Bears dominate D-Street as Nifty battles to hold 24,000; IT, private banks under pressure
Indian equity indices saw a sharp decline in early trade on Friday, reversing the previous sessions’ gains. The Sensex fell over 600 points, while the Nify tested the critical level of 24,000, weighed down by weak global cues and selling in IT and banking stocks.
Day market performance
As of 12:30 PM, the Sensex was lower 568.32 points or 0.71 percenttrading with 79,375.39while Nifty declined 162.25 points or 0.67 percentin 24,026.40. The market saw pressure from heavyweight sectors such as IT and banking, wiping out a significant portion of the New Year rally.
The best pictures of the industry
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IT stock decline: The Nifty IT index shed approx by two percentwith major players like TCS, Infosys, and Wipro underperforming due to concerns about US revenue streams and macroeconomic pressures.
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Bank withdrawal: Weakness in bank stocks, especially private sector banks, added momentum to the decline.
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Advantages in PSU banks, Media: The Nifty PSU Bank and Media indices bucked the trend, rising one percent again by two percentrespectively.
The main causes of the market decline
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Crude price increase: Brent crude futures rose 1.7 percent above $75 per barrel, raising inflation concerns for oil-importing countries like India.
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Global conditions: A strong US dollar and rising Treasury yields kept foreign investors cautious, weighing on Indian markets.
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Earnings season on the radar: Markets are waiting for corporate earnings to start next week, while analysts expect muted numbers amid global economic uncertainty.
A technical perspective
I 24,000 mark for Nifty it remains an important support level. Analysts warn that a breach of strict rules could lead to high volatility and a sideways market trend.
