Domestic equity markets started the day flat on Wednesday influenced by mixed global cues and a drop in oil prices. The Sensex was at 74,567, up 8 points or 0.01%, while the Nifty stood at 23,387, gaining 8 points or 0.03%. Initially, the benchmark indices opened at 74,439.34 and 23,362.45, respectively.
Among sectoral indices, Nifty IT and Nifty Media saw losses, whereas Nifty Metal, Nifty FMCG, and Nifty Chemicals recorded gains. Notable laggards in the Nifty pack included Eicher Motors, Power Grid, NTPC, Infosys, Dr Reddy’s Laboratories, Axis Bank, and Bajaj Finance.
Microcap and smallcap stocks led the way as the top gainers in the category-wise performance. Concurrently, the volatility index India VIX decreased by 0.82% to 19.12. Market experts highlighted cautious investor sentiment due to concerns surrounding the prolonged West Asia crisis and pressure on India’s macroeconomic indicators.
Analysts suggested that foreign institutional investors (FIIs) might continue as sellers in the market, with investors likely favoring defensive sectors like pharmaceuticals amidst ongoing uncertainty. Long-term investors were advised to steadily accumulate quality banking stocks during market declines.
In the commodities market, the international oil benchmark Brent crude dropped by 1.31% to $106.35 per barrel, while US West Texas Intermediate (WTI) crude fell by 1.37% to $100 per barrel. Across Asian markets, Japan’s Nikkei traded 0.5% higher at 63,085, Hong Kong’s Hang Seng rose by 0.32% to 26,432, and South Korea’s KOSPI was nearly 2% higher at 7,794.81.
In the US, Wall Street experienced a negative trend, with the S&P 500 closing 0.16% lower at 7,400.96, and the Nasdaq settling 0.71% down at 26,088.20.
