Mumbai, June 19: On the last trading day of the week, the Indian stock market opened in the red, losing the momentum gained over the past five sessions. Major benchmarks, Sensex and Nifty 50, recorded a decline of nearly 1 percent.
The BSE Sensex opened at 76,852.86, down 557.12 points from its previous close of 77,409.98. Meanwhile, the NSE Nifty 50 slipped 176.8 points to open at 23,991.20, compared to its last close of 24,168.
As of 9:25 AM, the Sensex had fallen by 773 points, or 1.01 percent, trading at 76,635. The Nifty 50 was down 214.85 points, or 0.89 percent, at 23,953.15.
In the broader market, the Nifty Midcap index fell by 0.41 percent, while the Nifty Smallcap index declined by 0.22 percent.
Sector-wise, all sectors except Nifty Pharma and Nifty Healthcare were trading in the red. The most significant drop was seen in the IT sector, which fell by over 6 percent. Other sectors like Nifty Realty, Nifty Financial Services, Nifty Private Bank, Nifty Metal, and Nifty Auto also recorded declines of 1.01 percent, 0.62 percent, 0.50 percent, 0.42 percent, and 0.41 percent, respectively.
Among the Nifty 50 stocks, Infosys saw the largest drop of 7.7 percent, followed by TCS at 5.6 percent, Tech Mahindra at 5.08 percent, HCL Tech at 4.9 percent, and Wipro at 3.5 percent. Conversely, shares of NTPC, Adani Enterprises, Apollo Hospital, Grasim, Bharti Airtel, Trent, and Titan were trading higher.
Market experts believe that the market’s short-term outlook remains positive, supported by improving macroeconomic indicators and a sharp decline in crude oil prices.
Experts noted that short covering by foreign institutional investors (FIIs) has led to a good recovery in banking stocks. While profit booking may occur intermittently, there is still potential for growth in the banking sector.
However, the recent guidance cut by global IT service company Accenture may impact Indian IT stocks. Following the sell-off in the company’s American Depositary Receipts (ADRs), Indian IT companies could face pressure. Nevertheless, attractive valuations may lead to buying at lower levels.
Meanwhile, following the signing of an interim peace agreement between the U.S. and Iran, oil tanker movements through the Strait of Hormuz have resumed.
Global oil benchmark Brent crude fell by over 1 percent to $78.83 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude dropped nearly 1 percent to $75.78 per barrel.
Mixed signals were observed from global markets. Most Asian markets appeared under pressure, with Hong Kong’s Hang Seng Index trading down nearly 1 percent, while Japan’s Nikkei and South Korea’s KOSPI remained nearly flat.
On the other hand, U.S. stock markets closed higher, with the Nasdaq gaining nearly 2 percent and the S&P 500 Index closing up by approximately 1 percent.
Leave a Comment