Domestic benchmark indices opened lower on Tuesday with selling pressure in IT, realty, auto, financial services, FMCG, media, and private bank sectors on the Nifty.
At approximately 9:25 am, the Sensex was down 434.64 points (0.56%) at 77,813.49, while the Nifty fell 108.90 points (0.46%) to 23,536.
Market sentiment was mixed. On the National Stock Exchange (NSE), 1,096 stocks advanced, while 1,040 declined.
Market experts observed, “December has been a weak month for global equity markets. The S&P 500 is down by 2.34%, and the Nifty by 2.6%.”
“Markets are cautiously entering the New Year due to prevailing uncertainty and stretched valuations,” they added.
The Nifty Bank slipped 191.50 points (0.38%) to 50,761.25. The Nifty Midcap 100 index dropped 244.95 points (0.43%) to 56,944.80, and the Nifty Smallcap 100 index fell 21 points (0.11%) to 18,618.95.
Buying interest was seen in PSU banks, pharma, metal, energy, commodities, PSE, and healthcare sectors.
Among Sensex constituents, Tech Mahindra, HCL Tech, TCS, Infosys, Zomato, and NTPC were the top losers, while Tata Motors, ITC, Tata Steel, SBI, Kotak Mahindra Bank, and Nestle India gained.
In the previous trading session, the Dow Jones declined 0.97% to 42,573.73, the S&P 500 fell 1.07% to 5,906.94, and the Nasdaq dropped 1.19% to 19,486.79.
Asian markets presented a mixed picture, with China trading lower and Hong Kong in positive territory.
Experts commented, “High US bond yields and a strong dollar will likely lead to continued selling by FIIs on any market rise. DII buying may not be sufficient to counter this and drive significant market gains.”
On December 30, foreign institutional investors (FIIs) sold equities worth Rs 1,893.16 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,173.86 crore.
(With IANS Inputs)