Technical analysis suggests that the index could advance towards 24,200-24,220. (AI image)
Stock market today
: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Monday. While BSE Sensex tanked over 1,200 points, Nifty50 went close to 23,600. At 1:07 PM, BSE Sensex was trading at 78,380.65, down 842 points or 1.06%. Nifty50 was at 23,742.35, down 262 points or 1.09%.
Indian equity indices experienced a significant decline of over 1% on Monday despite a positive opening, with Sensex and Nifty50 falling due to poor performance in banking and consumer sectors.
BSE-listed companies saw their total market value reduce by Rs 9.92 lakh crore to Rs 439.86 lakh crore, according to an ET report.
The Nifty PSU Bank index recorded a 3.4% decline, with Union Bank of India falling 7% following decreased business and deposits in the quarter ending December 31.
Consumer sector stocks declined 1%, notably Dabur India’s 4% drop after forecasting minimal sales growth for the December quarter.
Dr. V K Vijayakumar of Geojit Financial Services said: “The market is likely to be influenced by the negative factors impacting FII flows and some positive domestic factors which can support the market. The external macro construct continues to be unfavourable with the dollar index at 109 and the 10-year US bond yield at 4.62%. The FIIs are likely to continue selling till the yields decline and the dollar stabilises.”
According to a Bloomberg report, retaining foreign investors’ interest in
Indian equities
presents challenges, particularly given the economic slowdown and rupee depreciation. However, the recent downturn in Chinese markets at the start of the year provides international fund managers an opportunity to reassess their positions. Previously, several investors reduced their Indian holdings to capitalise on Chinese market gains.
In an interview with Bloomberg Television on January 5, Ed Yardeni of Yardeni Research suggested that fund managers should consider maintaining their investments in India, despite elevated valuations. His recommendation stems from growing doubts surrounding the sustainability of China’s economic rebound.
Asian markets showed mixed performance, with Japan’s Nikkei falling 1.1% while South Korea’s market rose 1.1%. European futures showed minimal movement, and US futures indicated a slight decline.
FIIs sold equities worth Rs 4,227 crore on January 3, while domestic institutions purchased Rs 820 crore worth.
Oil prices remained stable at October highs, with Brent crude at $76.66 per barrel and WTI at $74.18.
The rupee traded at 85.78 against the US dollar, while the dollar index stood at 108.88.
