Sensex Snaps Three-Day Gain, Nifty Holds at 25,900 Amid IT Selloff
Benchmark indices Sensex and Nifty concluded Wednesday’s trading session largely unchanged. The 30-share Sensex ended its three-day winning streak, while the Nifty managed a slight uptick. This subdued performance was primarily driven by a significant selloff in IT stocks, with major players like TCS, Persistent, and Infosys seeing declines of up to 3%.
– BSE Sensex: Closed at 84,234, down 40 points, or 0.05%.
– Nifty 50: Ended at 25,954, gaining 19 points, or 0.07%.
Expert Insights on Market Conditions
“Indian benchmark indices traded within a narrow, volatile range after a positive start. Despite this choppiness, market sentiment remains somewhat constructive. The support stems from steady domestic institutional participation, selective earnings-driven buying, and indications of stabilizing foreign institutional investor (FII) flows,” remarked Ponmudi R, CEO of Enrich Money.
– Mixed Sectoral Trends:
– Strong gains observed in banking, auto, and healthcare stocks.
– IT sector faced broad-based selling pressure, significantly impacting overall indices.
Global Market Overview
In broader context, European equities saw a dip as investors evaluated a new wave of corporate earnings news. The pan-European Stoxx 600 fell approximately 0.2%. Notably, London’s FTSE 100 defied the trend, climbing 0.3% as risk-off sentiment led investors toward safer mining and energy stocks.
Focus on U.S. Jobs Data
As global markets keep a watchful eye on the upcoming January nonfarm payrolls data, Asian equities displayed modest growth despite underwhelming inflation figures from China. Meanwhile, U.S. stock futures experienced a slight rise late Tuesday, with S&P 500 and Nasdaq 100 futures each up about 0.2%. This comes in light of delayed reports from the Bureau of Labor Statistics due to the recent partial U.S. government shutdown.
Crude Oil Market Impact
Oil prices advanced on Wednesday fueled by heightened geopolitical risks stemming from fragile U.S.-Iran talks. Rising demand signals from India also alleviated concerns regarding potential oversupply.
– Brent Crude: Rose 57 cents, or 0.83%, to $69.37 per barrel.
– U.S. West Texas Intermediate: Increased by 56 cents, or 0.88%, to $64.52.
Analysts from LSEG noted that oil maintains a bullish outlook due to ongoing tensions and a significant U.S. military presence in the region.
Currency Update: Rupee vs. Dollar
On the currency front, the Indian rupee concluded Wednesday’s trading lower by 0.1%, ending at 90.70 per U.S. dollar compared to 90.5775 in the previous session.
(Disclaimer: Expert opinions presented reflect individual views and do not necessarily represent the views of The Economic Times.)