Domestic equity benchmark indices started the session on a quiet note, influenced by weak trends in Asian markets following a significant decline in global semiconductor stocks. Sensex commenced at 76,831.75, down 4 points or 0.01%, while Nifty began at 23,971.25, showing a decrease of 24.70 points or 0.10%.
IT stocks notably surged in early trade, with Nifty IT leading the gains by 2%. Nifty MidSmall IT & Telecom also saw a 1% rise, alongside positive movements in realty, healthcare, and pharma stocks. However, energy stocks faced losses, with Nifty Oil & Gas dropping by 0.30%, followed by Nifty PSU Bank slipping 0.26%.
Market sentiment remained cautious due to a widespread drop in global chip stocks, triggered by the strong debut of China’s ChangXin Memory Technologies (CXMT), raising concerns about heightened competition in the memory chip sector. Analysts predict that Indian equities may experience pressure in early trade, despite recent index recoveries.
The Nifty broke a five-day losing streak on Monday, climbing 228 points to close at 23,995, rebounding over 400 points from Friday’s low of 23,606. Market experts highlight the crucial support level at 23,606, coinciding with the rising trendline connecting the April swing low of 22,182 and the June swing low of 23,070.
Asian markets displayed downward trends, with Japan’s Nikkei falling over 4%, South Korea’s KOSPI dropping nearly 10%, and Hong Kong’s Hang Seng trading flat. Wall Street closed with mixed results, as the Dow Jones rose by 0.5%, the S&P 500 remained largely flat, and the Nasdaq Composite declined by 0.2% due to a sharp semiconductor stock sell-off.
Furthermore, Brent crude, the international oil benchmark, saw a 1.62% decline to $86.50 per barrel, while US West Texas Intermediate (WTI) decreased by 1.68% to $80.64.
