Sensex, Nifty snap 2-day gains amid muted global cues; IT, consumer durable stocks under pressure

Muted start for markets as global cues turn soft

Indian benchmark indices Sensex and Nifty began the week on a muted note on October 13, snapping their two-day winning streak as global cues remained subdued. All sectoral indices were in the red, with broader indices also showing a weak tone.

Around morning, the Sensex slipped 296.05 points, or 0.36 percent, to 82,204.77, while the Nifty fell 85.55 points, or 0.34 percent, to 25,199.80. On the broader market front, 1,155 shares advanced, 1,946 declined, and 184 remained unchanged.

The broader markets also mirrored the weakness, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling up to 0.3 percent in early trade. The India VIX, which measures near-term market volatility jumped 10 percent, suggesting rising nervousness among investors.

Except for the media and healthcare indices, which posted slim gains, all other sectoral indices traded lower. The Nifty IT index extended losses for the second consecutive session, as shares of Infosys, Persistent Systems, Coforge, and HCL Technologies declined up to one percent.

Investor attention is now on HCL Tech’s second-quarter results, which will follow TCS’s in-line performance that exceeded market expectations on several metrics. Market watchers are also keen to hear about HCL Tech’s AI strategy, especially after TCS unveiled its plans to build a large-scale AI data centre and announced a rare AI-related acquisition last week.

Apart from IT, consumer durables stocks also witnessed profit-booking after seven straight sessions of gains. Shares of Dixon Technologies, Voltas, Blue Star, Whirlpool, and Crompton Greaves fell up to 2 percent in early trade.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Latest comments from President Trump indicate that he is chickening out as he had done many times earlier. His remark ‘don’t worry about China’ suggests that the feared trade war may be avoided. The rebound in US futures shows that the market is not overly concerned about the latest developments. Chances are this sabre-rattling by the world’s two largest economies is temporary.”

He added that consistent foreign institutional investor (FII) buying has provided stability to Indian markets. Over the last four sessions, FIIs have purchased equities worth Rs 3,289 crore. The ongoing uptrend, coupled with short covering, has helped the market remain resilient.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.