Domestic equity markets opened on a subdued note on Thursday, indicating a phase of consolidation, with benchmark indices Sensex and Nifty trading almost flat in early session. Weakness in IT stocks and a sharp fall in silver prices weighed on overall market sentiment.
The cautious mood followed the recent rally sparked by the India–US deal, while fresh concerns emerged in select sectors.
The Nifty 50 index opened at 25,755.90, down 20.10 points or 0.08 per cent, while the BSE Sensex slipped 60.15 points or 0.07 per cent to open at 83,757.54. The flat opening suggested consolidation at the index level after recent gains.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market is witnessing significant internal churn despite limited index-level movement. He noted that IT stocks were facing sharp declines following a sell-off in US technology shares.
According to Vijayakumar, concerns have been triggered by new automation tools launched by Anthropic, raising fears that automation could impact outsourced IT services and lead to margin pressure for Indian IT companies. He added that the actual impact remains uncertain.
In the broader market, indices on the National Stock Exchange showed mild weakness. The Nifty 100 slipped 0.12 per cent, the Nifty Midcap 100 declined 0.04 per cent, while the Nifty Smallcap index fell 0.31 per cent.
Sector-wise, trends were mixed. The Nifty Auto index gained 0.20 per cent on expectations of steady domestic demand, while the Nifty IT index dropped 0.36 per cent. The Nifty Metal index declined sharply by 1.71 per cent.
Media, Pharma, PSU Bank, Healthcare and Consumer Durables indices were trading with marginal gains in early trade.
Among individual stocks, Vedanta fell 3 per cent to Rs 661 per share, while Hindustan Zinc declined 5 per cent to Rs 605 per share.
On the fund flow front, data for Wednesday showed Foreign Institutional Investors were marginal net buyers in the cash market at Rs 29.8 crore. Domestic Institutional Investors remained strong buyers with net purchases of Rs 249.5 crore.
Market participants remain optimistic about India’s growth outlook following the growth-oriented Union Budget and recent trade agreements with the European Union and the United States, which are expected to support domestic consumption.
A continuation of a low interest rate environment is also expected to aid the auto sector and allied segments such as air conditioners ahead of the summer season. Analysts believe consumption-driven stocks may remain resilient if FII selling stabilises.
In the commodities market, silver prices witnessed a sharp decline, falling nearly 9 per cent to Rs 2,44,654 per kilogram on the MCX. Gold prices also slipped 1.25 per cent to Rs 1,51,127 per 24 karat, adding to the cautious sentiment across markets.
(ANI)
