Amid mixed global cues, the domestic stock market started under pressure on Thursday. Selling intensified in the early hours of trading itself, causing the Sensex to slip by nearly 400 points. Meanwhile, the Nifty was also seen trading with a decline of about 120 points. Weakness in the IT sector and uncertain trends from international markets affected investor sentiment, keeping the market under pressure.
During early trading, the BSE Sensex was seen trading at 83,821.87 with a decline of 311.77 points. At the same time, the NSE Nifty also slipped 122.50 points to reach the level of 25,831.35. Market breadth remained weak, pointing towards selling pressure. About 1,105 shares were in the green, while 1,658 shares were trading in the red. Meanwhile, no significant change was seen in 150 shares.
Selling in IT Shares, Banking and Select Stocks Provided Support
A major reason for the fall in Nifty was the weakness in the IT sector. Major stocks like Infosys, Tech Mahindra, TCS, HCL Tech, and Wipro were seen trading under pressure. Weak signals from the global tech market and the movement of the dollar influenced the sentiment of this sector.
However, the atmosphere in the market was not entirely despondent. Buying was seen in stocks like ONGC, NTPC, Eicher Motors, ICICI Bank, and Axis Bank. Specifically, the strength of banking shares worked to balance the decline to some extent.
Eyes Will Be on the Quarterly Results of These Companies Today
In Thursday’s trading, investors’ focus will be on the quarterly results of several giant companies. Many companies including Hindustan Unilever, ONGC, Coal India, Hindalco, Biocon, Hindustan Aeronautics, IRCTC, Muthoot Finance, Petronet LNG, and SpiceJet will declare their financial results.
The performance of these companies can impact the market’s direction, especially in sectors where volatility is already being witnessed. Investors may decide their future strategy based on the results.
Action Might Be Seen in These Stocks
Federal Bank:
The RBI has granted permission to ICICI Prudential AMC and ICICI Bank group companies to acquire up to 9.95% stake in Federal Bank. Following this news, activity in the share may increase, and investors will keep an eye on it.
Netweb Technologies:
There is talk of promoters selling about 3% stake via a block deal. The size of this deal is reported to be approximately ₹514.5 crore, due to which volatility may be seen in the stock.
Kernex Microsystems:
The company has received a large order worth ₹411.17 crore from Banaras Locomotive Works. This order includes the supply of 505 units of the ‘Kavach’ system, which is considered a positive signal for the stock.
Will the Pressure Continue Ahead?
Market experts say that in the coming sessions too, global signals, the movement of the dollar index, and the activities of foreign investors (FIIs) will determine the market direction. If weakness in the IT sector continues, pressure may remain on the indices.
However, if companies’ quarterly results come out better than expected, the market may find support and there could be a possibility of the decline halting. Investors’ eyes are currently fixed on these key factors.
