Bears dominate D-Street as Nifty battles to hold 24,000; IT, private banks under pressure
Markets reverse New Year gains as IT, banks weigh; Nifty eyes 24,000 support.
Indian equity benchmarks saw a steep decline in early trade on Friday, reversing gains from the previous sessions. The Sensex plunged over 600 points, while the Nifty tested the critical 24,000 level, weighed down by weak global cues and selling in IT and banking stocks.
Midday market performance
As of 12:30 PM, the Sensex was down 568.32 points or 0.71 per cent, trading at 79,375.39, while the Nifty declined 162.25 points or 0.67 per cent, to 24,026.40. The market saw pressure from heavyweight sectors such as IT and banks, erasing a significant part of the New Year rally.
Sectoral highlights
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IT stocks slump: The Nifty IT index shed nearly two per cent, with major players like TCS, Infosys, and Wipro underperforming due to concerns about U.S. revenue streams and macroeconomic pressures.
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Banking drag: Weakness in banking stocks, particularly private sector banks, added to the downward momentum.
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Gains in PSU Banks, Media: The Nifty PSU Bank and Media indices bucked the trend, rising one per cent and two per cent, respectively.
Key triggers for market decline
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Crude price surge: Brent crude futures rose 1.7 per cent to over $75 per barrel, raising inflation concerns for oil-importing nations like India.
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Global macro conditions: A stronger U.S. dollar and rising Treasury yields kept foreign investors cautious, pressuring Indian markets.
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Earnings season on radar: Markets await corporate earnings set to begin next week, with analysts expecting muted numbers amid global economic uncertainties.
Technical outlook
The 24,000 mark on the Nifty remains a crucial support level. Analysts warn that a decisive breach could lead to heightened volatility and a sideways market trend.
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01:09 PM IST