IT & Financials Drag Indian Equity Benchmarks Lower as Global Rally Stalls

By 12:03 p.m. IST, the Nifty 50 had dipped 0.13 per cent to 24,635, while the BSE Sensex fell 0.20 per cent to 80,163.

Market Update at 12:30 PM: India's benchmark indices edged lower on Thursday as financial stocks, which carry significant weight, dragged the market down amid a pause in the global rally that had been fueled by easing tensions in U.S.-China trade relations.

By 12:03 p.m. IST, the Nifty 50 had dipped 0.13 per cent to 24,635, while the BSE Sensex fell 0.20 per cent to 80,163. Out of the 17 major sectoral indices, 12 were trading in the red, with the IT sector slipping 0.5 per cent.

Key constituents of the Nifty — HDFC Bank, ICICI Bank, and Reliance Industries — each saw a decline of around 0.6 per cent. 

The Nifty and Sensex had rallied about 2.5 per cent over the last three sessions, hitting a seven-month peak on Tuesday, supported by easing geopolitical tensions and optimism surrounding global trade.

On the other hand, smaller stocks outperformed; the Nifty Smallcap index gained 0.37 per cent and the Mid-Cap index rose 0.2 per cent, extending their weekly gains to 7 per cent and 5.7 per cent, respectively.

Market Update at 10:20 AM: India’s key equity indices started Thursday on a flat note after a recent uptrend, as market participants anticipated some consolidation following the rally spurred by cooling inflation data and signs of progress in U.S.-China trade relations.

At 9:17 a.m. IST, the Nifty 50 edged down 0.1 per cent to 24,642.25, while the BSE Sensex slipped 0.1 per cent to 81,288.59.

Out of the 13 major sectoral indices, nine opened in the red. Meanwhile, broader market indices such as the Small-Cap and Mid-cap remained largely unchanged.

In the broader region, Asian markets also showed little movement. 

On Wall Street, major indices ended mixed overnight following a sharp early-week rally that was fueled by optimism around a U.S.-China trade understanding.

Despite having risen 2.7 per cent and 2.4 per cent respectively this week, both the Nifty 50 and Sensex are now near their highest levels in seven months.

Pre-Market Update at 8:00 AM: Early trends from Gift Nifty point to a positive start for domestic markets. At around 7:16 am, Gift Nifty hovered near 24,752, indicating a premium of 38 points over the previous Nifty close and suggesting a possible gap-up opening.

Asian equities opened in the red on Thursday after a four-day winning streak, while US markets posted mixed results overnight. The Nasdaq Composite gained 0.72 per cent, the S&P 500 edged up 0.1 per cent, but the Dow Jones Industrial Average slipped 0.21 per cent.

A number of prominent companies are set to release their Q4 earnings today. These include JSW Energy, Cochin Shipyard, PB Fintech, Patanjali Foods, Abbott India, Page Industries, Tube Investments of India, Godfrey Phillips India, and ITC Hotels. Stock-specific movements may be seen based on these results.

On May 14, Foreign Institutional Investors (FIIs) were net buyers, investing Rs 931.80 crore in equities. Domestic Institutional Investors (DIIs) also purchased shares worth Rs 316.31 crore.

Markets ended Wednesday's session with modest gains. Buoyed by lower retail inflation and steady global cues, the Sensex rose by 182 points to 81,330.56, while the Nifty 50 climbed 89 points to close at 24,666.90. Volatility eased, with India VIX declining 5.6 per cent to 17.18.

Gold prices softened slightly as geopolitical tensions eased. Spot gold fell by 0.02 per cent to USD 3,177 per ounce, while Indian gold futures declined by 1.48 per cent to Rs 92,265. In the crude market, prices pulled back after a recent rally. Brent crude dropped 1.38 per cent to USD 64.47 per barrel, and WTI fell 1.33 per cent to USD 61.37.

For today, CDSL, Hindustan Copper and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.