Markets in the Red! Sensex & Nifty Slip Despite Strong Open – Check Top Gainers & Losers

Sector Watch: Nifty Energy Outperforms, Midcap & Smallcap Indices Take a Hit

Market Update at 9:30 AM:

Despite weak global cues, Indian indices opened marginally higher on January 8 but turned negative soon after. At this hour, the Sensex has dipped by 0.23 per cent, trading at 78,033.04, while the Nifty 50 is down 0.17 per cent, standing at 23,669.

In the broader indices, the Nifty Midcap 100 is down by 1.09 per cent, trading at 56,254, and the Nifty Smallcap 100 has dipped 1.08 per cent, standing at 18,481. Volatility showed signs of easing, with the India VIX declining 0.27 per cent to 14.64, indicating reduced uncertainty.

Among sectoral indices, the top performers were Nifty Energy and Nifty Bank, while the laggards included Nifty MID SELECT and Nifty Realty.

Within the Nifty 50, the Top Gainers were Dr. Reddy’s Laboratories (DRREDDY), ONGC, and Reliance Industries (RELIANCE). On the other hand, the biggest losers were Shriram Finance (SHRIRAMFIN), Trent (TRENT), and Bharat Electronics Limited (BEL).

Market breadth reflects negative sentiment, with more stocks declining than advancing.

Pre-Market Update at 8:30 AM

Wall Street closed lower on Tuesday as strong economic data raised concerns about a potential inflation rebound, which might prompt the Federal Reserve to slow its pace of monetary policy easing.

• The Dow Jones Industrial Average fell 178.20 points (0.42 per cent) to 42,528.36.
• The S&P 500 lost 66.35 points (1.11 per cent) to 5,909.03.
• The Nasdaq Composite dropped 375.30 points (1.89 per cent) to 19,489.68.

Asian markets presented a mixed trend. The Nikkei declined by 0.5 per cent, while the Kospi gained 1 per cent. Regional stocks mirrored Wall Street’s losses, driven by a sharp selloff in Treasuries amid expectations that the Federal Reserve may delay rate cuts until after July due to inflation risks.

The GIFT Nifty indicates a flat start for the Indian market, with a modest rise of 10 points (0.04 per cent), with Nifty futures trading around the 23,768.50 level.

On January 7, Indian equity indices recovered from their previous session's losses, closing higher after a volatile trading session. Broad-based buying across sectors, excluding IT, supported the recovery.

• The Sensex gained 234.12 points (0.30 per cent) to close at 78,199.11.
• The Nifty 50 added 91.85 points (0.39 per cent) to end at 23,707.90.

The dollar strengthened on Wednesday, while the yen approached intervention levels. Strong U.S. economic data pushed yields higher, dampening expectations of near-term Federal Reserve rate cuts.

Oil prices edged higher, supported by tighter supplies from Russia and OPEC nations and a surprising increase in U.S. job openings, signaling robust economic activity.

• Brent crude rose 32 cents (0.42 per cent) to USD 77.37 per barrel as of 01:35 GMT.
• West Texas Intermediate (WTI) crude climbed 42 cents (0.57 per cent) to USD 74.67 per barrel.

Foreign Institutional Investors (FIIs) were net sellers on January 7, offloading equities worth Rs 1,491 crore. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers, investing Rs 1,615 crore, continuing their trend of robust inflows.

Hindustan Copper, Manappuram Finance, and RBL Bank are under F&O trading bans today.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.