The Indian stock market opened in the red on Monday, led by continued selling pressure in information technology (IT) stocks.
At 9:29 a.m., the Sensex slipped 242 points or 0.30 per cent to 81,220, while the Nifty declined 63 points or 0.26 per cent to 24,773.
The Nifty Bank index was also down by 0.28 per cent at 56,384. Among sectoral indices, Nifty IT and Nifty Realty were the worst performers, shedding 0.61 per cent and 2.75 per cent, respectively.
On Friday, the Nifty 50 extended its decline, slipping below the immediate support level of 24,900 and settling at 24,837. The downturn was largely attributed to weak global cues and disappointing corporate earnings.
“For any meaningful upside to resume, the index needs to decisively close above the 25,150 mark. A breakout above this level could pave the way for higher targets at 25,500 and 25,700 in the upcoming sessions. Until then, the broader outlook remains sideways to bearish,” said Mandar Bhojane of Choice Equity Broking Pvt. Ltd.
The Nifty Midcap 100 index rose 0.26 per cent, while the Nifty Smallcap 100 remained flat.
Among individual gainers were One 97 Communications (Paytm), Cyient, RBL Bank, and Indraprastha Gas (IGL). On the other hand, Indian Energy Exchange (IEX) plunged 6.84 per cent, and Kotak Mahindra Bank dropped 6.18 per cent. Lodha Developers, SBI Cards, and Central Depository Services (CDSL) were also among the early losers.
“The sharp cut in the IT index has been dragging the market down, and there is no respite in sight following the 2 per cent global workforce reduction announced by TCS. However, midcap IT stocks hold promise, given their strong growth prospects,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Investors should remain cautious and adopt a stock-specific approach during this weak market phase. There is relative safety in banks like ICICI Bank and HDFC Bank, which have delivered strong quarterly results and offer positive outlooks going forward,” he added.
In Asian markets, Japan’s Nikkei 225 slipped 0.74 per cent, while South Korea’s Kospi dipped 0.11 per cent. However, Shanghai and Hong Kong indices were trading in the green.
Overnight, U.S. markets ended on a positive note. The Nasdaq Composite advanced 0.24 per cent, the Dow Jones Industrial Average rose 0.47 per cent, and the S&P 500 gained 0.40 per cent.
Foreign Institutional Investors (FIIs) were net sellers throughout last week, offloading equities worth ₹30,508 crore so far in July. In contrast, Domestic Institutional Investors (DIIs) continued to support the market, with net purchases of ₹39,825 crore during the same period.
-IANS