Markets Stuck in Neutral: Sensex Slightly Up, Nifty Slips – What’s Next?

The benchmark indices show little movement, but broader markets continue to bleed. What’s driving the divergence?

Market Update at 12:00 PM

During the ongoing trading session, benchmark indices are showing a mixed trend, with the Sensex up by 0.01 per cent and the Nifty down by 0.01 per cent. However, in the broader market, the Nifty Midcap declined by 1.12 per cent, while the Nifty Smallcap dropped by 1.4 per cent. India VIX rose by 0.95 per cent, trading around the 14.82 mark, indicating an increase in market volatility.

In the sectoral landscape, Nifty IT is the only sector leading in outperformance, while all other sectors are in the red. Nifty Media, Nifty PSU Banks, and Nifty Pharma are the major underperformers. Among individual stocks, TCS, Tech Mahindra (TECHM), and Wipro emerged as the Top Gainers, while IndusInd Bank (INDUSINDBK), Shriram Finance (SHRIRAMFIN), and Hindalco were among the Top Losers in the Nifty 50.

The market breadth remained firmly negative, with 1,919 stocks declining compared to only 475 advancing, highlighting persistent weakness across the board.

Market Update at 9:40 AM

The equity markets opened on a subdued note today, extending their recent losing streak, with the broader indices witnessing significant pressure. As of now, the Sensex slipped by 0.22 per cent to trade at 77,451.24, while the Nifty 50 fell by 0.34 per cent to stand at 23,447.55. In the broader market indices, the Nifty Midcap 150 dropped 1.33 per cent to 20,398.25, and the Nifty Smallcap 250 tumbled 1.92 per cent to 16,922.40.

Market volatility rose as the India VIX surged 3.47 per cent to settle at 15.17, reflecting heightened uncertainty. Among the sectoral indices, Nifty IT, Nifty Healthcare, and Nifty Financial Services were the top gainers, while Nifty Media and Nifty PSU Bank were the major laggards. Within the Nifty 50, TCS led the gains with a 3.70 per cent rise, followed by Tech Mahindra, which advanced 2.51 per cent, and Infosys, which gained 1.62 per cent. On the downside, the biggest decliners were Shriram Finance, losing 3.48 per cent, followed by IndusInd Bank and Adani Enterprises, which fell by 2.85 per cent and 2.69 per cent, respectively.

The market breadth remained firmly negative, with 2,073 stocks declining compared to only 312 advancing, underscoring persistent weakness.

Pre-Market Update at 8:15 AM

Indian markets are poised for a weak start on January 10, as GIFT Nifty signals a decline. Nifty futures were trading around 23,586.50, indicating a drop. Wall Street remained closed overnight in observance of a day of honour for former US President Jimmy Carter. Meanwhile, Asian equities were under pressure early Thursday, reflecting caution ahead of critical jobs data that could influence the Federal Reserve's rate trajectory.

On January 9, Indian equity markets extended their losses, with the Nifty closing below the 23,550 mark amid broad-based sectoral selling, except for FMCG stocks. The Sensex ended the session 528.28 points or 0.68 per cent lower at 77,620.21, while the Nifty dropped 162.45 points or 0.69 per cent to close at 23,526.50.

The US 10-year Treasury yield fell by 30 basis points to 4.67 per cent, while the 2-year Treasury yield declined by 20 basis points to 4.25 per cent. The US dollar index held steady at 109.20, continuing its longest weekly winning streak in over a year, buoyed by expectations of robust US jobs data and rising bond yields. WTI crude oil futures climbed above USD 74 per barrel, supported by colder temperatures projected to boost heating fuel demand and supply concerns. However, weak demand signals from China and a stronger US dollar capped the upside.

Foreign institutional investors (FIIs) remained net sellers for the fifth consecutive session, offloading equities worth ₹7,170 crore on January 9, while domestic institutional investors (DIIs) purchased shares worth ₹7,639 crore.

Stocks under the F&O trading ban today include Bandhan Bank, Hindustan Copper, Manappuram Finance, L&T Finance, and RBL Bank.

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