Indian equities received an initial dip on a considerable scale on Friday, with cues heavy from the global markets after tech stocks were sold off on bourses touching two-three months low levels, and both the Nifty 50 and the BSE Sensex experiencing steep losses in early trade.
As of 9:16 AM., the Nifty 50 stood at 25,592.75, your decline being 214 paise or 0.83% below. Meanwhile, the BSE Sensex traded lower by 744 paise, or 0.89%, at 82,931.27.
IT rout remains a huge woe on the market
Market sentiments remain fragile thanks to the flagship information technology stocks being pushed down and with the December quarter earnings season near an end. Analysts describe the overall market as a little lateral, guided by stock-specific actions.
“Markets have entered a volatile phase where they will make the investors anxious but also give a few selective opportunities,” said Dr. VK Vijayakumar, Chief Investment Strategist of Geojit Securities Ltd.
He observed that the latest wit energy of 2.04 percentage points on the high-tech Nasdaq Composite market was not a crash but suggested that the trend would build on within the US and globally. According to him, the US correction in AI-related stocks could benefit India, with its full participation in such a rally last year. The immediate concern should be the drastic fall in home-grown IT stocks.
“Anthropic shock,” the event named so by Nayar, has not fully played out in the technology sector even though its repercussions would be very severe. He thinks this might not be the time for hasty selling.
Auto stocks show resilience
Market analysts are believing that periods of market volatility could provide them an opportunity to add growth stocks in the portfolio of high quality, more so those companies that presented quite encouraging results in the third quarter. Autostocks that gave evidence of great earnings and robust growth visibility should remain also relatively protected. In such cases, experts regard the expected downward movement as an opportunity, if short term, to enter long positions.
Global Momenta Remain Bearish
US markets dropped yesterday, mainly driven by technology. The Nasdaq Composite Index saw a 2 percent fall with investors rapidly escrowing tech stocks expressing increasingly greater concern for the acid tests of the above-mentioned trends.
The technology shares in Asia retreated from their lifetime high pinnacles directly following the downward movement in technol,ogy stocks in the USA. Growing AI-based disruption concerns led to a shift toward U. S. Treasuries.
Foreign institutional investors (that is, foreign portfolio investors, or FPIs) were net buyers of equity on Thursday to the tune of 108 crores. Domestic institutional investors (DIIs), too, were net buyers of 277 crores. The data indicates the truth of it.
Markets might see a disproportionately high level of volatility in the coming days, as fears persisting over global inflation data, trade, and foreign fund inflows cannot be subdued.
