Stock market today: Indian equity indices, the Nifty50 and BSE Sensex, started Thursday’s session on a cautious note, tracking weak global cues. The Nifty50 slipped below the crucial 25,900 mark, while the Sensex dropped over 200 points in early trade. Investors are reacting to robust US employment data, which has dampened hopes for immediate interest rate cuts by the Federal Reserve.
The Indian benchmark indices opened in the red today, reflecting a mix of global macro pressures and sectoral shifts. At 9:16 AM, the Nifty50 was trading at 25,877.80, down 76 points or 0.29%, while the BSE Sensex stood at 83,998.41, declining by 235 points.
Impact of US Jobs Data on Market Sentiment
The primary trigger for the morning’s volatility is the latest employment report from the United States. Data revealed an addition of 130,000 jobs last month, with unemployment falling to 4.3%. While a strong labor market suggests economic resilience, it simultaneously reduces the urgency for the US Federal Reserve to pivot toward a rate-cutting cycle.
Higher-for-longer interest rates in the US typically lead to tighter liquidity in emerging markets like India. This data has pushed US Treasury yields higher, weighing on global equity valuations.
Sectoral Performance: IT vs Financials
The Information Technology (IT) sector remains under significant pressure. Following a sharp correction in American Depository Receipts (ADRs) of major Indian IT firms, the domestic tech pack is struggling to find its footing. Experts suggest that the “Anthropic shock”—referring to shifts in the AI landscape—continues to rattle investor confidence in traditional IT services.
Conversely, domestic-facing sectors are showing resilience. Earnings growth remains the primary support pillar for the stock market today. Sectors such as automobiles, capital goods, financials, and telecom are benefiting from strong internal demand. Companies like Eicher Motors and Titan have seen positive price action following better-than-expected quarterly results.
The Shift in FII Participation
Despite the initial dip, market participants are closely watching the behavior of Foreign Institutional Investors (FIIs). After a period of sustained selling, FIIs have turned net buyers in six of the last seven trading sessions. On Wednesday alone, FIIs purchased equities worth Rs 944 crore, while Domestic Institutional Investors (DIIs) added Rs 125 crore to their portfolios.
This transition from selling to buying suggests that the floor for the market might be firming up. Analysts believe that while profit booking might occur at higher levels, the underlying trend remains resilient due to India’s robust GDP growth and controlled inflation.
Global Cues and Commodity Prices
While Asian markets showed momentum, gaining for a fifth consecutive session due to attractive valuations, the US markets ended Wednesday on a flat to lower note. The Nasdaq and Dow Jones saw marginal declines as investors recalibrated their expectations regarding the Federal Reserve’s next move.
In the commodities space, oil prices have begun to edge higher. Brent crude futures rose to $69.74 per barrel amid resurfacing geopolitical tensions. Rising oil prices often act as a headwind for the Indian economy, given its high import dependency, potentially adding pressure to the rupee.
Outlook for the Trading Session
The stock market today is expected to undergo a period of consolidation. With the rate-cut cycle seemingly on hold both globally and domestically—as the RBI waits for inflation to align with long-term targets—investor focus has shifted entirely to corporate earnings.
Market strategists suggest that the “switch” from IT to performing sectors like jewelry, hotels, and financials will dictate intraday movements. Support levels for the Nifty50 are currently pegged around the 25,750 zone, while resistance remains stiff near 26,100.
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