Market Today: Sensex Drops 250 Points, Nifty Slips Below 22,550 on Weak Global Cues

Stock Market Today, October 8: Indian benchmark indices opened lower on Thursday as weak global cues and continued volatility weighed on investor sentiment. The selling was more pronounced across mid- and small-cap stocks, while technology shares emerged as the key outperformers in early trade.

At 9:25 am, the BSE Sensex was down 249.87 points, or 0.34%, at 72,388.83. The Nifty 50 stood at 22,520.85, lower by 82.20 points, or 0.36%.

Global Cues Remain Weak

Asian markets traded lower amid renewed concerns over inflation and the outlook for interest rates. Japan’s Nikkei 225 declined more than 1%, while South Korea’s KOSPI slipped over 0.5%.

The cautious global backdrop added to pressure on domestic equities, which have remained volatile in recent sessions.

Mid- and Small-Caps Under Pressure

The broader market witnessed heavier selling than the benchmark indices.

The Nifty Midcap Select index fell 1.06%, while the Nifty Midcap 50 declined 0.93%. The India VIX, a measure of expected market volatility, rose 1.11% to 14.04, signalling increased near-term uncertainty.

IT Stocks Buck the Trend

Information technology stocks were the biggest bright spot in early trading.

The Nifty IT index gained 1.78%, supported by buying across major IT companies. TCS emerged as the top Sensex gainer, rising 2.46%, while HCLTech advanced 2.29%.

Tech Mahindra gained 1.92% and Infosys rose 1.61%. The Nifty MidSmall IT & Telecom index also climbed 0.99%.

Realty, Metals Face Selling

Realty and metal stocks came under significant pressure.

The Nifty Realty index declined 1.25%, while the Nifty Metal index dropped 1.11%. The Nifty Financial Services ex-Bank index fell 1.13%, and the Nifty MidSmall Financial Services index declined 1.06%.

Other sectoral indices were also in the red. Nifty Auto fell 0.57%, FMCG declined 0.59%, Oil & Gas dropped 0.68%, while Consumer Durables slipped 0.54%.

Banking Stocks Also Lower

Banking shares remained under pressure in early trade, with the Nifty Bank index falling 0.35% to 54,863.70.

HDFC Bank declined 0.38%, Axis Bank fell 0.29%, ICICI Bank slipped 0.27%, SBI dropped 0.28% and Kotak Mahindra Bank was down 0.28%.

Among Sensex constituents, TCS, HCLTech, Tech Mahindra and Infosys led the gainers.

On the losing side, ITC declined 1.81%, while Tata Steel fell 1.03%. Adani Ports dropped 1.21%, BEL declined 1.25%, Bajaj Finance slipped 1.26% and M&M was down 0.73%.

What Experts Are Saying

V K Vijayakumar, chief investment strategist at Geojit Investments, said the RBI’s calibrated tightening stance could have implications for equity valuations as higher interest rates make fixed-income investments more attractive.

He expects two further 25-basis-point rate hikes during the current tightening cycle, which could put additional pressure on equity valuations. According to him, investors may gradually shift towards sectors that are relatively less sensitive to interest rates, including pharmaceuticals.

Vijayakumar also pointed to a growing preference for growth stocks over value stocks in recent months. While growth companies are attracting buying interest despite elevated valuations, value stocks have remained relatively subdued.

He attributed part of the pressure on large-cap stocks to sustained selling by foreign institutional investors (FIIs). With the US 10-year Treasury yield remaining above 5.3%, he expects continued FII selling during market rallies, which could keep large-cap Nifty stocks under pressure.

According to Vijayakumar, a sustained reversal would require FIIs to turn net buyers, although the timing remains uncertain.

He advised investors to remain patient with value stocks and also consider opportunities in fixed-income investments as interest rates rise.