one factor: the exuberance and dominance of newbie retail investors.
He noted that institutional selling is easily absorbed by retail investors who are unconcerned about valuations.
Weakness in IT and strength in banking, as expected in the previous session, should not become a trend. Infosys, Wipro, and HCL Tech’s results may not disappoint the market as much as TCS’s, he said, adding that TCS’s results were good but fell short of market expectations.
“Now, the INR at 75.35 per dollar is becoming a significant tailwind for IT. As a result, investors should continue to invest in IT and even buy on dips because the sector’s demand remains strong. Concerns have been raised about the price of crude oil at USD 84 and the potential for inflationary fallout “He stated this.
In other Asian markets, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading lower in mid-session deals.
In the overnight session, stock exchanges in the United States also ended on a negative note.
Meanwhile, Brent crude fell 0.07 percent to USD 83.59 per barrel on the international oil market.
