After three days of tremendous growth, domestic stock markets recorded a decline on Thursday. Investors turned cautious in early trade and selling in IT and private banking stocks curbed the market rally. Both Nifty 50 and Sensex opened with a slight fall, putting a break on the ongoing rally.
As of 9:15 am, the Sensex was down 94.43 points at 84,372.08, while the Nifty was trading at 25,844.00, down 31.80 points. Trends across sectors in the market remained mixed. Metal sector witnessed strength, but IT and private banking stocks dragged the market down.
IT became the villain of the stock market
The IT index fell 0.34%, while the Nifty private bank index declined 1.17%, leading to a weak overall market sentiment. Meanwhile, the Nifty Metal index led the gains with a gain of 0.91%, while the Media index also gained 0.43%. The auto, oil and gas, and consumer durables sectors saw slight declines.
Other sectors remained sluggish
Nifty Bank, Energy, FMCG, Infra, Pharma, PSU Bank and Realty indices showed no significant changes and traded almost steady. Meanwhile, India VIX fell 3% to 11.75, indicating no panic in the market at the moment.
Retail inflation declines, investors’ expectations rise
The country’s retail inflation rate declined to just 0.25% in October, the lowest since the series began in 2013. Experts believe that this decline in inflation strengthens expectations of another cut in interest rates in the RBI’s December meeting.
Investors cautious due to political uncertainty
Experts say that at present there is no major trigger to take the market to new heights. The exit polls of Bihar elections have had an impact on the market, so the focus of investors is now on the actual results. If the actual results differ from the exit polls, the market may see further volatility.
