The Indian equity markets started lower on Thursday, influenced by mixed global cues and a decline in IT stocks. The Sensex dropped 347 points to 81,997, while the Nifty fell 81 points to 25,260 by 9.30 am. The rupee also weakened, crossing the crucial 92 per dollar mark in early trade, surpassing its previous all-time low.
Main broad-cap indices displayed a contrast with benchmark indices, with the Nifty Midcap 100 rising by 0.21% and the Nifty Smallcap 100 surging by 0.47%. While most sectoral indices were in the red, sectors like metal, PSU bank, realty, and oil and gas showed gains. Notably, Nifty metal and PSU bank saw increases of 1.76% and 0.70% respectively, while Nifty oil and gas rose by 0.78%.
Nifty IT experienced a significant decline of 1.29%. Market analysts mentioned that the recent 300-point surge in Nifty was a temporary reaction in anticipation of the Union Budget. They noted that bears are unlikely to carry substantial short positions into the Budget, leading them to cover some shorts, contributing to the market rally. Analysts also highlighted that unless there are significant Budget announcements, foreign institutional investors (FIIs) are expected to maintain their strategy of shifting capital away from India.
