Profit-taking triggered a bearish market sentiment even after minor bullish signs from the start. Indian indices, namely BSE Sensex and Nifty, opened with around 350 points and 25,750, respectively. Markets remained wary over mixed sectoral performance and uncertainty provided by certain stocks.
Bad Performances in Several Sectors Drove Markets Down
Nearly all sectoral indices were reported in the negative territory, displaying poor breadth in the process. The major declinants among these included banking, financial services, metals, FMCG, and realty.
Counterbalancing this situation, a little open buying looked quite promising in the IT sector. This was also seen in the pharma and health care sectors as well as some midcap stocks. Also, there were substantial net buying, particularly in Nifty500 stocks. Thus, speculation on the other side dragged markets lower.
The share value of Tata Investment Corporation shot up by almost 13%, with the knee-jerk position embellished by the leadership crisis tumbling out the cupboards at Tata Sons.
Share prices of Waaree Energies slid down in contrast with the information about the company’s decision to set up an ₹8,000 crore lithium-ion gigafactory outlet in Andhra Pradesh.
Global Cues
Global markets were giving mixed signals; those in Asia were mostly on the higher side, but US and US futures never did show any better abwaertche Gegenbewegung, while profit-taking movements left little room for a change of a-wait-and-see attitude. All credit is going to geopolitical concerns and the interest rate scenario, which has further helped heat up commodity and currency markets.
Precious Metals’
Gold and silver picked up on the back of decreased prices, assisted by geopolitical tensions spurring safe-haven demand. But the market is wary of US Fed rate to make any further upsides impossible. Analysts advise that profits should be taken at higher levels and no further long positions should be created now.
Conclusively, market pundits suggest volatility to stay in the near term with a focus on global cues, interest rate resourcefulness, and company-specific catalysts.
