The Indian equity markets experienced moderate losses in early trading on Thursday, influenced by weak global cues and a decline in metal stocks. The Sensex dropped by 254 points, or 0.30%, reaching 83,563, while the Nifty decreased by 85 points, or 0.33%, settling at 25,690. Notably, the Nifty Midcap 100 and Nifty Smallcap 100 indices also saw slight declines.
Various sectoral indices exhibited mixed performance, with the IT sector remaining stable despite the global tech stock sell-off. Metal stocks faced a significant decline of 1.71%, while realty stocks also dropped by 0.82%. On the other hand, Nifty oil and gas emerged as the top gainer, rising by 1.02%.
Market analysts highlighted that the immediate support level for Nifty is at the 25,600-25,650 zone, with resistance levels at 25,900–25,950. In the Asian markets, several indices traded in the red during the morning session, following the tech sell-off on Wall Street, with major markets like China, Japan, and South Korea experiencing declines.
Foreign institutional investors were net sellers across most sectors in January, but they turned into buyers for metal and capital goods stocks in the same month. On February 4, foreign institutional investors net purchased equities worth Rs 30 crore, while domestic institutional investors were net buyers of equities worth Rs 250 crore. Analysts advised investors to maintain selectivity and discipline, focusing on fundamentally strong stocks during market corrections amid ongoing global uncertainties.
