The Indian stock market opened with a decline on Thursday. Benchmark equity indices Sensex and Nifty fell in early trade on Thursday due to heavy losses in shares of IT companies like Infosys and Tata Consultancy Services amid weak signals from the US markets. In early trade, the rupee rose by 38 paise to 90.40 against the US dollar.
Continuing the previous day’s decline, the 30-share BSE Sensex fell 421.66 points or 0.50 per cent to 83,811.98 in early trade. At the same time, the 50-share NSE Nifty fell 121.10 points or 0.47 percent to 25,832.75. Analysts said rising crude oil prices have also fueled a sense of caution among investors.
Condition of Sensex companies
Among Sensex constituents, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Eternal, Mahindra & Mahindra, Asian Paints, HDFC Bank, Adani Ports, IndiGo, Maruti Suzuki India and Sun Pharmaceuticals were among the laggards. On the other hand, ICICI Bank, Bharat Electronics Ltd, Bajaj Finance, State Bank of India, Tata Steel, NTPC, Titan, Larsen & Toubro, Axis Bank and Bharti Airtel were among the gainers. Among sectoral indices, IT sector witnessed the biggest decline, falling by 3.95 per cent, while the IT-focused index on BSE declined by 3.87 per cent.
Mixed situation seen in Asian markets
In Asian markets, South Korea’s Kospi index rose more than 2 percent. Japan’s Nikkei 225 index and Shanghai’s SSE Composite index were also trading in positive territory, while Hong Kong’s Hang Seng index was in decline. The US stock market closed with a decline in overnight trading on Wednesday.
Vijayakumar further said that the latest US employment data showed that 1,30,000 new jobs were created last month and the unemployment rate declined to 4.3 percent. This makes it likely that the Fed will not cut interest rates in the near future. In India too, it seems that the interest rate cut phase is over, as growth is good and inflation is expected to reach the RBI’s long-term target by the end of FY2027.
The price of Brent crude increased to US $ 69.72 per barrel.
Global oil benchmark Brent crude rose 0.46 percent to US$69.72 per barrel. Meanwhile, foreign institutional investors bought shares worth Rs 943.81 crore on Wednesday, while domestic institutional investors sold shares worth Rs 125.36 crore on Wednesday, according to exchange data. On Wednesday, the 30-share BSE Sensex closed 40.28 points lower at 84,233.64, while the NSE Nifty closed 18.70 points higher at 25,953.85.
