NewKerala.com

Sensex, Nifty Open Lower as IT Stocks Plunge Over 3.5%

Indian equity benchmarks Sensex and Nifty opened lower on Thursday, pressured by a sharp 3.58% decline in the IT sector index. Broader market losses were more pronounced, with midcap and smallcap indices falling over 0.75%. Analysts attribute the weakness to strong US jobs data reducing hopes for near-term Federal Reserve rate cuts. While foreign institutional investors were net buyers, the medium-term market outlook remains constructive despite January's correction.

Key Points: Sensex, Nifty Open in Red; IT Index Dips 3.58%

  • IT index plunges 3.58%
  • Midcap & Smallcap indices fall sharply
  • US jobs data dampens rate cut hopes
  • FIIs net buyers, DIIs net sellers
  • Asian markets mixed
2 min read

Sensex, Nifty open in red; IT index dips 3.58 pc

Indian stock markets opened lower with IT stocks leading losses. Key levels, global cues, and institutional activity analyzed.

"Immediate support for Nifty is placed at 25,800-25,850 zone - market watchers"

Mumbai, Feb 12

The Indian equity markets opened lower early on Thursday weighed down by IT stocks.

As of 9.25 am, Sensex lost 397 points, or 0.47 per cent, to reach 83,836, and Nifty lost 111 points, or 0.43 per cent, to settle at 25,842.

Main broad-cap indices posted stronger losses than benchmark indices, as the Nifty Midcap 100 declined 0.76 per cent, and the Nifty Smallcap 100 dipped 0.88 per cent.

All sectoral indices traded in the red except FMCG, private banks as well as oil and gas. Most notable losers were Nifty IT down 3.58 per cent, realty down 1.11 per cent and media down 1.04 per cent.

Immediate support for Nifty is placed at 25,800-25,850 zone, while resistance is anchored at 26,050-26,100 zone, market watchers said.

Analysts said that the latest US jobs data indicating addition of 1.3 lakh jobs last month and unemployment falling to 4.3 per cent points weakened hopes of rate cuts by the Fed in the near-term.

In India, market watchers said that the rate cutting cycle is over since growth is good and inflation is expected to inch back to the RBI's long-term target by the end of FY27.

In Asian markets, China's Shanghai index added 0.12, and Shenzhen gained 0.81 per cent, Japan's Nikkei gained 0.1 per cent, and Hong Kong's Hang Seng Index eased 0.97 per cent. South Korea's Kospi gained 2.74 per cent.

The US markets ended largely in the red overnight as Nasdaq eased 0.16 per cent. The S&P 500 traded flat, and the Dow Jones lost 0.13 per cent.

On February 11, foreign institutional investors (FIIs) net bought equities worth Rs 944 crore, while domestic institutional investors (DIIs) were net sellers of equities worth Rs 125 crore.

Indian equities corrected in January amid global volatility and FII outflows; however, the medium-term outlook remains constructive, according to analysts.

- IANS

Share this article:

Reader Comments

P
Priya S
The IT index dip is concerning. So many of our jobs are tied to that sector. Hope this is temporary and not a sign of reduced global demand for Indian tech services. Fingers crossed for my husband's company.
R
Rohit P
Midcap and Smallcap down more than benchmarks... that's where the real pain is for retail investors like me. My portfolio is deep in the red today. Time to just hold and not look at the app for a few days. 😅
S
Sarah B
Interesting to see the connection to US jobs data. It's a reminder of how interconnected global markets are. The Fed's decisions in Washington directly impact Sensex in Mumbai.
V
Vikram M
With RBI likely done with rate cuts, the focus will be entirely on corporate earnings now. This dip might be a healthy consolidation. The article says the medium-term outlook is constructive, that's the key takeaway.
K
Karthik V
Respectfully, I feel the media focuses too much on daily fluctuations. For a common investor, these headlines create unnecessary panic. We need more education on long-term investing rather than minute-by-minute tracking.
N
Nisha Z
FIIs were net buyers yesterday! That's a positive sign despite today's fall. Shows some big

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

Leave a Comment

Minimum 50 characters 0/50