The Indian stock market witnessed another day of decline as key indices closed lower for the third consecutive session.
Selling pressure in financial and IT stocks weighed on the market, despite gains in the metal and real estate sectors. Investors remained cautious amid global uncertainties, with the US Federal Reserve minutes indicating a prolonged stance on high interest rates.
The 30-share BSE Sensex dropped 203.22 points or 0.27 per cent to settle at 75,735.96. During the day, it tanked 476.17 points or 0.62 per cent to 75,463.01. The NSE Nifty dipped 19.75 points or 0.09 per cent to 22,913.15. Selling in frontline stocks HDFC Bank and ICICI Bank also dragged down the key indices.
The Nifty Midcap 100 index posted a gain of 1.30 pc, while the Nifty Smallcap 100 index advanced by 1.43 pc, reflecting investor confidence in mid and small-cap stocks.
Among the Nifty 50 constituents, 27 stocks closed in the green. Shriram Finance emerged as the top gainer with a 4.1 pc rise, followed by NTPC, Mahindra & Mahindra, Bharat Electronics, and Trent, which recorded gains between 2.2 pc and 3.3 pc.
On the other hand, HDFC Bank, Maruti Suzuki India, and Tech Mahindra led the losses, declining by 2.3 pc, 1.9 pc, and 1.7 pc, respectively.
Market experts attributed the decline to global factors, including potential US tariffs on Indian exports and uncertainty over interest rate cuts.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the proposed trade policies and the cautious stance of the US Federal Reserve may keep inflationary pressures high.
However, he noted that the broader market showed some strength, driven by expectations of improved domestic consumption in the coming quarters.
Sectoral performance reflected mixed trends. The Nifty Metal index was the best performer, surging by 1.96 pc, supported by strong global commodity prices. The Nifty PSU Bank and Nifty Oil & Gas indices also posted gains of 1.70 pc and 1.35 pc, respectively.
Meanwhile, the Nifty Bank index was the biggest laggard, slipping by 0.48 pc, followed by declines in the Nifty Pharma and Nifty FMCG indices.
The release of the US Federal Reserve’s January meeting minutes influenced global sentiment, as policymakers signalled that interest rates would remain elevated for a longer period.
The Fed's stance on inflation and trade tensions also impacted IT stocks, which saw a decline in today’s session. Analysts suggested that a further dip in inflation or a slowdown in the labour market could prompt the Fed to reconsider its policy stance in the coming months.
Gold prices continued their upward rally, reaching a record high of $2,954.60 per troy ounce. The metal has gained 12.5 pc since the beginning of the year, with investors seeking safe-haven assets amid global trade concerns and geopolitical uncertainties.
Technical analysts highlighted that Nifty remained in a consolidation phase, moving within a narrow range. Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the index is currently facing resistance at 23,150, while support is placed at 22,800.
Analysts at Bajaj Broking also indicated that dips towards 22,700–22,800 could present buying opportunities, while a breakout above 23,050 could lead to further gains.
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