Sensex, Nifty open lower over weakness in metal stocks

The Indian equity markets posted moderate losses in early trade on Thursday, tracking poor global cues and weakness in metal stocks.

As of 9.23 am, Sensex lost 254 points, or 0.30 per cent, to reach 83,563, and Nifty eased 85 points, or 0.33 per cent to settle at 25,690.

Main broad-cap indices posted moderate losses, as the Nifty Midcap 100 eased 0.04 per cent, and the Nifty Smallcap 100 edged down 0.31 per cent.

Major sectoral indices traded mixed, with IT insulated from global rout in tech stocks. Most notable losers were metal, down 1.71 per cent and realty, down 0.82 per cent. Nifty oil and gas was the major gainer, up 1.02 per cent.

Immediate support for Nifty lies at 25,600-25,650 zone, while resistance is anchored at 25,900–25,950 zone, market watchers said.

Asia-Pacific markets mostly traded in the red in the morning session as the tech sell-off on Wall Street gained momentum.

In Asian markets, China’s Shanghai index declined 1.03, and Shenzhen eased 0.88 per cent, Japan’s Nikkei lost 0.73 per cent, and Hong Kong’s Hang Seng Index edged down 1.07 per cent. South Korea’s Kospi lost 2.84 per cent.

The US markets ended largely in the red overnight as Nasdaq eased 1.51 per cent. The S&P 500 declined 0.51 per cent, and the Dow Jones added 0.53 per cent.

NSDL data showed that foreign institutional investors remained net sellers across most sectors in January, but turned buyers in metal and capital goods stocks during the month.

On February 4, foreign institutional investors (FIIs) net bought equities worth Rs 30 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 250 crore.

Given ongoing global uncertainties and elevated market volatility, investors are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market corrections, said analysts.