Sensex and Nifty drop due to poor Q3 earnings and Asian share decline.
Stock markets in India began the week in the red due to disappointing third-quarter corporate earnings and a significant decline in Asian shares affecting investor sentiment. The Sensex was down by 0.57 percent, dropping 433 points to 75,756.52, while the Nifty 50 fell by 0.56 percent, losing 128.45 points to reach 22,963.75 as of 9:32 AM.
On the Nifty, companies such as Britannia, HUL, ICICI Bank, and Dr. Reddy’s Labs were among the top gainers, whereas HDFC Bank, Infosys, NTPC, Bharat Electronics, Hindalco, Trent, and Axis Bank faced considerable declines. Aside from realty, all sectoral indices were trading in negative territory.
Analysts attributed the decline in indices to ongoing selling pressure, emphasizing the importance of monitoring levels such as 22,950 for potential long positions. Investors were advised to consider purchasing specific stocks with a medium to long-term perspective if the index were to fall to 22,600 during the week.
Foreign institutional investors (FIIs) continued their selling spree, aligning with a cautious global sentiment amid uncertainties. FIIs sold equities amounting to Rs 2,658 crore on Friday, adding to market pressures. However, domestic institutional investors (DIIs) provided some relief by making net purchases of Rs 2,450 crore, although this was insufficient to offset the general bearish trend.
Mandar Bhojane, equity research analyst at Choice Broking, highlighted that market participants remained vigilant in light of critical global and domestic events. It was advised for traders to closely observe price movements at crucial support and resistance levels before committing to significant trades.
The market’s trajectory for the week ahead will be shaped by events such as the upcoming Union Budget, the ongoing flow of Q3 earnings reports, and key global economic indicators like crude oil prices and US GDP growth data. Finance Minister Nirmala Sitharaman is set to present the Union Budget in Parliament on February 1, adding to the anticipation surrounding future market movements.
