Broader Markets Continue to Witness Selling Pressure
The Sensex is down by 0.85 per cent, trading at 76,720.88, while the Nifty 50 has declined by 0.90 per cent to stand at 23,220.75.
Market Update at 9:45 AM: The equity markets opened on a cautious note this morning, extending their downward trajectory, with widespread pressure observed across broader indices. Currently, the Sensex is down by 0.85 per cent, trading at 76,720.88, while the Nifty 50 has declined by 0.90 per cent to stand at 23,220.75.
In the broader market indices, the Nifty Midcap 150 slid by 1.48 per cent to 19,952.50, and the Nifty Smallcap 250 recorded a steep fall of 1.66 per cent, settling at 16,553.60. Market volatility has risen sharply, with the India VIX surging by 7.22 per cent to 15.99, reflecting heightened uncertainty.
Among the sectoral indices, Nifty FMCG, Nifty IT, and Nifty Private Bank emerged as the outperformers. On the other hand, Nifty Realty, Nifty Consumer Durables, and Nifty Media were the major underperformers, showcasing broad-based selling.
Within the Nifty 50, the top performers included IndusInd Bank, followed by Britannia and Axis Bank. Conversely, the laggards were led by Apollo Hospitals followed by Adani Enterprises and Grasim.
The overall market breadth remained skewed towards declines, with 2,037 stocks declining, compared to only 397 advancing, signifying persistent bearish sentiment.
Pre-Market Update at 8:15 AM: US markets ended sharply lower on Friday, as a strong jobs report heightened inflation concerns, keeping the Federal Reserve cautious about rate cuts. The Dow Jones Industrial Average dropped 696.75 points or 1.63 per cent to close at 41,938.45. The S&P 500 fell 91.21 points or 1.54 per cent to 5,827.04, while the Nasdaq Composite declined 317.25 points or 1.63 per cent to 19,161.63.
Indian markets are expected to open on a weak note on January 13, with GIFT Nifty pointing to a decline. As of 7:00 AM IST, Nifty futures were trading at 23,338, down significantly.
On January 10, Indian markets closed lower after a volatile session, with selling across most sectors. However, IT stocks outperformed on the back of TCS' better-than-expected Q3 earnings. The Sensex ended the day down 241.30 points or 0.31 per cent at 77,378.91, while the Nifty slipped 95 points or 0.40 per cent to settle at 23,431.50.
US bond yields moved higher on Monday. The 10-year Treasury yield rose 149 basis points to 4.75 per cent, while the 2-year yield surged 270 basis points to 4.37 per cent.
The US dollar index held steady at 109.66, supported by rising Treasury yields and ongoing optimism about the resilience of the US economy.
WTI crude futures climbed to their highest levels in over three months, trading above USD 75 per barrel. The rally was driven by expectations of stricter US sanctions on Russian crude, which could impact supplies to major importers like China and India.
Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 2,254.68 crore on January 10, marking the sixth consecutive session of outflows. Domestic institutional investors (DIIs), however, bought equities worth Rs 3,961.92 crore on the same day.
Manappuram Finance, Bandhan Bank, Hindustan Copper, L&T Finance, and RBL Bank remain under the F&O trading ban today.
Disclaimer: The article is for informational purposes only and not investment advice.