Markets edge lower as IT stocks drag, gold continues rally 

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The Indian stock markets dipped in afternoon trading on Wednesday, with the benchmark Sensex and Nifty indices both in the red as IT stocks faced selling pressure. The Sensex was down 115.67 points or 0.14% at 84,798.37, while the Nifty fell 51.35 points or 0.2% to 25,889.05 as of 1:08 PM.

The market breadth was negative, with declines outnumbering advances on the BSE. Out of 3,977 stocks traded, 2,341 declined, 1,522 advanced, and 114 remained unchanged. Despite the overall downturn, 238 stocks hit their 52-week highs, while 33 touched 52-week lows.

IT stocks led the losses, with LTIM plunging 3.74%, followed by Tech Mahindra (-2.68%) and Wipro (-1.52%). Other major losers included Tata Consumer Products (-2.10%) and Tata Motors (-1.67%).

On the flip side, Power Grid Corporation was the top gainer, surging 2.84%. Axis Bank and NTPC also saw gains of 1.28% and 1.14% respectively. Grasim Industries and Divi’s Laboratories rounded out the top five gainers, up 0.89% and 0.80% respectively.

Sectoral indices showed a mixed performance. The Nifty Bank index was up 0.14% at 54,041.90, while the Nifty Financial Services index gained 0.28% to reach 24,953.15. However, the Nifty Next 50 and Nifty Midcap Select indices were both in negative territory.

Gold prices continued their upward trajectory, outperforming most asset classes in 2024. Nish Bhatt, Founder & CEO of Millwood Kane International, commented on the rally: “Gold has scaled fresh highs with $2700/oz in sight in the international market, whereas the ₹76,000 level has been attained in the domestic market…”

Bhatt attributed the gold rally to expectations of rate cuts by the US Federal Reserve and geopolitical tensions, stating, “The rally in gold is due to a combination of factors… Escalating tensions between Lebanon and Israel and higher buying by ETFs will keep the demand for gold higher in the short to medium term.”

As the trading day progressed, investors remained cautious, closely monitoring global cues and domestic economic indicators for further direction.