Indian stock markets opened on a negative note on Tuesday, with the benchmark index, Sensex, declining by 317 points. At the opening bell, the Sensex stood at 65,511, while the broader Nifty index was at 19,537. This downward trend in the stock market reflects cautious sentiment among investors.
Among the firms listed on the Sensex, major laggards included Maruti, State Bank of India, JSW Steel, HDFC Bank, Kotak Mahindra Bank, Tata Steel, Tata Motors, ITC, Reliance Industries, and NTPC. On the other hand, gainers on the index included Asian Paints, Hindustan Unilever, UltraTech Cement, and Mahindra & Mahindra.
In Asian markets, Tokyo and Hong Kong were reported as trading lower, while Shanghai was in the green zone. Meanwhile, the US markets showed a predominantly positive trend on Monday.
The global oil benchmark, Brent crude, saw a decline of 0.89 percent to reach USD 89.90 per barrel. Foreign Institutional Investors (FIIs) had reportedly sold equities worth Rs 1,685.70 crore on the previous Friday, according to exchange data. FPIs (Foreign Portfolio Investors) turned net sellers and withdrew over Rs 14,767 crore from the Indian equities in September. This shift was mainly attributed to the appreciation of the US dollar, a steady increase in US bond yields, and a spike in crude oil prices.
It’s important to note that the equity markets in India remained closed on Monday in observance of Mahatma Gandhi Jayanti.
Analysts have noted mixed signals for the October series. Historically, October has been a favorable month for the markets. However, the ongoing sustained selling by FIIs, the rising dollar index, which crossed 107, and the US 10-year bond yield reaching a 16-year high of 4.68 percent pose significant challenges for the market. These factors are likely to keep FIIs engaged in selling activities. On a positive note, the 5 percent drop in Brent crude prices may encourage bullish sentiment in the market.
The BSE benchmark had witnessed an increase of 320.09 points or 0.49 percent to close at 65,828.41 on the previous Friday. Meanwhile, the Nifty had advanced by 114.75 points or 0.59 percent to finish at 19,638.30.
Key highlights:
Sensex gains: The BSE Sensex concluded the trading day at 65,828.41, marking an increase of 320 points or 0.49%.
Nifty surges: The Nifty, the broader market indicator, closed at 19,638.30, showing a rise of 115 points or 0.59%.
Midcap and smallcap rally: The BSE Midcap index recorded substantial gains, rising by 1.3%, while the BSE Smallcap index also registered an uptick of 0.6%.
Sectoral performance: All major sectoral indices, except Information Technology, ended the day in the green. The metal, power, oil & gas, PSU Bank, and healthcare indices each saw gains of 1-3%.
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