Markets Open Lower Amid Global Uncertainty; Tech Drags, Nifty Slips Below 24,800
Indian equity benchmarks opened on a cautious note Thursday, tracking weak global cues amid ongoing geopolitical tensions and the US Federal Reserve’s decision to hold interest rates. The BSE Sensex fell 225.26 points to 81,219.40, while the NSE Nifty50 slipped 56.75 points to 24,755.30 in early trade, weighed down by declines in IT stocks.
Market sentiment remained subdued as investors reacted to the Fed’s hawkish tone and uncertainty surrounding the Israel-Iran conflict. The US central bank kept its benchmark lending rate unchanged but signaled only limited rate cuts next year. At the same time, geopolitical tensions in West Asia, particularly the potential impact on oil prices, continued to cloud the outlook.
“The 24,500–25,000 range for the Nifty is likely to hold unless there’s a significant shift in West Asia,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “A de-escalation in tensions could lead to a breakout above 25,000, but a flare-up—especially affecting the Strait of Hormuz—could pressure the index below 24,500.”
Gainers & Losers: Auto and Bank Stocks Up, Tech Under Pressure
Among early gainers on the Nifty, Titan led the pack, rising 0.68%, followed by Tata Motors (+0.66%), Kotak Mahindra Bank (+0.47%), Mahindra & Mahindra (+0.35%), and Bajaj Finserv (+0.23%).
The biggest drag came from IT stocks. Tech Mahindra fell 1.63%, while Infosys and HCL Technologies declined 1.01% and 0.75%, respectively. IndusInd Bank and Adani Ports also slipped over 0.50% each.
Sectoral Trends Mixed
Sector-wise performance was mixed.
Advancing sectors included:
Nifty Consumer Durables: +0.58%
Nifty Auto: +0.44%
Nifty Media: +0.24%
Nifty Realty: +0.22%
Nifty Financial Services: +0.15%
Nifty Private Bank: +0.15%
Nifty FMCG: +0.04%
Declining sectors included:
Nifty IT: –0.63%
Nifty Metal: –0.43%
Nifty Healthcare: –0.22%
Nifty Pharma: –0.20%
Nifty Oil & Gas: –0.15%
Nifty PSU Bank: –0.39%
The Nifty Midcap 100 dipped 0.07%, while the Nifty Smallcap 100 edged up 0.14%. Meanwhile, the India VIX, a measure of market volatility, dropped 2.38%, indicating subdued near-term volatility expectations.
Macro Outlook: Fed Steady, India Still Attractive
Despite global uncertainty, India remains well-positioned for capital inflows, according to Vijayakumar.
“The US economy is only expected to grow by 1.4% this year, which may limit capital attraction. This is favourable for India,” he said. “However, high valuations remain a concern. A sustainable rally will likely depend on consistent earnings growth, which is still some distance away.”
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