After two days of gains, the stock market opened with a decline on Thursday. Sensex, Nifty and Bank Nifty – all three benchmark indices – opened in the red. The Sensex was down 250 points, and the Nifty was down 70 points. Bank Nifty also saw a fall of 170 points. However, in early trade, the market showed signs of recovery from its intraday lows but traded in the negative territory. India VIX was up 1.23%. However, small-cap stocks saw good gains today.
If we look at sectoral indices, buying trend was seen in Metal, Realty and Oil & Gas indices. All other indices were in the red. Decline was seen in IT, Auto, FMCG, Private Bank, Healthcare, Pharma and NBFCs. On Nifty 50, L&T, Hindalco, Tata Steel, Power Grid, JSW Steel, NTPC and Coal India were the top gainers. Maruti, Dr Reddy’s, Asian Paints, Titan, HUL, TCS and Tata Consumer witnessed the biggest decline.
Some uncertainties remain on both the global and domestic fronts. Record-breaking rally in gold and silver, rising crude oil prices due to Middle East tensions, and US Fed’s stance are giving mixed signals to global markets. GIFT Nifty is showing weakness, which may lead to volatility at opening.
The US Fed kept the rates unchanged after cutting interest rates three times in a row. Fed Chairman Powell said that the growth outlook is strong, but caution is needed regarding inflation. Looking at the impact on the market, the S&P 500 closed flat after touching lifetime highs intraday. The Nasdaq rose nearly 40 points to a three-month high. The Dow closed near its day’s low, up just 12 points.
GIFT Signals from Nifty and Futures
This morning, GIFT Nifty is trading below 25,400, down almost 80 points. Dow futures are also about 150 points weaker. This may put some pressure on the domestic market at the beginning of business.
Historic rally in gold and silver
In the domestic market, gold hit a record high to hit a new all-time high of ₹1,66,500. Silver also hit a new all-time high near ₹3,88,000. In the international market, gold made a record jump of almost $400 and reached a life high of above $5,625. Silver also gained 11%, reaching above $119 for the first time. Safe-haven demand and geopolitical tensions are providing strong support to metals.
Trump’s threat to Iran, rise in crude oil
Donald Trump has given a big statement regarding Iran. Trump wrote on Truth Social that if Iran does not soon agree to a nuclear deal, there will be an attack on it even more devastating than the previous attack. After this threat, tension increased in the Middle East and crude oil prices increased. Brent crude rose about 1.5%, reaching a four-month high of nearly $68 a barrel.
All-round strength in base metals
Strong buying is also seen in base metals. Aluminum rose for the sixth consecutive day and reached a four-year high. Zinc reached three-year high. Copper and nickel also strengthened by one to one and a half percent.
FII-DII Flow Update
FIIs made some purchases in cash after 15 days, but selling in net-net stock futures led to short selling of about ₹191 crore. However, domestic institutional investors continued their buying for the 105th consecutive day and invested around ₹3,361 crore in the market.
Stock movement based on results
L&T posted strong results. SBI Card also showed strong performance. Phoenix Mills’ results were mixed, while Lodha and Piramal Pharma’s results were weak. ITC results will be released in Nifty today. The results of around 16 companies including Vedanta, Paytm, Canara Bank, Manappuram, REC, IEX, Swiggy and Dixons will be under watch in the F&O segment. India’s macro indicators are strong.
The country’s industrial production has reached a 26-month high. IIP growth accelerated to 7.8% in December from 3.7% on the back of a strong pick-up in manufacturing and mining. This is being considered a positive sign for the domestic economy.
