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Sensex, Nifty Open Lower Amid Metal Stock Weakness, Global Sell-Off

Indian equity indices opened lower on Thursday, dragged down by weakness in metal stocks and poor global market cues. Key Asian markets like Shanghai, Nikkei, and Kospi traded in the red, following a tech-led sell-off on Wall Street. While FIIs turned net buyers in metal and capital goods in January, analysts advise caution amid ongoing global uncertainties. Immediate technical support for Nifty is seen at the 25,600-25,650 zone.

Key Points: Sensex, Nifty Fall on Metal Weakness, Global Cues

  • Sensex down 254 points
  • Metal stocks major losers
  • Global tech sell-off weighs
  • FIIs net buyers in metals in Jan
2 min read

Sensex, Nifty open lower over weakness in metal stocks

Indian markets open lower tracking global tech sell-off and weakness in metal stocks. Nifty support at 25,600, resistance at 25,900.

"investors are advised to remain selective and disciplined - analysts"

Mumbai, Feb 5

The Indian equity markets posted moderate losses in early trade on Thursday, tracking poor global cues and weakness in metal stocks.

As of 9.23 am, Sensex lost 254 points, or 0.30 per cent, to reach 83,563, and Nifty eased 85 points, or 0.33 per cent to settle at 25,690.

Main broad-cap indices posted moderate losses, as the Nifty Midcap 100 eased 0.04 per cent, and the Nifty Smallcap 100 edged down 0.31 per cent.

Major sectoral indices traded mixed, with IT insulated from global rout in tech stocks. Most notable losers were metal, down 1.71 per cent and realty, down 0.82 per cent. Nifty oil and gas was the major gainer, up 1.02 per cent.

Immediate support for Nifty lies at 25,600-25,650 zone, while resistance is anchored at 25,900-25,950 zone, market watchers said.

Asia-Pacific markets mostly traded in the red in the morning session as the tech sell-off on Wall Street gained momentum.

In Asian markets, China's Shanghai index declined 1.03, and Shenzhen eased 0.88 per cent, Japan's Nikkei lost 0.73 per cent, and Hong Kong's Hang Seng Index edged down 1.07 per cent. South Korea's Kospi lost 2.84 per cent.

The US markets ended largely in the red overnight as Nasdaq eased 1.51 per cent. The S&P 500 declined 0.51 per cent, and the Dow Jones added 0.53 per cent.

NSDL data showed that foreign institutional investors remained net sellers across most sectors in January, but turned buyers in metal and capital goods stocks during the month.

On February 4, foreign institutional investors (FIIs) net bought equities worth Rs 30 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 250 crore.

Given ongoing global uncertainties and elevated market volatility, investors are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market corrections, said analysts.

- IANS

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Reader Comments

S
Sarah B
Interesting to see the global tech sell-off not hitting Indian IT hard. Shows some resilience. But the FII data is concerning - they were net sellers in Jan. Need to see if DII buying can continue to support the market if foreign money stays cautious.
P
Priyanka N
Metal stocks down again? 😓 My portfolio is taking a hit. But analysts are right, we need to be selective. Maybe time to look at oil & gas or other gainers instead of trying to catch a falling knife in metals.
A
Aman W
With elections around the corner, some volatility is expected. This isn't a crash, just a healthy pullback. Support at 25,600 looks strong. Good to see DIIs are net buyers, showing domestic confidence.
K
Karthik V
Respectfully, the constant "buy on dips" advice from analysts feels generic. For retail investors like me, these "moderate losses" can be significant. More practical guidance on risk management would be helpful, not just "focus on fundamentally strong stocks."
M
Michael C
Tracking global cues closely. The sell-off in Asian markets, especially South Korea, is sharp. Indian markets are relatively better off, which is a positive sign. The key will be how the US markets behave tonight.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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