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The Indian stock market opens with a major cut, taking clues from global trends on Thursday.
The BSE Sensex opened in the red with a cut of 606.77 points or 0.76 per cent at 79542.10 while the Nifty 50 at the National Stock Exchange (NSE) opened at 24232.00 dipping 182.50 points or 0.75 per cent. The Nifty Midcap also opened in red territory at 56439.80, down 433 points or 0.76 per cent. Nifty Bank at NSE also opened in red at 50,762.30. Among the sectoral stocks at NSE, Bank, Financial Services, FMCG, IT, Metal, Pharma, PSU Banks, Private Banks, Realty, Healthcare, Consumer Durables, Oil and Gas opened in red during the initial trading hour. The sectoral stocks of Media and Auto remained in the green. As per the market analysts, the declining global sentiment after the disappointment that arose after the earnings disclosure of Alphabet and Tesl have greatly impacted the market globally. "Global sentiment getting hit. Rotation from big tech to underperforming sectors had started in the US as part of the "Trump Trade". Then, results came in soft for Alphabet/Google and Tesla. That raised further questions on valuations for Big Tech and AI investments which have been on a massive scale," said Ajay Bagga, a banking and market expert. "Indian market futures are indicating a weak start, sentiment was hurt by an increase in taxes on investor profits, and foreign institutions have been sellers for the last two days. However, the domestic institutions, who are sitting on a large cash position have been buying in this dip, providing a recovery to the markets on both the lasttwo days, he added. Varun Aggarwal MD, Profit Idea said, "Market sentiment remains cautious with technical indicators suggesting potential for further downside if key support levels are breached. Investors are closely watching global cues and economic data for market direction amid ongoing volatility." The contrasting performance between the benchmark indices and broader markets highlights divergent investor sentiment amid budgetary and earnings scenarios. In the last five trading days, the BSE Sensex has fallen 0.79 or 634.86 points, while the Nifty at the National Stock Exchange (NSE) has seen a decline of 0.51 per cent or 125.60 points in the same period. In global markets, Asian indices including Japan's Nikkei 225 and South Korea's Kospi saw significant declines, mirroring losses on Wall Street where the S&P 500 and Nasdaq dropped sharply to multi-week lows. Tesla and Alphabet posted notable declines, contributing to Nasdaq's largest single-day percentage drop since October 2022.(ANI)
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