Sensex, Nifty fall on FII selling pressure; IT results eyed
Indian equity benchmarks opened lower on Thursday, extending their decline for the fifth consecutive session as foreign institutional investors continued their selling spree amid a stronger dollar and rising US bond yields.
The BSESensex fell 259.60 points or 0.33 per cent to 77,888.89, while the NSENifty declined 83.70 points or 0.35 per cent to 23,605.25 in early trade. The market weakness comes as FIIs sold equities worth ₹3,362 crore on January 8, while domestic institutional investors bought shares worth ₹2,716.28 crore.
“With the dollar index at 109 and the 10-year bond yield at 4.67 per cent, FIIs are likely to continue with their selling strategy putting pressure on the market in the near-term,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that “the results of TCS will give an indication of what is in store for the IT sector.”
Among sectoral movements, oil and gas stocks showed strength while healthcare and pharmaceutical counters witnessed profit booking. The market volatility index, India VIX, was down 1.33 per cent at 14.4650.
In early trade, Kotak Bank emerged as the top gainer on the NSE, rising 1.54 per cent, followed by Hindalco (+0.89 per cent), Bajaj Auto (+0.81 per cent), Infosys (+0.37 per cent), and M&M (+0.22 per cent). On the flip side, Apollo Hospitals led the losers, dropping 1.77 per cent, followed by Trent (-1.49 per cent), UltraTech Cement (-1.39 per cent), L&T (-1.33 per cent), and Grasim (-1.18 per cent).
The market sentiment was also impacted by the latest economic projections showing India’s GDP growth could slow to a four-year low of 6.4 per cent in FY25, below the RBI’s estimate of 6.6 per cent. Adding to concerns, the government’s revision of November’s gold import data from $14.8 billion to $9.8 billion has raised questions about data accuracy.
“Such errors raise doubts about the accuracy of government data, eroding the trust among foreign investors,” noted VLA Ambala, Research Analyst and Co-Founder of Stock Market Today.
In commodities, crude oil futures traded lower after U.S. inventory data showed an increase in product stockpiles. Brent crude futures were down 0.11 per cent at $76.08 per barrel, while WTI crude declined 0.14 per cent to $73.22.
Gold and silver prices retreated from their intraday highs due to dollar strength and elevated U.S. bond yields. “Global financial instability, stemming from President-elect Trump’s tariff threats, constrained further gains in the precious metals market,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Technical analysts suggest key support levels for the market. “We believe this pullback formation is likely to continue as long as the market remains above 23,500,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. He added that “on the upside, it could rebound to around 23,800.”
Looking ahead, market participants are closely watching the upcoming quarterly results season, budget announcements, and the RBI’s MPC meeting, which could add to market volatility. Premium segments including hotels, jewellery, automobiles, and airlines are expected to report strong numbers for the quarter.